The document discusses several ways that retailers can achieve sustainable competitive advantage, including through customer loyalty programs, location, knowledgeable employees, efficient distribution systems, private label brands, strong vendor relationships, and utilizing multiple approaches. Specifically, it notes that retailers can build loyalty through branding, positioning, and loyalty programs. It also explains that location advantage is sustainable because it is difficult to duplicate, and having skilled employees committed to objectives supports company success.

1. Sustainable Competitive
Advantage

3. Customer Loyalty
• Retailer can build loyalty through:
– 1. Developing a strong brand image for the
retailer or its private label brands
– 2. Develop a clear and precise positioning
strategies
– 3. Creating an attachment with customers
through a loyalty program

4. Location
• Critical factor in consumers’ selection of a
store
– Most people shop at stores that are closer to
where they live
• A competitive advantage based on
location is sustainable because it is not
easily duplicated

5. Human Resource Management
• Knowledgeable and skilled employees
committed to the retailer’s objectives are
critical assets that support the success of
companies
– Southwest Airlines
– Whole Foods

6. Distribution and Information
System
• Retailers strive to reduce operating costs
and make sure the right merchandise is
available when and where customers want
it, this offers an opportunity for retailers to
achieve these efficiencies

7. Unique Merchandise
• Private-label brands(store brands) –
products developed and marked by a
retailer and available only from that retailer
– Sears – Kenmore, Craftsman and Die Hard

8. Vendor Relation
With a good vendor relationship you may
gain exclusive rights:
• 1. Sell merchandise in a specific region
• 2. Obtain special terms of purchase that
are not available to other competitors
• 3. Receive popular merchandise in short
supply

9. Multiple Sources of Advantage
• Retailers typically don’t rely on a single
approach, such as a low cost or excellent
service
• Multiple approaches to build as high a wall
around their position as possible
– McDonald’s
• Proving customers with a good value t
• Having good customer services
• Possessing a strong brand name
• Having great locations