Question

suggest steps the company might take to reduce its losses and establish profitability,

the cenario:

Roots Corporation reported quarterly loss of $5.6 million in first quarter of 2018. Comparing to last year, the net loss increased from $5.1 to $5.6 million. The clothing retailer applies expansion strategy in US and is opening its first “brand activation centre” in Boston that will allow shoppers to familiarize themselves with the Canadian brand. It also plans to open 10 to 14 stores in the US by the end of 2019. Sales from corporate retail stores and e-commerce channels accounted for $44.2 million, up nine per cent from $40.5 million in last year’s first quarter. Jim Gabel, president and CEO of Roots, explained, “while sales in the quarter were good, we believe they would have been even stronger had we not faced a major ice storm across approximately 80 per cent of our store network in mid-April.” Roots remains confident about achieving its full-year target, between $35 million and $40 million of adjusted net income and between $410 million and $450 million of sales for fiscal 2019.

Reference:

Roots reports quarterly loss despite improvement in sales. (June 13, 2018). Retrieved from:https://www.thestar.com/business/2018/06/13/roots-reports-quarterly-loss-despite-improvement-in-sales.html

Answer 1

Answer)

Here,the company must try to increase sales for reporting reducing loss and increasing profits. The reason is in general,when weake a sale the all product covers variable costs but not fixed costs leading to losses.Here,to make people familiar with Canadian brand they must try to attract people in following way:

1)The common thing is to give discounts.

2)Next giving premium like buy one get two free etc.

3)Next discounts for packages like one shirt may be $50 but buying 3 will be for $120.

4)Now trend is giving coupons online for discount.

5)Advertising for making people are of our site.

6)Offering cash backs in such a way that could be encaged only with us which is much better than other discounting as people need to visit us again for availing cash back.

7) Offering surprise gifts for customers.

8) Offering membership cards and reward points on every bill with membership cards and offering garments on that reward points .