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Scenario 4-2 Stronger Income Growth Among Upscale Shoppers Is Fueling Sales at Sales

question 28

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Scenario 4-2
Stronger income growth among upscale shoppers is fueling sales at the high end, while slow job growth and higher energy costs are prompting more moderate-income consumers to search of bigger bargains. No retail sector is more squeezed from both sides than the department-store chains, most of which continue to lose sales to other retailers. That has opened the door for financier Edward S. Lampert, 42, whose plans to merge Kmart Holdings and Sears could result in Sears vacating 200 to 300 of its 871 mall-based stores Overriding all this jostling is the biggest question in retail: whether the planned merger of Kmart and Sears will work. The deal would accelerate Sears' strategy to move off the mall by taking some Kmart sites. The retailers believe, too, that they would benefit from cross-selling some of their proprietary brands, like Kenmore appliances. (Robert Berner, "Retail's Unhappy Middle Ground," Business Week Online, December 24, 2004.)
-(Scenario 4-2) Sears promotes its Kenmore line with the phrase "The innovative side of Sears." This phrase should be a clear reflection of its

Definitions:

Mississippi

A state in the southern United States, known for its rich cultural heritage, history, and as a significant site of the American Civil Rights Movement.

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A region of the United States generally considered to include the vast geographic area west of the Mississippi River, characterized by its history of exploration, settlement, and cultural development.

World War II

A worldwide war that spanned from 1939 to 1945, engaging the majority of the planet's countries, with every major power eventually aligning into two adversarial military blocs: the Allies versus the Axis.

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Characterized by the growth of cities and the development of manufacturing and services, leading to a shift from agricultural-based economies.