PPR, the French retail and luxury goods group, announced plans to sell its Printemps department store chain. Through re-engineering, the company hopes to increase its profit margins, have the lowest costs in the industry, and improve inventory turnover. What sort of advantage will PPR create by restructuring and selling off the department chain that does not complement its luxury product lines?

Question

Quizplus · Accepted Answer

By restructuring and selling off the department store chain, PPR is aiming to increase their profit margins and have the lowest costs in the industry, giving them a cost competitive advantage. This will help them focus on their luxury goods business, which is their core area of expertise.

PPR, the French Retail and Luxury Goods Group, Announced Plans