A chain store (store A) has sales of $1,750 per square foot per year, more than twice that of a competitor (store B). Store A: gross margin is 25%, and store B is 35%.
Store A carries around 4,000 SKUs (products), with 80% of them bearing their own brand,
Store B carries more than 20,000 SKUs, with 15% of them bearing their brand.
Store A purchases directly from the manufacturers, which then ship their products straight to their distribution centers.
What is the strategic position targeted by store A? What does that require from them in terms of operational competencies and what process choices allow them to support this position?