The process of strategy formulation in retail starts with us helping the retailer in defining or stating the mission for the organization. The mission is at the core of the existence of the retailer. The other aspects of the strategy may change over a period of time or may vary for different markets. After defining the mission of the organization, an analysis of the internal strengths and weakness and external threats and opportunities is undertaken to help management decide on the best way to carry out the organization’s mission. The options that can be pursued are then examined and the objectives set.

Next, the management identifies the major strategic alternatives it could pursue. Markets in which the retail organization chooses to complete are then determined. Once this is determined the objectives to be achieved and resources are obtained and allocated to help achieve the objectives. The strategy must then be implemented. Finally results must be measured and evaluated to ensure that the strategy is working and any changes necessary must be affected.

The definition of a retail strategy enables other areas within the organizations to determine their strategies. Primary among these are:

  • Store Location
  • Merchandising
  • Pricing
  • Marketing