How_to_Develop_a_Retail_Business_Strategy

How to Develop a Retail Business Strategy As a successful retailer, you need to work ‘in’ your business to generate a return on your investment now and work ‘on’ your business to ensure that you generate a return on your investment in the future. This means it is critical that you take time to stand back from the business and objectively analyse it and develop a plan for the future. 1.Do a SWOT Analysis on Your Business You need an analysis process that will work in your business. Most consultants will tell you that a SWOT analysis carried out at least once a year is critical to your businesses success. Do the SWOT analysis away from the business so that you are not disturbed by the day to day business distractions. Ideally, get your key team members to join you to carry out the analysis. A group of 5 or 6 in a team will develop more thought than one brain. 2.Identify Your Strengths You need to clearly identify the strengths of your business as your first objectives. As a group provide answers to the following: •What do we do really well? •What sector of our retailing adds most to the bottom line? •What are the areas of our business where we outperform out competition? •What parts of our retailing endorses how customers perceive us with positive recognition? 3.Identify Your Weaknesses Do not start your ‘think tank’ with identifying your weaknesses. Start with the positive areas as this builds moral and confidence. But, the key is to identify your weaknesses. You need objective answers to the following questions:- •What areas of your business operation provide the most frequent complaints? •In what situation are we most vulnerable as a retail operation? •What products or processes provide the most problem? •What products or processes bring in the lowest returns? 4.Analyse Your Opportunities Once your decide on what your strengths and weaknesses are, you can than start planning your future direction. Again, start with the positive and look at the opportunities. You will need objective answers to the following questions:- •What opportunities exist to improve the internal running of your retail business? •What are the current marketing opportunities that you should exploit? •What changes are taking place that are external to your business, that will allow you to operate more effectively? 5.Analyse the Treats to Your Business The final part of your SWOT is to analyse the threats to your business. You need answers to :- •What are the main factors that create a potential threat to your retail operation? •Which threats are the most serious to your future retailing operation? •What changes could take place that could threaten your business? 6.Priorities Your Actions Having carried out a SWOT analysis on your business you now need to priorities your findings. You will need to make your decision bases on the response you believe you will get from your team and their capabilities. You will also need to take into consideration your economic situation and your technical skills and abilities. 7.Consider the Human Reaction to Change How will your team respond to change and how will you measure their response. Consider whether you will need to involve your customers and how you will involve your team. You probably need to do a professional selling approach when you address the issues with your team. 8.Consider Your Financial Position How will the change effect your retail business? Why should the change be made, will they reduce costs, increase profits or both and will the increase your market share? What are the major indicators that financial decisions have to be made? Do you have to resources to make economic changes? 9.Understand the Technical Considerations You need to evaluate how technical developments will enhance your business, especially as far as the customers is concerned. Do you have the internal resources to deal with the technical changes and does your team have the knowledge and understanding to deal with the changes. 10.Carry Out a Critical Examination o the Main Areas you Plan to Change A critical examination is where you critique each development change in detail. You must examine all the information available to you and ask: What When Where Who How and Why It is critical that all aspects are examined. Management Memo When analysing change in your retail business you only need to look at the internal aspects of your business, you also need to develop a Positioning Statement. You need detailed, accurate answers to: Out customer are__________ They come to us for__________ Because_________ We are better than__________for the following reasons__________ Customers prefer us because_________ Ref Effective Marketing to the Retail Environment Workshop UK About the author: The above is an article from John Stanley’s best selling book Just About Everything a Retail Manager Needs to Know. John Stanley Associates produce an e-newsletter specific to retailing, this includes innovative ideas and advice to help you grow your profits. If you would like to receive a regular copy please visit www.johnstanley.cc or email us on newsletter@johnstanley.cc.