Retail

Retail company owners who plan to sell their enterprise to an outside, third-party must take a hybrid approach in their strategic exit plan. In combination with mapping the value of the entity, or benchmarking, an owner must ascertain other aspects of the business that differentiate it from the pool of existing participants.

In many ways the retail industry is similar to wholesalers, however retailers have a higher dependence on the immediate community and clientele base. In addition to many of the intangible value drivers of wholesale businesses, retailers must focus on improving these drivers.

  • Accessibility, convenience and aesthetics of retail location: The location must be easily accessible, conveniently located and aesthetically pleasing (clean, organized, well- maintained) to visit.
  • Branding and recognition: This coincides with marketing and clientele. Name recognition within a local community is essential to viability. The name must be associated with the customer needs.
  • Marketing, advertising and sales techniques: How effective are current marketing and advertising techniques at attracting new customers? How do these techniques compare to local competitors? How often are new techniques employed?
  • Repeat clientele: Repeat clientele are essential value drivers for the companies within the retail industry. A high volume of referred clientele signals efficient operations management and a core position within the community and industry at large.