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Sephora General Merchandise Sephora stores is a retailer of general merchandise based in Birmingham, Alabama. Sephora has a sizable market share in the off-price market,

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Sephora General Merchandise Sephora stores is a retailer of general merchandise based in Birmingham, Alabama. Sephora has a sizable market share in the off-price market, with 375 stores and five distribution centers (DCs) located in the southeast United States. Sephora carries both everyday items and "one-time" purchase specials that it advertises to consumers at discounted prices. Sephora also sells food with expiration dates, but none of them require refrigeration. Due to the market's density and the size of its stores, Sephora is able to ship full truckloads (TL) of its products daily from its DCs to its stores. Sephora does not currently have an online presence. With a strong market position in the southeast, Sephora has chosen to expand through acquisitions into the northeast and midwest. It acquired Menards, a medium-sized retailer in New Jersey that specializes in general merchandise as well as perishable and non-perishable food items. It makes use of both direct TL shipments to larger stores located nearer to the DCs and pool distribution to smaller, more remote stores. Menards has an online store where consumers can order groceries and pick them up the same day. Sephora also acquired the Indiana-based Wharton Stores. Wharton is an outdoor recreational sports retailer with 50 locations and one in the District of Columbia. It is an omni-channel retailer that ships both in-store and online orders from a single distribution center. Wharton makes store deliveries via LTL2 carriers and internet orders via small package carriers. Sephora's strategy is to expand these acquired businesses regionally and then nationally under the Sephora name. Additionally, it has chosen to invest heavily in its online presence in order to become an omni-channel retailer. QUESTIONS 1. Sephora acquired two retailers in order to expand its market reach. However, Sephora now offers distinct product lines (e.g., general merchandise, perishable, to name a few). What would you advise Sephora's management if they were to pursue a single brand, omni-channel strategy? Explain. 2. What type(s) of order fulfillment network(s) would Sephora benefit from? Explain. 3. What are the challenges and opportunities for Sephora in offering all products to all consumers through a single Web site? Is this strategy compatible with the current DC network? Explain

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