Zoots case analysis

The company has raised approximately $20 million in capital through private individuals and banks and $38 million in institutional financing to finance its rapid growth and expansion.

The company serves 50,000 customers a week through about 45 dry-cleaning outlets and 100 home delivery routes in Connecticut, Massachusetts, New Hampshire, and Virginia (www.zoots.com).With convenient store locations and pick-up and delivery service, ZOOTS is dedicated to making it easy to get quality dry cleaning around costumers’ busy schedules. In 2002 ZOOTS won 16 Readers Choice Awards for Best Dry Cleaner.

There will are always times in the history of any company when they will have lost their inherent public appeal, as well as the ability to pull themselves out of floundering sales and market plunges.

Key to ZOOTS’s success will be the efficiency of the facilities where the dry cleaning is actually done rather then clean garments in each store. ZOOTS can lower cleaning costs by shipping clothes to its own high-volume centers. They have to open more centralized facilities.

Web customers are also more loyal and bigger spenders. Online customers return nearly twice as often as those who visit the store (www.zoots.com). And the online business works hand in hand with another ZOOTS strategy: home delivery at no additional charge. In its first year, only 10% of customers who requested home delivery did so online. That number is now approaching 50% (www.zoots.com).

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