Explain the dimensions of the retail positioning matrix, and give an example of a store that would be located in each quadrant of the matrix.

The retail positioning matrix is a matrix developed by the MAC Group, Inc., a management consulting firm. This matrix positions retail outlets on two dimensions: breadth of product line and value added. Breadth of product line is the range of products sold through each outlet. Value added includes elements such as location, product reliability, or prestige. There are four possible positions in the retail positioning matrix. (1) Bloomingdale's has high value added and a broad product line. Retailers in this quadrant pay great attention to store design and product lines. Merchandise often has a high margin of profit and is of high quality. The stores in this position typically provide high levels of service.
(2) Walmart has low value added and a broad product line. Retailers in this position typically trade a lower price for increased volume in sales, focus on price with low service levels, and create an image of being a place for bargains.
(3) Tiffany & Co. has high value added and a narrow line. Retailers of this type typically sell a very restricted range of products that are high in status and quality. Customers are also provided with high levels of service.
(4) DSW shoe store has low value added and a narrow product line. Economies of scale are achieved through centralized advertising, merchandising, buying, and distribution. Stores are usually the same in design, layout, and merchandise; hence, they are often referred to as "cookie-cutter" stores. See Figure 16-8. [Students may offer other examples.]