Chapter 20 Integrating and Controlling the Retail Strategy

Chapter 20 Integrating and Controlling the Retail Strategy RETAIL MANAGEMENT: A STRATEGIC APPROACH 11 th Edition BERMAN EVANS

Chapter Objectives þ To demonstrate the importance of integrating a retail strategy þ 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 þ To show industry and company data can be used in strategy planning and analysis (benchmarking and gap analysis) þ To show the value of a retail audit

Planning Procedures Outline the firm’s overall direction and goals Combine top-down plans and bottomup/horizontal plans Enact specific plans, including checkpoints and dates

Figure 20 -3: The Integrated Strategy of Coach

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

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?

Figure 20 -3: Opportunity Analysis with the SBA

Table 20 -1: Sales Opportunity Analysis

Table 20 -2: Benchmarking Through Operating Statements

Measuring Service Retailing ♦ ♦ ♦ Reliability Responsiveness Assurance Empathy Tangibles

Figure 20 -4: Utilizing Gap Analysis

Minimizing Gaps Customer insight Customer profiling Customer life cycle Extended business model Relationship program planning and design ü Implementation ü ü ü

Figure 20 -5: The Retail Audit Process

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

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

Obstacles 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.

Figure 20 -7: A Retailing Effectiveness Checklist

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