A retail strategy is the overall plan guiding a retail firm. It influences the firm’s
business activities and its response to market forces, such as competition and the
economy. Any retailer, regardless of size or type, should utilize these six steps in
strategic planning:
1. Define the type of business in terms of the goods or service category and the
company’s specific orientation (such as full service or “no frills”).
2. Set long-run and short-run objectives for sales and profit, market share, image,
and so on.
3. Determine the customer market to target on the basis of its characteristics
(such as gender and income level) and needs (such as product and brand
preferences).
4. Devise an overall, long-run plan that gives general direction to the firm and its
employees.
5. Implement an integrated strategy that combines such factors as store location,
product assortment, pricing, and advertising and displays to achieve objectives.
6. Regularly evaluate performance and correct weaknesses or problems when
observed.