Strategic Planning in

Retailing
 Chapter Objectives
To show the value of
strategic planning for all
types of retailers
To explain the steps in
strategic planning for
retailers: situation analysis,
objectives, identification of
consumers, overall strategy,
specific activities, control,
and feedback
2
Chapter Objectives (cont.)
To examine the individual
elements of a retail strategy
(both controllable and
uncontrollable), and to
present strategic planning as
a series of integrated steps
To demonstrate how a
strategic plan can be prepared

3
 Retail Strategy
The overall plan or framework of
action that guides a retailer
One year in duration
Outlines mission, goals, consumer
market, overall and specific
activities, and control mechanisms

4
Elements of a Retail Strategy

5
 Benefits of Strategic Retail Planning

1. Provides thorough analysis of the requirements for

doing business for different types of retailers
2. Outlines retailer goals
3. Allows retailer to determine how to differentiate
itself from competitors
4. Allows retailer to develop an offering that appeals
to a group of customers
5. Offers an analysis of the legal, economic, and
competitive environment
6. Provides for the coordination of firm’s total efforts
7. Encourages anticipation and avoidance of crises

6
Organizational Mission

Retailer’s commitment
to a type of business
and to a
distinctive role in the marketplace.

7
The Focused Organizational Mission of Frisch’s
Restaurants

8
Ownership and Management Alternatives

Sole proprietorship is an
unincorporated retail firm owned by
one person
A partnership is an unincorporated
retail firm owned by two or more
persons, each with a financial interest
A corporation is a retail firm that is
formally incorporated under state law;
it is a legal entity apart from its
officers
9
 Checklist to
Consider When
Starting a New
Business

10
Checklist for
Purchasing
an Existing
Retail
Business

11
Selected kinds of Retail Goods and Service Establishments

Durable Goods Stores:

Automotive group
Furniture and appliances group
Lumber, building, and hardware group
Jewelry stores
Nondurable Goods Stores:
Apparel group
Food group
General merchandise group
Gasoline service stations

12
Selected kinds of Retail Goods and Service Establishments

Service Establishments (Personal):

Laundry and dry cleaning
Beauty/barber shops
Funeral services
Health-care services

Service Establishments (Amusement):

Movie theaters
Bowling alleys
Dance halls
Golf courses

13
Selected kinds of Retail Goods and Service Establishments

Service Establishments (Repair):

Automobile repair
Car washes
Consumer electronics repair
Appliance repairs

Service Establishments (Hotel):

Hotels
Motels
Trailer parks
Camps

14
Image and Positioning

An image represents
how a given retailer is
perceived
by consumers and others.

15
 Positioning Approaches

Mass merchandising is a positioning

approach whereby retailers offer a
discount or value-oriented image, a
wide or deep merchandise selection,
and large store facilities.
Niche retailing occurs when retailers
identify specific customer segments
and deploy unique strategies to
address the desires of those segments
rather than the mass market.

16
Niche Retailing by Babies “R” Us

17
 Positioning Approaches

Differentiated Marketing is a
positioning approach whereby retailer
aim at two or more distinct consumer
groups, with different retailing
approaches for each group.
e.g. Landmark Groups’ Center point:
Splash, Baby Shop, Shoe Mart, Life
Style
Yum! Brands: KFC, Pizza Hut, Taco Bell

18
 Selected Retail
Positioning Strategies

19
 High Quality

Low Price High Price

competitor
Low Quality
analysis
Strategic Implications of Target Market
Techniques

Retailer’s location
Goods and service mix
Promotion efforts
Price orientation
Strategy

21
 Developing an Overall retail strategy

Controllable Uncontrollable
Variables: Variables:
• Store location • Consumers
• Managing business • Competition
• Merchandise • Technology
Retail
management • Economic
Strategy
and pricing conditions
• Communicating • Seasonality
with customer • Legal restrictions

22
 Additional Concerns for
Global Retailing

In addition to the strategic

planning process:
assess your international
potential
get expert advice and counseling
select your countries
develop, implement, and review
an international retailing strategy

23
 Factors Affecting the Success of a Global
Retailing Strategy

Timing
A balanced international
program
A growing middle class
Matching concept to market
Solo or partnering
Store location and facilities
Product selection
24
Factors to Consider When Engaging in Global Retailing

25