The city of Winston has two large department stores: Namen and Roscoe. Namen is known for its high-end designer fashions, while Roscoe is known for more affordable fashion options. Both Namen and Roscoe are each considering opening another store in the growing suburb of Salem, where the population has grown over 50% in the last three years and where the median income is $75,000. Namen’s executives argue that as population and median income increase, people are willing to spend more money on clothing. However, Roscoe’s executives believe that the suburbs are more family oriented, and therefore their store will be more profitable than their competitor Namen.

Write a response in which you discuss what questions would need to be answered in order to decide whether the recommendation is likely to have the predicted result. Be sure to explain how the answers to these questions would help to evaluate the recommendation.


Response:

Both fashion retailers, Roscoe and Namen can rest their respective prediction results of the considerations by further brainstorming thourgh either missing or mandated facts from the given aurgument.

There are couple of details likely oversaught in why to open stores in Salem. In salem, income level stated is medium. There is no details of living cost in salem. The income level might get balanced for living and eating. Hence, there might be little expenditure on clothing. Namen's consideration fails to detail this evidence. Also, Roscoe belief that sub urban is family oriented lacks proof. Many a times, sub urban can be occupied by migrant workers who stay alone working with family staying elsewhere. Roscoe assumption that family oreinented population gives leverage over Namem lacks assertion - the current financial situations againt Winston's population density aren't provided to consider a case at Salem.

Also, Namen is said high-end fashion store. The customers' data of Namen's Winston's store is not provided to assert the executives' aurgument of population and income increase is good indication for willingness on clothing. Wiston's population might be sparse with higher income levels than Salem's mediam income levels which might be driving Namen's growth despite costly clothing,

Moreover, Roscoe assumes family oriented population most likely prefer afforable clothing. If the sub urbans are populated with wealthy families, odds are in favour to spend for tailor made designs and therefore might chose Namen over Roscoe.

Mainting the above fallacies in considering to scale up operations from Wiston to Salem, both Roscoe and Namen should consider brainstomring once agani.