Department Store Case Study

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It depends on a group of key customers for a significant portion of revenues. A significant adverse change in a customer relationship or in a customer's performance or financial position could harm business and financial condition. While it has long-standing relationships with our wholesale customers, it does not have long-term contracts with them. As a result, purchases generally occur on an order-by-order basis, and the relationship, as well as particular orders, can generally be terminated by either party at any time. If any major customer decreases or ceases its purchases from us, reduces the floor space, assortments, fixtures or advertising for products or changes its manner of doing business with for any reason, such actions could …show more content…
In the United States, chain stores and department stores are the primary distribution channels for our Levi's® and Dockers® products, and the mass channel is the primary distribution channel for Signature by Levi Strauss & Co.™ and Denizen® products. Outside the United States, department stores and independent Jeanswear retailers have traditionally been our primary distribution channels. It may be unable to maintain or increase sales of its products through these distribution channels for several reasons, including the …show more content…
The performance and financial condition of a supplier may cause to alter business terms or to cease doing business with a particular supplier, or change sourcing practices generally, which could in turn adversely affect our own business and financial condition. Our dependence on contract manufacturing could subject us to difficulty in obtaining timely delivery of products of acceptable quality. A contractor's failure to ship products to us in a timely manner or to meet our quality standards, or interference with our ability to receive shipments due to factors such as port or transportation conditions, could cause us to miss the delivery date requirements of our customers. Failing to make timely deliveries may cause our customers to cancel orders, refuse to accept sell.
Being a global company with significant revenues coming from our Europe and Asia Pacific businesses, which expose it to political and economic risks as well as the impact of foreign currency
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