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Product cover image for Shop Thursdays: Post COVID-19 Strategy

Shop Thursdays: Post COVID-19 Strategy

Ian Dunn; Holli Greenwald

Product #:9B21B008
Supplier:Ivey
Discipline:Accounting, Communications
Setting:Canada, 2020
Details:Case (PDF) • 7 pages • 2021-04-19

Subjects:

Social mediaWeb-based technologiesFinance and investingOrganizational cultureAccountingOrganizational behavior

Industries:

Goods, trade, and consumer services

Geography:

North AmericaCanada
Your Price:$10.54

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In mid-2020, the co-founder of online and brick-and-mortar womenswear boutique Shop Thursdays in Toronto, was considering how to best position her business for growth when the COVID-19 global pandemic was resolved. The boutique, which had two brick-and-mortar locations in addition to its online presence, provided its customers with the latest and trendiest styles. When the COVID-19 pandemic forced all non-essential business to close their doors, the co-founder pivoted to sell all merchandise through the shop’s online platform. The success realized during this time led her to wonder how to continue to boost this segment of the business. The co-founder had tried influencer marketing in the past and was aware of its potential to grow online sales; however, to devote her time and resources to influencer marketing, she would need to close the store’s second location. Given the uncertainty surrounding consumer shopping behaviour after COVID-19 was resolved, which strategy would be beneficial moving forward?

Learning Objectives

This case is best taught in an undergraduate introductory managerial accounting course. Students should use cost behaviour, contribution analysis, and break-even analysis as financial tools to quantitatively justify their decision. After working through the case and assignment questions, students will be able to do the following:
  • Perform a corporate capabilities analysis.
  • Perform an industry analysis.
  • Identify the costs relevant to the decision and classify them as fixed costs or variable costs.
  • Calculate unit contribution and contribution-margin ratios for the different order types made online and at the physical store.
  • Perform a break-even analysis and interpret its meaning using relevant parameters.
  • Project the profitability of each distribution channel.
  • Perform a sensitivity analysis on the expected profitability level for each distribution channel.
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Case Study: Shop Thursdays: Post COVID-19 Strategy (English version) | Ivey Publishing