The company will have to invest in restructuring the operations in the company, revaluate the role of the different functions and eliminate redundant processes. This will reduce overheads for the companies.
Invest in Technology
The company should invest in supply chain management technology for the distribution of its products. Use of JIT distribution using RFIDs can be implemented for all its stores, which would be supported by the restructured functions of the business.
Change the Business Philosophy and its Strategy
The Company can also change its philosophy of doing business, and take into account the changing needs and requirements of the customers. The aspects of aesthetics, quality control as well as improvement of the stores in terms of looks, cleanliness and layout could be focused upon. Moreover the company could also change its 8 percent annual floor expansion with increasing the efficiency and profitability of its already existing stores.