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Integrating and Controlling the Retail Strategy

RETAIL MANAGEMENT:A STRATEGICAPPROACH11th Edition11th Edition

BERMAN EVANS

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Chapter Objectives To demonstrate the importance of

integrating a retail strategy To examine four key factors in the

development and enactment of an integrated retail strategy: planning procedures and opportunity analysis, defining productivity, performance measures, and scenario analysis

To show how industry and company data can be used in strategy planning and analysis (benchmarking and gap analysis)

To show the value of a retail audit

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Planning Procedures

Outline the firm’s overall direction and goals

Combine top-down plans and bottom-up/horizontal plans

Enact specific plans, including checkpoints and dates

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Figure 20-3: The Integrated Strategy of Coach

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Performance Measures

Total sales Average sales per

store Sales by goods/

service category Sales per square

foot Gross margins Gross margin

return on investment

Operating income Inventory

turnover Markdown

percentages Employee

turnover Financial ratios Profitability

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American Customer Satisfaction Index (ACSI)American Customer Satisfaction Index (ACSI)

♦ Are customer satisfaction and evaluation of quality improving or declining in the United States?

♦ Are these attitudes improving or declining for particular sectors of industry and specific companies?

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Figure 20-3: Opportunity Analysis with the SBA

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Table 20-1: Sales Opportunity Analysis

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Table 20-2: Benchmarking Through Operating Statements

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Measuring Service RetailingMeasuring Service Retailing

♦ Reliability♦ Responsiveness♦ Assurance♦ Empathy♦ Tangibles

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Figure 20-4: Utilizing Gap Analysis

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Minimizing GapsMinimizing Gaps

Customer insight Customer profiling Customer life cycle Extended business model Relationship program planning

and design Implementation

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Figure 20-5: The Retail

Audit Process

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Figure 20-7a: Management Audit Form for Small Retailers

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Figure 20-7b: Management Audit Form for Small Retailers

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Obstacles to Doing a Retail AuditObstacles to Doing a Retail Audit

An audit may be costly. It may be time-consuming. Performance measures may be

inaccurate. Employees may feel threatened and

may not cooperate as much as desired. Incorrect data may be collected. Management may not be responsive to

the findings.

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Figure 20-7: A Retailing Effectiveness Checklist

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