VALUE FOR MONEY STRATEGY

Presented by:Rashmi Tak

What do we mean by value for money? – getting the balance right

Company profile about Littlewoods plc

• It is the largest privately owned family company in the United Kingdom, with shareholder’s investment valued at £998.3 million = 698 crore rupees.

• Started in 1923 as a football pool business by John Moores and two partners.

• retail in 1932 with a mail order.• In 1937 they opened the first Littlewoods chain

store.

• By the year 2001 ,181 Littlewoods Index catalog shops.

• 24 Littlewoods discount stores featuring variety of quality goods at discount prices.

• The company was also involved in internet retailing through e-commerce sites.

• To appeal to women, Littlewoods Mail Order Stores were begun in 1932. logical diversification.

• Chain store retailing in mid1930’s .• By 1950 ‘s there were about 52 Little woods

stores.• In 1953 Moores realized the advent of credit-

buying society.• In 1990 it became a sophisticated and

automated credit system depended on telephone orders.

• In 1990’s although the existing recession Littlewoods produced a pretax profit of 46%.

• it had to face competition from National lottery that opened in 1994 and also the death of Sir John Moores.

• Family feuding and interference in the management led to the takeover bids.

• However in 1995 it agreed not to sell off and appointed a new chairman James Ross.

• It shifted from retail to mail order (direct mail home catalog).• It tried to buy Freeman’s ,Sears PLC’s mail order operation in

the year 1997 but it was trumped off. • High street stores were being hard hit by competition from

discount chains as New Look, Matalan, and Peacocks. • Had trading loss of £15.6m= 11 crore• In 2000 Barry Gibson appointed as group chief executive in

1997 Littlewoods would adopt a “value for money strategy”.• With the prices of some clothing lines reduced by more than

40 percent.

• prices were 15% lower in the Littlewoods Spring catalogue.

• As a whole, the group posted profits of £141m, having made £155m out of selling off the pools and betting business, and £23m from other disposals.

• Interest free credit for 52 weeks.

THE COVER PAGE OF THE WEBSITE OF LITTLEWOODS

Benefits provided by Littlewoods to its customers

• Shopping goods directly from home.• All goods from fashion to electrical • Shop for jewellery, nursery goods and sports

equipment including all top brands.• Provide discount vouchers for providing

additional savings on products with money saving discount and promos.

• Facility of ordering free catalogue.

• site also features a bargain section and a great gift finder.

• LW home shopping have £15 off on their first order.

• LX Direct stores show stock and delivery availability.

• LW home shopping all orders are delivered fast and free.

How Littlewoods Improved its SCM

Problem : overstocking problems in supply chain management

Solution: Introduced web-based performance reporting system.

Enabled merchandising personnel to make more accurate stock, sales and supplier decisions.

Introduced web based performance reporting system