STRATEGIC RETAIL

MANAGEMENT
STRATEGIC RETAIL MANAGEMENT

 What is retail management and retail strategy

 Steps in strategic planning

 Creating the desired market position

Strategic Retail Management
 Is both an art and science
 Requires both creative and analytical skills
 Involves an overall framework of action

Is intended to help:
 The retail manager step back and take a fresh
look at the business
 Create the desired position or image in the
marketplace
 STRATEGIC RETAIL MANAGEMENT
PROCESS INVOLVES
 Planning the organization
 Implementing strategic and tactical
decisions at all organizational levels
 Controlling all the firm’s activities.

Retailing is such a nitty-gritty

business it is often difficult
to“see the forest for the trees”
Retail Strategy: is an overall plan to
gain a competitive advantage
through the use of a distinctive
retail mix to capture the patronage
of one or more target markets
STEPS IN STRATEGIC PLANNING
1.Develop Mission Statement
2.Establish Objectives
3.Conduct A Situation Analysis
4.Select Markets In Which To Compete
5.Obtain Resources Needed To Compete
6.Develop A Positioning Strategy
7.Implement Strategy
8.Evaluate Results
THE MISSION STATEMENT
• Defines the retail concept
• Is a generalized, yet meaningful expression of
the firms future direction
• Often reflects the organization’s values or
corporate culture

It should:
 Identify both the business and the customer
domains
 Identify the organization’s responsibilities to
stakeholders
 Provide a general blueprint for accomplishing
the mission
MISSION STATEMENT
SOBEYS INC.
“We are and will continue to be a leading
progressive food retailer providing
excellent service, quality and value to our
customers through dedicated people
while aggressively developing new
markets.”
ORGANIZATIONAL OBJECTIVES
 Market Objectives
 are aimed at securing customer patronage
and achieving competitive positions within the
general marketplace
 Financial Objectives
 are directed at ensuring that the retail
organization operates profitably and
productively
 Social Objectives
 are concerned with identifying the firm’s
relationships with and reactions to social,
cultural, and ethical environments that are
both internal and external to the firm’s
operations
 MARKET OBJECTIVES

 Customer Patronage
 Sales Objectives
 Customer Traffic
 Customer Loyalty
MARKET OBJECTIVES

 Competitive Position
 Market Share
 Retail Image
 Vendor Relations
FINANCIAL OBJECTIVES

 Profitability
 Targeted Returns
 Earning Per Share
 Stockholder Dividends
FINANCIAL OBJECTIVES

 Productivity
 Labor
 Space
 Merchandise
SOCIETAL OBJECTIVES

 Social Responsibility

 Corporate Values
CONDUCT A SITUATION
ANALYSIS
 Complete a Retail Audit

 Determine retail strengths and weakness

 Evaluate market opportunities and threats

 Conduct a Competitive Analysis

DEVELOP A POSITIONING STRATEGY

Positioning:
 Refers to the position the company occupies
in the market relative to the competition
 Explains how the company will differentiate
itself from other organizations competing for
the same customers
 Gives the retailer’s reason for being
 Involves selling the store; not the
merchandise
 Gives the customer a reason to shop at your
store rather than the competitor’s store
HOW DO YOU CREATE THE DESIRED
POSITION IN THE MARKET

 Create
an environment conducive to
exchange

 Matchyour retail mix to consumer

expectations

 Perceptual mapping can be useful to

identify market gaps
 What does the retailer provide in the
exchange?
 products / services
 transfer of ownership
 temporary use of store facilities
 point of purchase information
 image / prestige
 credit
 delivery
 other
What does the customer provide in
the exchange?
 money
 time and effort
 word of mouth advertising
 hope of repeat patronage

 Retailer must meet or exceed customer

expectations!
 Retailer must put together the retail program
that the customer wants, that is different from
the competition!!
RETAIL IMPLEMENTATION
INVOLVES….
 People
 Money
 Time
RETAIL CONTROL

 Check to see that objectives are

achieved
 Evaluate strategies and tactics to
see if they are still relevant and
effective
 Set new performance targets and
plans as required