How Libertys Make Become a Successful International Retailer - Assignment Example

Critically assess how Liberty’s make become a successful international retailer? The famous London based departmental store ‘Liberty’ has plans to embark on a very strategic review process. The review plan is geared at bringing in new investors that would facilitate the full expansion of the departmental store both within the United Kingdom and on the international arena. In line with this plan, the firm would be assisted by the Retailer in the appointment of Cavendish Corporate Finance and Global Leisure Partners that are highly considered acquisition specialists to facilitate the identification of ideal partners. The type of partners that the store is out to look for has thus not been made public. With the move at hand, the major share holder of the Liberty store MWB Group Holdings stands to have a large proportion of its stake in the firm diluted. This implies that the large share holding held by MWB would be shared with the incoming partners. Speaking for the departmental store, the spokesman indicated that it is a high time that the store upheld a strategic review of the organization based on its excellent first half performance. The spokesman added on to say that the stake holders of the departmental store strongly believed that there existed a great opportunity for the store to successfully venture in to the international market. However, it also emerged that the firm was not so sure at the time of going public whether the incoming partners would be sourced from joint ventures with other operators or by bringing in a number of new investors (Hall 2009). Liberty departmental store is a well established firm based on the Great Marlborough Street in London. The store came in to operation in the year 1875 while offering oriental silk fabrics. It later moved in to the sale of liberty prints alongside designs becoming part of the magnificent shopping complex. The once mock – Tudor store was first started by Arthur Lasenby Liberty who was both an explorer and a renowned globe-trotter. Arthur is said to have borrowed a sum of two thousand sterling pounds from a man who later on became his father in-law. With the loan, he took to lease part of a shop on a very prominent street in London. Liberty store started with only three members of staff. The success of the founder can not be ignored at a time when the store plans to earn itself a new face in the business arena. Mr. Liberty is thought to have established very ideal business relationships with a number of business partners including most renowned designers in the whole of the United Kingdom. The store has been greatly transformed from what it was at the onset and the move to venture in to international operations with the incorporation of new investors would be considered as part and parcel of the tradition of change that the firm is highly known for. The progress of this departmental store from the start up to the current position can all be credited to the change process (Hall 2009). Liberty is a very beautiful departmental store depicting the beauty of the long gone era in the twenty first century. The interior design of this store is magnificent and at the same time flawless with everything depicted in the most wonderful form of presentation. All the goods offered in this store are highly credited as of the highest quality regardless of their pricing. Most buyers have severally confirmed that what they part with for every single purchase at this store is worthy the service they get in return. With the mention of service for a goods store, liberty is a store that offers its customers lots of after sale services for a number of trendy items purchased from its shelves. With the move to expand its operations to the international arena, a lot is expected for grabs by majority of its loyal customers both at home and abroad. Majority of the customers have been quick to associate the move to expand the operations with increased variety in the provision of merchandise. The review has thus been highly welcomed by majority of the customers some of whom may be prospective partners that have eagerly been waiting for the store to go public on this. Identifying with a well established business operation is some thing that can not be ignored by the majority. As at the moment, Liberty departmental store is only based in London with no other branches outside London. This according to critics is an aspect that has been pushing a number of shoppers to stop and shop at the store as much of what is offered here is not available any where else outside London. It is indeed true that Liberty is one of London’s best three departmental stores other than Harrods and the Fortnum &Mason. The beauty of this store is an aspect that greatly sells its merchandise. In its most influential building, its stock can never be ignored. The artistic building housing this departmental store is more of an oak paneled kind of treasure. The store is heavily stocked with lots of eclectic collections of all sorts of fashion and jewelry. Most of what is offered is elegantly depicted in a number of its prints. The main artistic aspect about the liberty departmental store lies with the unusual and highly credited objects fashioned with images from all over the globe (Hall 2009). With the review process to source for partners, the departmental store stands to get the highest number of prospective partners. This is because a number of buyers have severally indicated their willingness to remain loyal to this store as any single purchase is such a wonderful experience that is told for ages. This can not definitely compare with the identity that is bound to be earned from seeking to partner with this store. The response from the general public on the move to source for more partners geared at the expansion of its operations was very positive. This indicated that majority of the members of the general public who might be prospective partners might have been greatly waiting for this opportunity. This indicates that identifying with this departmental store is highly