Retail strategy is the overall plan guiding a retail firm. It influences the firm’s business activities & its response to market forces, such as competition & economy. Top management of the organization frames the overall strategy for the retail business. It identifies the Retail Mix for the retailer.
Steps in strategic planning:
- Define the type of business in terms of the goods or services & company’s specific orientation.
- Set long-run & short-run objectives for sales & profit, market share, image etc.
- Determine the customer market to target on the basis of its characteristics (like gender and income level) & needs (like product & brand preferences).
- Devise an overall, long-run plan that gives general direction to the firms & its employees.
- Implement an integrated strategy that combines factors like store location, transportation, product variety, pricing and advertising & display to achieve objectives.
- Regularly evaluate performance & correct weaknesses or problems when observed.
