27 May 2005

Advantages of being a 'Multiple'

What is a 'multiple'?

Multiples are described as a retailer with atleast two, five or ten outlets.

The Growth Cycle

The growth of multiple's create improved buying power in terms of supply of goods, recruiting staff, acquisitions and also in services it buys from outside suppliers, such as advertising agencies, accounting (back-office services), etc.
Leading to:

Economies of scale are achieved through the ability to develop products, brand image, improving supply chains, which can be rolled out over a larger number of locations.
Leading To:

Margin Gains.
Leading To:

This enables a retailer to offer competitive prices through discounts, special offers and improvements in its product/service mix through increased product/service quality, offering choices and convenience.

Leading To:

Future Growth of a multiple-retailer.

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