20-1 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Integrating and Controlling the Retail Strategy RETAIL MANAGEMENT: A STRATEGIC APPROACH 11th Edition BERMAN EVANS

20-2 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 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

20-3 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 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

20-4 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 20-3: The Integrated Strategy of Coach

20-5 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 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

20-6 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 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?

20-7 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 20-3: Opportunity Analysis with the SBA

20-8 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Table 20-1: Sales Opportunity Analysis

20-9 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Table 20-2: Benchmarking Through Operating Statements

20-10 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Measuring Service Retailing ♦ Reliability ♦ Responsiveness ♦ Assurance ♦ Empathy ♦ Tangibles

20-11 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 20-4: Utilizing Gap Analysis

20-12 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Minimizing Gaps Customer insight Customer profiling Customer life cycle Extended business model Relationship program planning and design Implementation

20-13 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 20-5: The Retail Audit Process

20-14 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 20-7a: Management Audit Form for Small Retailers

20-15 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 20-7b: Management Audit Form for Small Retailers

20-16 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall 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.

20-17 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall Figure 20-7: A Retailing Effectiveness Checklist

20-18 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.