Factors Affecting Retail Strategy Development and Implementation

Abstract

Retailers are accustomed to planning for the short term because of their historical

merchandising orientation (Cornwall, 1984). As a result, they have been less likely to

pursue the tenets of formal competitive strategy development and implementation than other sectors of the economy (Park and Mason, 1988). However, in markets now characterized by maturity, overcapacity, intense price competition and an essential

sameness among stores, new ways of thinking about the future are required and are emerging (Wortzel, 1987). Only a limited number of studies have empirically explored the issue of retail strategy development. Burt(l978) found that high quality planning is significantly associated with a high level of performance and the absolute rate of return on invested capital.