Tillys SWOT and PESTLE Analysis

Strength

1. Strategically located retail stores across America: Tillys opened its first store in Irvine, California in 1982 and since then, they have expanded into 33 states and 82 markets, operating a total of 239 stores as of 2020. They follow the strategy of clustering stores in markets where sales and footfalls are high. Clustering stores allows them to not only enhance brand awareness but also cater to a large volume of consumers with ease and without constantly refilling from inventories. Their stores follow multiple formats and are located in indoor malls, lifestyle and outlet centers, street-front locations and so on. Tillys also follows the practice of frequently reinvesting in their existing stores by remodeling and refurnishing them to improve customer experience and increase store sales. In recent years, they have remodeled almost 90% of their existing stores.

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Weakness

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Opportunity

1. Improving digital platform to capture e-commerce market: The pandemic forced people to stay at home and order online. It is expected that demand for e-commerce will only continue to rise and hence it is important for companies to improve their digital platform in order to retain their existing consumer base and also attract new customers. Tillys plans to improve customer experience by improving their online platform using latest technology and processes. Expanding their digital outreach will also help in getting younger and tech-savvy customers. Improved digital platform will make it easier to offer consumers personalized discounts and drive customer loyalty. An AI measured, analytics-based approach will help them understand what consumers are looking for and expand their product offerings accordingly. Rolling out curbside pickup options and same-say home delivery features will also attract consumers and improve their experience.

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Threat

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Political

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Economic

1. Weak economy leads to lower consumer discretionary spending: The COVID-19 pandemic led to huge economic repercussions with millions of people around the world losing their jobs and many others living in uncertainty amidst an unprecedented health crisis. Loss of jobs and overall weak economy means that consumers have less money in their hands to spend on discretionary products. Certain economic conditions or events, such as a contraction in the financial markets; high rates of inflation, high unemployment levels, etc, decrease consumer disposable income. Moreover, unavailability of consumer credit, higher consumer debt levels, higher tax rates, higher interest rates, higher fuel costs, also lead to slow consumer spending. Reduced consumer spending not only reducing demand for products but also requires increased selling and promotional expenses.

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Social

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Technological

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Legal

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Environmental

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