[1] Assess Shop Thursdays internal strengths and weaknesses.

[2] Reflecting on your own experiences (& perhaps also observations you have had) during the Covid-19 pandemic, evaluate the external environment that Shop Thursdays is operating in (womenswear retail industry; impact of influencer marketing).

[3] Tabulate or discuss, qualitatively, the pros and cons of the two alternative strategies: maintaining the Exchange Tower shopping location VS. closing out that store and focusing on on-line shopping.

[4.a] What are the two types of shoppers identified for the Exchange Tower location? For each type of customers, estimate Unit Contribution Margin [= ($ Selling Price - $ Variable Cost) / $ Selling Price].

[4.b] What are the two types of customers identified for the on-line channel? For each type of shoppers, estimate Unit Contribution Margin (formula same as above).

[5.a] Calculate the total $ annual fixed costs of operating the Exchange Tower location.

[5.b] The case has stated that, for the second strategy, 15% the Exchange Towers annual recurring cash costs would be used to finance partnerships with Instagram micro-influencers. Calculate $ Influencer Marketing Budget = (Annual Recurring Cash Cost * 15%).

[5.c] Calculate $ Influencer Marketing Break-even Sales (= $ Influencer Marketing budget / On-line Unit Contribution Margin).

[6.a] The case provided estimates, for the Exchange Tower location, on how many days the store would open during fiscal year 2021 as well as on the number of purchases the customers would make in-store. Based on these pieces of information, estimate projected $ annual sales for the physical store location.

[6.b] You have by now already calculated the Exchange Tower locations annual fixed costs, as well as variable cost unit contributions. Based on in-store purchase estimates provided in the case (number of days open, daily purchases), as well as projected $ annual sales in [6.a], estimate projected $ profitability for the Exchange Tower store location.

[7] It would also be nice if you could conduct some similar analyses, with respect to projected $ annual sales & projected $ profitability, for the on-line channel including current sales and influencer sales.