Editing Retail (section)

==Retail strategy==
{{See also|Strategic planning}}

The distinction between "strategic" and "managerial" decision-making is commonly used to distinguish "two phases having different goals and based on different conceptual tools. Strategic planning concerns the choice of policies aiming at improving the competitive position of the firm, taking account of challenges and opportunities proposed by the competitive environment. On the other hand, managerial decision-making is focused on the implementation of specific targets."<ref>{{Cite journal |last1=Volpato |first1=Giuseppe |last2=Stocchetti |first2=Andrea |date=2009 |title=Old and new approaches to marketing. The quest of their epistemological roots |url=https://mpra.ub.uni-muenchen.de/30841/ |url-status=live |journal=The Proceedings of 10th International Conference Marketing Trends |issue=30841 |page=34 |archive-url=https://web.archive.org/web/20170203170330/https://mpra.ub.uni-muenchen.de/30841/ |archive-date=2017-02-03 |via=Munich Personal RePEc Archive}}</ref>

In retailing, the strategic plan is designed to set out the [[Vision statement|vision]] and provide guidance for retail decision-makers and provide an outline of how the product and service mix will optimize customer satisfaction. As part of the strategic planning process, it is customary for strategic planners to carry out a detailed environmental scan which seeks to identify trends and opportunities in the competitive environment, market environment, economic environment and statutory-political environment. The retail strategy is normally devised or reviewed every three to five years by the chief executive officer. The profit margins of retailers depend largely on their ability to achieve market competitive transaction costs.

The strategic [[financial analysis|retail analysis]] typically includes following elements:<ref>Lambda, A.J., ''The Art Of Retailing'', McGraw-Hill, (2003), 2008, pp. 315–26</ref>

[[File:Lanvin Monte Carlo 2004.jpg|thumb|The retailer also considers the overall strategic position and retail image.]]

* [[Market analysis]] – Market size, stage of market, market competitiveness, market attractiveness, market trends
* Customer analysis – [[Market segmentation]], demographic, geographic, and psychographic profile, values and attitudes, shopping habits, brand preferences, analysis of needs and wants, and media habits
* Internal analysis – Other capacities including human resource capability, technological capability, financial capability, ability to generate [[economies of scale|scale economies]] or [[economies of scope]], trade relations, reputation, positioning, and past performance
* Competition analysis – Availability of substitutes, competitor's strengths and weaknesses, perceptual mapping, competitive trends
* Review of product mix – :: Sales per square foot, stock-turnover rates, profitability per product line
* Review of distribution channels – Lead-times between placing order and delivery, cost of distribution, cost efficiency of intermediaries
* Evaluation of the economics of the strategy – Cost-benefit analysis of planned activities

At the conclusion of the retail analysis, retail marketers should have a clear idea of which groups of customers are to be the target of marketing activities. Not all elements are, however, equal, often with demographics, shopping motivations, and spending directing consumer activities.<ref>{{Cite journal|last1=Parker|first1=Christopher J.|last2=Wenyu|first2=Lu|date=13 May 2019|title=What influences Chinese fashion retail? Shopping motivations, demographics and spending|journal=Journal of Fashion Marketing and Management|language=en|volume=23|issue=2|pages=158–175|doi=10.1108/JFMM-09-2017-0093|s2cid=170031856|issn=1361-2026|url=https://figshare.com/articles/What_influences_Chinese_fashion_retail_Shopping_motivations_demographics_and_spending/9348191|access-date=3 September 2020|archive-date=28 October 2020|archive-url=https://web.archive.org/web/20201028032125/https://figshare.com/articles/What_influences_Chinese_fashion_retail_Shopping_motivations_demographics_and_spending/9348191|url-status=live}}</ref> Retail research studies suggest that there is a strong relationship between a store's positioning and the socio-economic status of customers.<ref>Fill,  C., ''Marketing Communications: Framework, Theories and Application'', London, Prentice Hall, 1995, p. 70</ref> In addition, the retail strategy, including service quality, has a significant and positive association with customer loyalty.<ref>Yu-Jia, H. (2012). "The Moderating Effect of Brand Equity and the Mediating Effect of Marketing Mix Strategy On the Relationship Between Service Quality and Customer Loyalty
". ''International Journal of Organizational Innovation'', 155–62.</ref> A marketing strategy effectively outlines all key aspects of firms' targeted audience, demographics, preferences. In a highly competitive market, the retail strategy sets up long-term sustainability. It focuses on customer relationships, stressing the importance of added value, customer satisfaction and highlights how the store's market positioning appeals to targeted groups of customers.<ref>Morschett, D., Swoboda, B. and Schramm, H., "Competitive Strategies in Retailing: An Investigation of the Applicability of Porter's Framework for Food Retailers ''Journal of Retailing and Consumer Services'', Vol. 13, 2006, pp. 275–87</ref>