Scribd
Upload
58 views

Retail Strategy Is The Overall Plan or Framework of Action That Guides A Retailer Process of Strategic Planning

Retail strategic planning involves analyzing the retail environment and consumer needs to develop goals and an overall strategy. It guides daily operations and helps retailers differentiate themselves and coordinate efforts. The process includes assessing strengths/weaknesses, setting objectives, identifying target consumers, and developing specific action plans. It also provides controls to evaluate performance and make adjustments.

Uploaded by

anuradha
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
58 views

Retail Strategy Is The Overall Plan or Framework of Action That Guides A Retailer Process of Strategic Planning

Retail strategic planning involves analyzing the retail environment and consumer needs to develop goals and an overall strategy. It guides daily operations and helps retailers differentiate themselves and coordinate efforts. The process includes assessing strengths/weaknesses, setting objectives, identifying target consumers, and developing specific action plans. It also provides controls to evaluate performance and make adjustments.

Uploaded by

anuradha
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 15

Retail Strategic Planning

 Retail strategy is the overall plan or framework of action that guides


a retailer

 Process of Strategic planning;


• Provides a thorough analysis of the requirements for different types
of retailing
• It outline the goal of retailer
• Helps the firm to differentiate from the competitors and develop an
offering that appeals to group of customer
• Helps in understanding the legal, economic and competitive
environment
• Helps in coordinating the efforts of the retailer
• Assists in anticipating the crisis and to avoid it
Steps in Retail Strategic Planning

Control

Specific activities

Overall strategy

Identification of consumers

Objectives

Situation Analysis
Retail Strategic Planning
 Situation Analysis
• Organizational Mission
• Ownership and management control
• Goods / Service Category

 Objectives
• Sales
• Profits
• Satisfaction
• Image
Retail Strategic Planning
 Identification of Consumers
• Mass Marketing
• Concentrated Marketing
• Differentiated Marketing

 Overall Strategy
• Controllable
• Uncontrollable

 Specific Activities
• Daily and Short term operations
• Responses to environment
Retail Strategic Planning
 Control
• Evaluation
• Adjustment

Opportunities and Threats in Global Retailing


 Opportunities
o Higher growth prospects due to population, high disposable income
o Saturation in domestic market
o Retailer may be able to offer goods/ service / technology not
available in foreign market
o Competition may be less
o Tax or investment advantage in foreign market
o Favourable legal or political environment
Retail Strategic Planning
Threats

o Social and cultural differences


o Management style may not be adaptable
o Restriction by foreign government on some operations
o Income distribution among consumers may be un even in foreign
markets
o Poor infrastructure and communication network
o Institutional formats may vary among countries
Retail Operations Management
 Operations Blueprint
• It lists all operation functions to be performed, their characteristics
and timings
• If a retailer is large or diversified, he may use multiple operation
blue prints
• When a retailer modifies its store formats or operation procedure, it
must also adjust the blue print

 Store Format, Size and Space Allocation

 Personnel Allocation

 Store maintenance, Energy Management and Renovation


Retail Operations Management
 Inventory Management

 Store Security

 Insurance

 Credit Management

 Computerization

 Outsourcing

 Crisis Management
Retail Financial Strategy
 Net Sales : Revenues received by the retailer during a given period
after deducting customer returns, markdown and employee discounts

 Cost of Goods sold: Amount the retailer pay to acquire the


merchandize sold during a given period

 Gross Profit margin: Net Sales – Cost of goods sold

 Operating Expense: Cost of running a retails business

 Net Profit before taxes: The profits earned after all costs have been
deducted
Retail Financial Strategy
 Asset Management
• Assets are any item a retailer owns with a monetary value.
• Liabilities are financial obligations a retailer incurs in operating a
business
• Net Profit Margin = Net Profit / Net Sales

• Asset Turnover = Net Sales / Total assets

• Return on Assets = Net Profit / Net Sales x Net Sales / Total Assets
= Net Profit margin x Asset turnover

•Financial Leverage = Total Assets / Net Worth


Retail Financial Strategy
 Budgeting
• It outlines a planned expenditures for a given time based on expected
performance. Budget is prepared;
• Expenditures are related to performance. It enhances productivity
• Resources are allocated and spending of each department is
coordinated
• Cost standards are set and firm prepares for the future
• Expenditure are monitored during budget cycle

Preliminary budgeting decisions:


• Who shall prepare
• What is the time frame, How often are budgets prepared
• What cost categories are used
• How flexible are budgets
Financial Merchandize Management
Merchandize forecasting and Budgeting

Designating Control units

Sales forecasting

Inventory level planning

Reduction Planning

Planning Purchases

Planning profit margins


Retail Financial Strategy
 Unit Control System
• It deals with the quantity of merchandize in units rather than
currency

• Information contained includes;


 The identification of fast and slow moving items
 Focus on opportunity and problem areas in terms of price, colour,
style, size, etc.
 The computation of the quantity of goods on hand
 Indication of inventory age and determination of time to reorder
 Level of inventory and sales for each item in every store branch
Pricing in Retailing
 Retailer must price goods and services so as to achieve the
profitability for the firm and satisfies the customers

 Pricing strategy must be consistent with the retailers overall image,


sales and profits plans

 Factors affecting the Retail Pricing


• Consumers
• Government
• Manufacturers
• Current and potential competitors
Retail Objective and Pricing
 Overall Objective and pricing
• Market Penetration
• Market Skimming

 Demand oriented pricing


 Cost oriented pricing
 Competition oriented pricing
 One price and flexible pricing
 Leader pricing
 Multiple unit pricing

 Price Adjustments

You might also like