MODULE 1 Lesson 2

Retail Planning  
Learning Outcomes
At the end of the lesson, you should be able to:
 define retail strategic planning;
 explain situational analysis;
 evaluate strategic retail planning process.
 Introduction
 Retail strategic planning is a detailed
process organization go through in order to
have the most successful operations
possible.
 Steps in this strategic planning process
include situational analysis, set objectives,
and identification of target markets.
 Target markets represent the demographic
groups of the company believes will be
most opt to purchase its products.
ABSTRACTION
 Retail strategic planning

Is a detailed process organization go through in

order to have the most successful operations
possible?
 Situational analysis
 Involves a review of company’s mission,
opportunities and threats.
 Mission- is the theme that guides the company at all
times.
 Opportunities- represents new options for increasing
revenue and profit.
 Threats- are any external factor that can reduce the
retail business’s ability to
succeed in its mission.
 Objectives – are the various goals a retail business
has set for itself.
 Strategic planning
 Is the process by which the guiding members
of an organization envision its future and
develop the necessary procedures and
operations to achieve that
future.
 Strategic Retail planning Process
1. Defined business Mission
This mission statement is usually a broad
description of a retailer’s
objectives and the scope of activities is plans to
undertake.
2. Conduct a situational audit
Means do an analysis of the opportunities and
threats in the retail environment as well as the
strength and weaknesses of the retail business
relative to its competitors
3. Identify strategic opportunity
After doing the situational audit, the retailer will have to
identify strategic opportunities for increasing retail sales.
These could include growth strategies for the retailer
such as market penetration, market expansion and
diversification strategy.
4. Evaluate strategic Opportunities
Once the situational analysis audit is done, the next steps
involves making an evaluation of the opportunities in
order to determine the retailer’s potential to build up a
sustainable competitive advantage and reap long term
benefits.
5. Establish specific objectives an allocate
resources -
The retailer’s overall objectives are including in the
mission statement. The specific objectives are goals
against which progress towards achieving the
overall objective can be measured.
6. Develop a retail mix to implement strategy
- It involves developing a retail mix for strategic
opportunity in which investment will be made
and to control and evaluate the performance.
- The retail mix will include planning merchandise
assortments, buying systems and merchandise,
planning the retail communication mix and
customer service, store management, visual
design and merchandising.
7. Evaluate performance and make adjustments
- The final step in the planning process relates to
evaluating the results of the strategy and
implementation program.

- Evaluating the strategy and implementation

program will reveal whether the retailer is meeting
or not the objectives set.
 Human Resource Management in Retailing
 Employee engagement is the relationship
employees have with their retail store and their
particular job within the business.
 High employee engagement has a direct
correlation to high levels of work productivity
and loyalty to their retail business.
 If an employee is exhibiting a high level of
engagement with their company, employee
morale tends to be elevated.
Objectives of HRM in Retailing
 The HRM objectives in a retail organization
serve as standards against which
performance is evaluated.

 If objectives are well defined and accepted

by employees, these promote harmony
among human efforts and invite voluntary
co-operation.
 The pace with which new and new corporate
are entering into the retail industry, a retail
organization may have to structure and assign
tasks, policies and resources
 IN order to meet this fast- changing
requirements of the target market,
management administration and employees
were essential components of the
organization.
Importance of HRM in Retailing
 HRM is a function mainly concerned with people at
work and with their relationship within the
organization.
 It can be defined as planning, organizing, directing
and controlling functions for the purpose
of employing, developing and compensating resources
leading to the creation and development of human
relations within the organization with the intention to
contribute proportionately to the individual
organizational and social goods.
 Societal objective
Retailing is all about selling goods or services or
both to consumers for their personal or family
use. Retailers in a society are the final
businessmen in any distribution channel that
links manufacturers to end consumers.
 Functional objective

Retailing is termed as hard and vigorous

business. Functional objective helps an
organization to support and enhance the role of
its employees within the organization through
provision of information, advice facilities and
training.
 Organizational Objectives

Identify the job of HRM in bringing about

organizational overall effectiveness. It involves
HR planning, maintaining good relations with
employees, selection, training and
development, appraisal and assessment
 Well done! You have just finished Module 1.
Now that you have already known the
implication of the retail strategic planning, you
can now continue to the next Module which
will discuss on Wholesale and retail Sales