credited. This explains why even before the store goes public on the type of partners it is looking for, there already exists a big number of willing partners within London alone (Hall 2009). According to the spokesman, the allegations that the main stake holder MWB plans to offer for sale its major stake holding are not true. MWB controls majority of the share holding in the departmental store and is considered to the actual owner of the liberty departmental store as at the moment. Selling its share holding would imply transferring the legal ownership of this enterprise. This he further added on to say would not happen especially with MWB’s chief executive being the current chairman at Liberty. The newly outsourced chief executive officer of Liberty departmental store is headed towards the full enforcement of this review strategy. Geoffroy de La Bourdonnaye is the current chief executive officer of the Liberty departmental store outsourced from France with a long term experience of top management. The departmental store highly considers innovation as this might have been the reason behind its move to recruit a French chief executive officer at the expense of all the executives back in London. He plans to be fully involved in the strategic review process as indicated by the spokesman. According to financial reports, Liberty departmental store has had a good progress with regard to its trade. A certain financial report filed by the store indicates that the last financial year saw Liberty departmental store making a nine percent increase in financial gains of up to fifty million sterling pounds. A similar report indicated that this gain came just after the departmental store had experienced a full year of losses (Hall 2009). At a time when the Liberty departmental store thinks it has what it takes to venture in to the international arena, its progress from the initial venture to what it is now remains a fundamental aspect. This is thought to be one store that has been undergoing tremendous change from the initial venture to what it has now become. A quick look at the progress of this store from the early start to the current position would surely point to the fact that change is an aspect that is highly credited in the management and operation of this business venture. Most of the progress and the success being celebrated at the moment has its roots in the initial start. Most of the partners that the founder of this store sought to link up with were majorly well established members of the arts and crafts movement within the United Kingdom. One would thus be quick to think that the tradition of partnering with others is an aspect that is highly considered in this departmental store. However, the types of partners that the initial founders closely associated with were such that would provide the store with its supplies. These in business considerations were majorly suppliers whose produce found its way on the shelves of the Liberty departmental store. The present location in the West End of London was settled for in the year 1924. This is said to have been a time when the store felt the Tudor revival. The design of the shop was elegantly upheld with material being sourced from two big ships; HMS Hindustan and HMS impregnable. According to the spokesman , the type of partners that the departmental store seeks for its review process have not been limited to any line of operation like it was for the initial start. Prospective partners may thus be sourced from investors on the home market and other business operations from the international market. The limits of the international operation that the departmental store is seeking to venture in to has also not been ascertained. However, chances are that the departmental store plans to increase its market share both at home and in the entire western region. Prospective partners may thus be drawn from various ventures including suppliers, retailers and wholesalers both at home and on the international market. With the move to venture in to the international market especially with its line of operation, it is highly expected that the departmental store has critically examined the available market share on the international market. This I believe has been assessed in line with the existing level of rivalry. The international market is very competitive and the need to critically examine the available opportunities and challenges needs not to be ignored (Hall 2009). Reports from the departmental store indicated that the firm heavily bets on not limiting its expansion to the home market alone but also further to the international arena. The bet to venture in to the international market as indicated by the report from the departmental store’s spokesman would not be cheap and the store is ready to accept partnerships to see the venture come true. Liberty thus plans to greatly transform itself in to a very big luxury retailer both in London and on the international market. According to the same report, the store has been recording tremendous increase in sales over the past few months especially with the coming of the new chief executive officer. The period ended in June for instance was marked with a total increase in sales that amounted in to a whole twenty three percent. According to the chairman of the departmental store, the progress in to the international market is an aspect that has been planed for over along period of time and incoming investors are highly welcome to share in the strong believe in the store both at present and in the near future (Hall 2009). Though it may be hard to be certainly assured of a better future, the chairman believes that with what the departmental store has achieved, a positive future truly exists for Liberty. The sales on the home market according to the chairman are such that ladies wear is highly competitive and the store has put in place ideal measures to combat the stiff competition now and in the near future. Customer satisfaction and subsequent retention is an aspect that is highly credited by the chairman of the store. With regard to the stiff competition, there has been a