“Filene’s Basement” Harvard Business School Synopsis Filene’s Basement is an off-price apparel specialty chain with over 50 stores in the northeastern quarter of the United States. Originating literally as the basement of the Filene’s Department Store in Boston, the wildly successful concept was being replicated rapidly after a management buyout from its Federated Stores parent. The case looks primarily at Filene’s Basement’s store siting procedure and, in particular, at an early 1993decision about two candidate sites in Chicago. The Basement already had 4 stores in the Chicago area; should they add two more? The case provides some demographic and financial data to help arrive at a decision. Preparation Questions 1. How do you appraise Filene’s Basement’s expansion strategy? Comment on the concept, the choice of regions for expansion, and the number of stores. What should be their strategy going forward? 2. How should Filene’s Basement select sites for future outlets? Critique the current process. 3. Suggest a methodology for preparing a sales forecast for the two prospective stores at Naperville and Mount Prospect. 4. Should either or both be opened?