Lesson 2 Overview

In this lesson, we will cover retail strategy. Retail strategy is an overall plan that guides a retailer’s actions. In most situations, a well-designed plan can mean the difference between success and failure.

As your textbook contends, failure to develop good plans can spell disaster. Think about your own life. If your family were going to drive from Cincinnati to San Diego, would your parents travel without a plan for which highways to use? They certainly could, but it might take your family much longer to get there. What about political candidates? They always have a game plan for an election and a huge staff of people guiding them on their journey to success at the polls. What about in your undergraduate career? Do you plan your assignments in a planner or iCal? You don't want to face all-nighters, incompletes, or worse! A well-designed plan of action is necessary in our own lives and in the life of a retailer.

Planning requires anticipation and organization focused on what needs to be accomplished. Planning impacts success in all arenas—personal, business, or even sports. Have you ever heard of Wayne Gretzky? Some say that Gretzky was one of the greatest hockey players to ever have played the sport. Most people say his success came from his agility, speed, and accurate shot. He acquired these skills by anticipating what abilities he'd need to be successful and then implementing a plan to develop them to the highest possible level. 

Gretzy once said, "Skate where the puck is going to be, not where it is." Gretzky's quote is all about anticipation—that is, the need to be proactive and not just react to situations and events. Success in retailing also requires anticipation. It's difficult to know in advance what styles will be successful in the upcoming season. Customers' needs and wants are constantly changing. Retailers must consistently adapt to the problems and opportunities of an ever-changing environment. Think about changing demographics, social changes, technological changes, and legal changes; for example, consider how the Internet has affected store-based retailing and how mobile technology changes shopping habits. In 2014, it was reported that mobile commerce would account for 33% of U.S. online holiday sales (AmeriCommerce, 2014).

So much change is happening. Mobile Internet connections are faster, hardware is better, and it's now common to use a phone or tablet in various settings. The way retailers anticipate and plan for changes will impact their success. That’s why retail strategy is so important!

Lesson Objectives

After completing this lesson, you should be able to

• define retail strategy and its components,
• explain why strategic planning is important for all types of retailers,
• explain how strategic planning and corporate social responsibility are interwoven,
• explain the steps in the strategic retail-planning process,
• define a strategic window of opportunity, and
• classify the different strategic growth opportunities retailers can pursue.

Lesson Road Map

By the end of this lesson, make sure you have completed the readings and activities found in the Lesson 2 Course Schedule.

 

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References

AmeriCommerce. (2014). eCommerce Infographic: Holiday Sales 2014 [Infographic]. Retrieved from https://www.americommerce.com/blog/Holiday-Sales-The-Numbers-Infographic