drop in the sale of ladies wear but the chairman indicates that appropriate measures are already in place to correct the situation. The same sales were very positive for the gents wear recording a whole twenty eight percent increase. Accessories for the same period of time as reported by the chairman of the store enjoyed a significant increase in sales. Pretax losses would however not be avoided and the store is said to have recorded an increase in such losses with regard to the previous financial period. According to the chairman, the type of retailing being fostered at this departmental store is the type that continues to reflect on the kind of polarization that always existed in the store since its inception. It is indeed true that the Liberty store strongly holds to its fundamental roots from its founder and the type of retailing is all geared at fostering the expansion of the venture. The focus on particular market opportunities is the aspect off successful marketing that the Liberty departmental store highly considers with its move to expand its operations. At the liberty departmental store it emerges that a lot of focus is centered on the marketability of luxurious items. This is an aspect that greatly attracts customers that are out to get quality in an ideal retail type of environment. With the move to expand its operations, the Liberty departmental store plans to introduce a wide range of prestigious liberty silks in its fabrics business operations. This is an operation that the Liberty departmental store has been known for throughout its period of operation. Revenue collection from this operation has always been high. This according to a financial briefing from the store has been maintained irrespective of the poor rating of the yen against the sterling pound. The strong reintroduction of the prestigious Liberty silks greatly contributed to the existing profitability. Liberty has always been dedicated to the positive transformation and the appointment of Geoffroy de La Bourdonnaye as chief executive officer is strongly associated to its positive transformation dream. Geoffroy was formerly the president of the Christian Lacroix a big subsidiary firm of the LVMH. His appointment according to the chairman has already had a very positive impact on the operations of the store. The senior management at the Liberty departmental store is evidently being restructured with the coming of this new chief executive officer. The store might have greatly acknowledged his expertise and thus highly expects him to foster transformation in its operations. This is an element that is thought to be a driving force towards the move to expand its operations both at home and on the international market. While responding to the report, the chairman strongly denied allegations that the store plans to sale the business. The Liberty departmental store has for ages been synonymous with its prestigious and luxurious collections and great design. The founder’s intuitive vision led him to travel around the globe in pursuit of items that would greatly inspire and at the same time excite the clients. The founder’s legacy is heavily depicted in the entire operations of this store. The legacy truly stands for integrity and the top management has been very committed towards this legacy. This has been translated in to value, beauty and quality. This is the type of vision with which the store currently operates with in its very elegant Tudor building. The founder of this prestigious store Arthur Lasenby Liberty was born in 1843 in Chesham. He was first employed in the legendary Messrs and Rogers in the year 1862. This is thought to have been the same year in which the International exhibition came to London within Kensington. Under the great inspiration of his service, Mr. Liberty is said to have made a decision to start his own business venture ten years later. On taking the loan from a man who later became his beloved father in law. Mr. Liberty was able to lease a section of a building on Regent Street. At the time of the launch, the store only stocked a variety of ornaments and a number of fabrics alongside other prestigious objects derived from both the East and parts of Japan. Mr. Liberty was able to finance his loan within the first eighteen months of the operation of his business store. With what he had made at the moment, he acquired yet another section of the shop. Expansion seems to be his legacy and the current management is justified to foster it by venturing in to other markets. Liberty himself is seen to have greatly expanded his initial business operation through acquisition of a number of adjacent properties. With the high increase in the demand for prestigious carpets and furniture, Mr. Liberty is thought to have acquired the entire 142-144 regent Street in the year 1885. What seems to be happening now is only but a translation of the transformation legacy that the founder of the store might have left behind. The Liberty departmental store is a leading store in the United Kingdom with operations only in London at the moment. However, even with its single point of operation, the clients that flock this store are drawn from the entire United Kingdom with lots of other clients emerging from the international market. The move to expand its operations might be geared at enhancing the service provision by making it easy for its clients to shop at many points both at home and on the international market. The ease of travel could be an aspect that is being considered by the management on the behalf of the many customers. If indeed the store manages to successful plunge in to several regions both at home and beyond, the market share is probably bound to increase and so would be the profitability. A number of investors are currently eying the opportunity and when the time is due, the operations would be greatly fostered since they will be enough capital and share holding. Reference Hall, J 2009, Liberty Undergoes Strategic Review to Attract Partners for Global Expansion, The Telegraph, 26th July. Viewed on 8th Nov 2009 from http://www.telegraph.co.uk/finance/ Read More