RETAIL MARKET STRATEGY

When retailers understand customer needs, they can create niche in marketplace by building a retail strategy

Effective strategies consider the target market, set formats to reach target market, and plan growth of competitive advantage over time

Retailers with a strong, proven strategy and stick to it do better than those who don’t

RETAIL MARKET STRATEGY

The strategic retail planning process gives steps retailers follow to meet strategic goals:

1. Define Mission: describe stores objectives and activities

2. Situational Audit: also called a SWOT assessment, it looks at Strengths, Weaknesses, Opportunities, and Threats in the retail environment

RETAIL MARKET STRATEGY

3. Identify Opportunities: based on SWOT assessment, identify opportunities to increase sales

4. Evaluate Alternatives: now that opportunities are identified, decide which best establish a sustainable competitive advantage

5. Establish Specific Objectives and Allocate Resources: set specific goals, define the timeframe to meet these goals, and decide the level of investment dedicated to the goals

RETAIL MARKET STRATEGY

6. Develop Retail Mix to Implement Strategy: decide specifically how each objective will be merchandised, advertised, marketed, etc.

7. Evaluate Performance and Make Adjustments: review each objective, decide if performance met expectations, and course-correct as needed