Английский язык. Лобакина Е.В - 9 стр.

                                            9
 De Bijenkorf were in trouble for several reasons. In the past 10 years, people ad
been moving away from the cities where the stores were situated. In Amsterdam the
population fell by 15%; in Rotterdam, it dropped by 17%. Most of those leaving were
in the higher income groups.
 The De Bijenkorf stores were also facing strong competition from discount houses,
superstores and cash-and-carry businesses. These sold cheap or cut-price goods,
through their service was often below standard.
 Finally, De Bijenkorf were uncertain which section of the market they were aiming at.
As a result, their image was not clear in the minds of the public. Sometimes, they had
sales promotions to attract well-off buyers. At other times, they were offering price
cuts on various items.
 How could the management improve the stores` financial situation? To find the
answer, they carried out a three-year study of their business. A team of research
workers produced two important reports – the profitability analysis and the marketing
analysis. The first showed which goods were actually making a profit; the second
indicated those which were likely to be profitable in the future.
 The information from the reports was very useful. It helped De Bijenkorf to decide
which goods to continue selling, and which departments to keep open. The choice was
not always easy. Some goods, such as toys, were not profitable, but they attracted
customers, who then bought other things.
 Naturally, the management made several changes as a result of the study. They got rid
of some departments and expanded others. Then they created a new image for De
Bejenkorf. They began to aim their sales strategy at people in higher income groups. In
other words, the stores went up-market. In addition the management spent a lot of
money on renovating the interior of the buildings.
 The changes were made to attract a special kind of customer – someone who liked
good living. As the head of the stores said: “We wanted a market where it is possible to
express personality… where the type of goods you buy shows the kind of person you
are.”

Language note
Cash-and-carry – a large shop where goods are sold at low prices if they are paid for at
once and taken away by the buyer.


  Ex.4. Comprehension. Answer the following questions.

1)       What type of customer do big stores aim to attract?
2)       Where are the De Bijenkorf stores situated? What problem have they had
because of their location?
3)       Why did the management of De Bijenkorf decide to make a careful study of
their stores?
4)       What did the management learn from their study?
5)       Explain the meaning of these phrases:
-        elegant living