10:Identify and explain two factors TXE should consider when deciding which shops to close?[6]

[Dania]

TXE is a large food retailer. The Finance Director is worried as last year profit fell by 10%. ‘I blame competition and increased taxes. We have spent more on sales promotions, but these have not been successful. We have to find ways to increase profits.’TXE has 200 shops and plans to close 50 to lower costs. TXE may decide to sell a wider range of products, such as clothes, to help increase its profits.

10:Identify and explain two factors TXE should consider when deciding which shops to close?[6]

Possible KN Points:
>Rent / rates.
>Number/type of shops in area.
>Space / access.
>Level of demand/ where there customers are/ value of sales.
>Local labour costs.
>Profitability of each shop.