Strategic Planning in Retail

1. Setting up retail organization

2. Site analysis
3. Store Design/ Layout
4. Cost And Inventory Control
5. Designing an information system
for retail
6. Store Based Strategy Mix
7. Store Branding & Promotion
Setting Up Retail Organization
Steps In Developing Retail Strategy
Establish Feedback Monitor
Progress &
Mission
Control

Develop
Analyze Implemetation
Situation Plan

Obtain &
Identify
Set Objectives Allocate
Options
Resources
 Steps In Developing Retail Strategy

1. Mission : Statement for Long – term Purpose of

the Organization
Need to Provide A clear Sense of Direction for
the Organization
 American Express: We work hard every day to make American Express the
world's most respected service brand.“
 We strive to be the global leader in the sporting goods industry with brands
built on a passion for sports and a sporting lifestyle-Adidas
 We seek to be Earth's most customer-centric company for four primary
customer sets: consumers, sellers, enterprises, and content creators. Amazon
 Steps In Developing Retail Strategy

2. Situation Analysis
a. PEST Analysis

b. Porters Five Forces Model

 Steps In Developing Retail Strategy
3. Identify Options / Strategic Alternatives

a. Market Penetration : Increase the basket size,

Increase the customers, increase the purchase
frequency
b. Market Development : New market segments,
new customer base
c. Retail Format Development : new format to
existing customers
d. Diversification : New retail Formats
 Steps In Developing Retail Strategy
4. Set Objectives:
i. Sales volume target
ii. Market share targets
iii. Retail expansion targets
iv. Liquidity
5. Obtain & Allocate Resources Needed
i. Financial
ii. Manpower
6. Develop Strategic Plans
7. Implement the Strategy Evaluate & Control
 Types of Retail Locations
• Freestanding/ isolated store
• Part of business district
• Part of shopping center
Factors Influencing Store Location
Factors that a retailer needs to take into account
while choosing a location for a retail store
1.Identify market

2. Determine market potential

3. Identify attractive sites

4. Select best site

 Factors Influencing store location
1. Market identification
2. Determine the market potential: Demographic
features of the population, characteristics of
the household, competition & compatibility ,
laws and regulations , trade and analysis
3. Identify alternate sites and select the site:
traffic, accessibility of market, amenities
available, to buy or to lease, the product mix
offered
STORE DESIGN & LAYOUT