Marshalls is owned and operated by TJX Stores, based in the United States. The chain specializes in apparel, domestics, accessories, Giftware and jewelry. TJX operates more than 3,200 stores across the country. Marshalls has a full line of menswear and shoes with over 940 stores in America. On the other hand, its HomeGoods chain specializes in home furnishings, and has more than 450 stores scattered across the US. Read this SWOT analysis of Marshalls and discover how the business environment shapes its business performance. The analysis will focus on the company’s strengths, weaknesses, opportunities and threats.
Marshalls remains a leading chain retailer and brand name in the United. In this section, you will understand some of the company’s areas of strength. Firstly, Marshalls is a strong brand name. Today, it is America’s second largest off-price retailer of family apparel and home fashion.
In terms of performance, Marshall’s has recorded stable financial results in recent years. For example, in 2014, the chain registered an increase of 6% in its revenues. During this fiscal year, jewelries, accessories, and home fashions performed exceptionally well to boost the company sales. In most parts of the US, the sales were because of higher prices and customer traffic, driven by unfavorable weather patterns in some regions.
The company also has appealing designer products, which attract customers. In other words, Marshalls keeps pace with the changing world of fashion to meet the tastes and preferences of its customers at all times. The volatility of the economy and the looming recession also drives most US buyers to off-price stores.
Even with the above areas of strength, this SWOT analysis of Marshalls reveals that the company has several weak points, which undermine the thriving of its business. What are these bottlenecks? The first weakness is the company’s low brand awareness. Marshalls has not done well in creating awareness of its brand across the country. Thus, in some States, people do not know a lot about its products and services.
Another weakness for Marshall is its low standard customer care services. Cases of customer dissatisfaction at Marshalls are common. This leads to loss of credibility and mistrust as customers do not feel valued by the company.
In addition, Marshalls’ small business units affect the company’s performance. When compiled, the cost of running these scattered business units poses a challenge of bloated cost of running the business. The current and future competitors of Marshalls also undermine the company’s ability to excel in the market.
From this SWOT analysis of Marshalls, it is clear that it has several opportunities, which the management could exploit to ensure that it remains top on the game. Its greatest opportunity is the looming recession and economic volatility. If the US economy does not grow, consumers will have low purchasing power and opt for offset price stores like Marshalls. This would increase the company’s customer base and profits in the end.
Another opportunity for Marshalls is expansion of its network to other countries. Today, Marshalls operates mainly in the US. It should consider having stores in emerging Asian markets like India and China, which offer potential for business expansion.
In addition, Marshalls should consider introducing new products in its stores. A good consideration is the introduction of sunglasses and jewelry collection. This would attract more customers and enhance its competitive advantage in the market.
Marshalls, like other company in the world, has a range of threats that make it hard to realize its full potential. What are these challenges? The first serious threat is cutthroat competition. Its main competitors are Ross Stores, Retail Ventures and Men’s Wearhouse. With this stiff competition, the company is torn between making profits and maintaining its rank in the market. This may affect profits, as more strategies are sort to strengthen its brand in the market and counter competition.
Moreover, the fluctuating economic growth poses a real threat to the future of the business. In particular, the ability of customers to purchase will depend on the economy.
This SWOT analysis of Marshalls presents strengths, weaknesses, opportunities and threats of the company. Do you need more help?