Retail Market Strategy

1. Retail Market Strategy

Identifies:
1. Target Market

2. Format

3. Bases of SUSTAINABLE competitive

advantage
Store Positioning
 Bases of Sustainable
Competitive Advantage
1. Customer Relationship

2. Location

3. Vendor Relationships

4. Information Systems and Logistics

Toys “R” Us

Times Square
New York City
 Facts about the Store
• Opened: November 2001

• Cost: $35 Million

• “largest toy store in the world”

• 110,000 square feet

 Times Square Location??

Advantages: Drawbacks:
High Pedestrian Only a few retailers
Traffic in the area
Prime tourist Warner Bros. Studio
attraction area Store 1 block away
No longer a “seedy” closed one month
arear before Toys’
opening
 So Why Times Square
• Wants to change “store image”
Old Image: unimaginative, crowded, an
“ordeal for parents”

New Image: fun, interesting

• Is Times Square location good for this

purpose?
 Times Square Toys
• Serve as “flagship” for the chain

• Place to showcase company in a new way

• Place for new product introductions (example,

Microsoft’s Xbox)

• Sales in store really secondary

 Special Features

• 60 foot ferris wheel

• 5 ton dinosaur that roars

• 25 foot replica of Empire State Building

complete with King Kong
 Bases of Sustainable
Competitive Advantage
5. Effective Employees

6. Low Cost Operations

Multiple Sources of Advantage

Wal-Mart
Neiman Marcus