Questions
1. What competitive priority' is important for a discount store such as Zellers?
2. Three generic strategies are low cost, niche market, and product differentiation. Which one of these was Zellers using before 1998? After 1998?
3. Do you think Zellers’ actions after 1998 fit its new mission? Explain.
Zellers is Canada’s largest mass merchandise discount store chain. It has approximately 300 stores throughout Canada with annual sales of approximately $4.6 billion. Up until a few years ago, Zellers was owned by the Hudson's Bay Company (HBC), which also owned The Bay, a major department store with approximately 100 stores. Prior to the late 1990s, Zellers targeted budget-minded customers with the slogan, "Lowest Price is the Law.”