The term strategy is frequently used in retailing. For example, retailers talk about their merchandise strategy, promotion strategy, location strategy, and private-brand strategy.
Retail strategy isn’t just another expression for retail management.
Definition of Retail Market Strategy
A retail strategy is a statement identifying-
1) The retailer’s target market
2) The format the retailer plans to use to satisfy the target market’s needs, and
3) The bases upon which the retailer plans to build a sustainable competitive advantage.
The target market is the market segments(s) toward which the retailer plans to focus its resources and retail mix.
A retail format is the retailer’s type of retail mix (nature of merchandise and services offered, pricing policy, advertising and promotion programs, approach to store design and visual merchandising, and typical location and customer services).
A sustainable competitive advantage is an advantage over competition that is not easily copied and thus can be maintained over a long time.