Chapter 20
? To Demonstrate the Importance of Integrating
a Retail Strategy
? To Examine Key Factors in Developing and
Enacting an Integrated Retail Strategy
? To Show How Industry and company Data
Can Be Used in Strategic planning and
Analysis
? To Explain the Principles of Retail Audit
? To Provide Examples of Audit Forms
? Overall Direction and Goals
? Top-Down Plans
? Bottom-Up Plans
? Enactment
? Sales Opportunity Grid
? Integration
– Target Market
– Location(s)
– Operations,Merchandising,Pricing,and
Communications Efforts
? Avoid Unnecessary Expenses
? Avoid Losing Customers
? 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
? Benchmarking
Assurance
Reliability
Empathy
Tangibles
Responsiveness
(1)
Set
Performance
Standards
(4)
Adjust Strategy
& Tactics as
Needed
(2)
Measure
Performance
Other Firms’
Performance
Company’s Own
Performance
(3)
Determine
Gaps in
Performance
Performance
as
Expected
Better-than-
Expected
Performance
Worse-than-
Expected
Performance
IV,
Extended
Business Model
V,
Relationship
Program Planning
& Design
VI,
Implementation
III,
Customer
Life-Cycle Model
II,
Customer
Profiling
I,
Customer
Insight
? Importance of Integrating a Retail Strategy
? Key Factors in Developing and Enacting Integrated
Retail Strategy
– Planning Procedures and Opportunity Analysis
– Defining Productivity
– Performance Measures
– Scenario Analysis
? How Industry and Company Data Can Be Used
? Principles of Retail Audit
– Controlling
– Horizontal vs,Vertical
? Audit Forms
? Forecasts
– Economies of Plenty
– Consumer Up for Grabs
– One Size Doesn’t Fit All
– Communication Dialog
– No One-Trick Ponies
– Virtually Boundless
– Supply and Demand Chains
– High Value Solutions
– Customers,Not Transactions
? 21st Century Global Economy
Questions?
Questions?