Finance
Net Profit Margin divided by Net Sales
Net Profit %
A statement identifying target market, format, plan
Retail Strategy
A 6-digit code assigned to every business/industry
NAICS (North American Industry Classification System)
Pad Sites are also known by this common name
Outparcels
The largest retailer in the world
Wal-Mart
Business plan goals are set at the top of an organization and then passed down to lower operating levels
Top-Down Planning
Introducing a new format directed toward market segment not currently served
Diversification
A custom code created by retailers in order to identify each product they carry in store.
SKU (Stock Keeping Unit)
Retail sites that are busy during business hours but are slow during evening
Central Business District (CBD)
Managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty.
CRM (Customer Relationship Management)
Making the world a better place to live
Societal Objectives
Some retailers use multiple approaches to build a high wall around their position
Multiple Sources of Advantage
Represents more than 40% of US retail sales, but the business owner has no control over the brand decision or strategy
Franchising
The shopping center manager develops and enforces policies governing store operations.
Planned Locations
The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
Marketing Research
A retailer's most appropriate measure of financial objectives
Return on Assets (ROA)
An advantage over the competition that is not easily duplicated and can be maintained over a long time
Sustainable Competitive Advantage
Consumers can order merchandise in-store or online
Multi-Channel Retailing
They have centralized management that determines which stores will be in a development.
Unplanned Locations
The percentage of customers’ purchases made from a particular retailer
Share of Wallet
Net Profit Percentage X Asset Turnover
ROA
Market penetration, market expansion, retail format development, and diversification
Retail Growth Strategies
Restaurants, Optical Centers, Airlines, Banks, and Universities
Service Retailing
Your two options, when it comes to choosing a location
Buy or Lease
The total value of purchases from a single customer over a period of time
CLV (Customer Lifetime Value)
A small number of customers account for the majority of store profits
8-20/Pareto Rule
Customer Service, Store Design, Location, Merchandise Management, Pricing, and Communication
The Retail Mix