Chapter 4

Elements in Retail Strategy

• Target Market

Ø  the market segment(s) toward which the retailer plans to focus its resources and retail mix

•  Retail Format

Ø  the nature of the retailer’s operations—its retail mix

• Sustainable Competitive Advantage

Ø  an advantage over the competition

 Criteria for Selecting a Target Market

• Attractiveness - Large, Growing, Little Competition è More Profits
• Consistent with Your Competitive Advantages

Opportunities for retailers to develop sustainable competitive advantages

-  Customer Loyalty

-  Location

- Human Resource Management

-  Distribution and Information Systems

-  Unique Merchandise

-  Vendor Relations

-  Customer Service