[Virtual Presenter] We are excited to present to you on the case of Store X, Y, and Z Today, we will be discussing the financial performance of these three stores and how they affect the associated costs of sales. Store X has a monthly revenue of $119000, with an average loss of $10000. Store Y has a monthly revenue of $119000, with an average loss of $10000. And Store Z has a monthly revenue of $119000, with an average loss of $10000. These stores showcase a major financial commitment and are crucial to the business. We will also discuss the increase in expenses of Store X.. 

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Crucial part of business as they showcase major financial commitment

Additional infrastructure= additional expenditure

ALL THE OTHER 45 STORES ARE FOLLOWING  THE TRENDS OF STORES 26,27,29,30

Profit of all stores except store#28 =Revenue-Expense =120020.4-89204.08 =30816.32

loss of store#28 =Expense-Revenue =129000-119000 =10000

store#28 expense before loss expense during loss 90000 129000 Other 49 stores expense before loss expense during loss 90000 89204.08

[Audio] We will be discussing how high marketing costs, customer acquisition costs, and customer engagement costs are impacting the profitability of Stores X, Y and Z Firstly, high marketing costs could be leading to an increase in the total operating costs of these stores, reducing their profitability in the short term. Secondly, stores might be spending a higher amount on acquiring customers but as the average cost per customer remains at $34, this could be a challenge for store owners to manage their costs. Thirdly, stores might be spending a higher amount on engaging with customers to increase sales, but as we know the foot traffic remains the same, this could be a challenge for store owners to manage their costs. Now let's discuss repair or refurbishment. Defective or damaged items may need repairs, refurbishment or disposal. Refunding the full purchase price, including taxes and shipping fees, can lead to direct financial loss for the store. Unsellable returned goods can also be a challenge for store owners. The initial cost of acquisition and setting up of new infrastructure will lead to a substantial increase in the store's expenses. Poor communication or inefficiency in coordination with contractors can delay infrastructure projects, resulting in the need for additional repair or investment. If infrastructure is underutilised, the fixed cost associated with maintaining it remains high while the benefit gained is minimal. In conclusion, store owners need to be aware of these challenges and take steps to address them. By managing their costs and investing in their infrastructure, they can improve the profitability of their stores and ensure their long-term success.. 

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CAUSES HOW IT IS AFFECTING COST RECOMMENDATIONS

1.High marketing costs could have driven up the total operating costs, reducing the store’s profitability in the short term. 2.The store might be spending a higher amount on acquisition of customers but as average cost per customer remains static at $34 3. The store might be spending a higher amount on engaging with customers to increase sales but as we know the foot traffic remains the same.

Repair or  Refurbishment: Defective or damaged items may need repairs, refurbishment or disposal. Refund: Store may have to refund the full purchase price, including taxes and shipping fees leading to direct financial loss. Unsellable Returned Goods

1.Capital Expenditure- Initial cost of acquisition and setting up of new infrastructure will lead to substantial increase in store’s expenses. 2.Contractor Relationship - poor communication or inefficiency in coordination with contractors can delay infrastructure projects, resulting in the need of additional repair or investment. 3.Underutilisation- if infrastructure is underused, the fixed cost associated with maintaining it remain high , while the benefit gained is minimal.

1.Digital media over traditional media: traditional media is more expensive whereas digital media is more flexible and offers cost-efficiency. 2.Automation tools like Mailchimp for email marketing and Hootsuite for social media scheduling. 3. Cut underperforming campaigns early.

1.Use AR technology to allow customers to virtually try on products like clothing, accessories, etc. 2. Predictive Analytics to Minimize Return Risks: Use predictive analytics to analyse customer behaviour and identify which products are more likely to be returned.

1.Leasing vs Buying Model-instead of purchasing new infrastructure outright. consider leasing equipment, machinery or even retail space, it will reduce the initial capital expenditure. 2. implementing  performance based contracts. 3. Subleasing or renting out that space to complementary businesses.

THE ANOMALY OF STORE #28

We will be discussing how high marketing costs, customer acquisition costs, and customer engagement costs are impacting the profitability of Stores X, Y and Z 

Firstly, high marketing costs could be leading to an increase in the total operating costs of these stores, reducing their profitability in the short term. 

Secondly, stores might be spending a higher amount on acquiring customers but as the average cost per customer remains at $34, this could be a challenge for store owners to manage their costs. 

Thirdly, stores might be spending a higher amount on engaging with customers to increase sales, but as we know the foot traffic remains the same, this could be a challenge for store owners to manage their costs. 

Now let's discuss repair or refurbishment. Defective or damaged items may need repairs, refurbishment or disposal. Refunding the full purchase price, including taxes and shipping fees, can lead to direct financial loss for the store. 

Unsellable returned goods can also be a challenge for store owners. The initial cost of acquisition and setting up of new infrastructure will lead to a substantial increase in the store's expenses. Poor communication or inefficiency in coordination with contractors can delay infrastructure projects, resulting in the need for additional repair or investment. If infrastructure is underutilised, the fixed cost associated with maintaining it remains high while the benefit gained is minimal. 

In conclusion, store owners need to be aware of these challenges and take steps to address them. By managing their costs and investing in their infrastructure, they can improve the profitability of their stores and ensure their long-term success.