Retailer financial strategy integrates financial objectives and goals to develop a sustainable competitive advantage and generate desirable profits. Objectives include financial goals like earning profits, societal goals like providing jobs and benefits, and personal goals like self-gratification. The strategic profit model summarizes factors like net profit margin, asset turnover, customer returns, and gross margin that affect financial performance. Assets management analyzes the balance sheet, including current assets that can be converted to cash within a year and fixed assets with long-term usefulness. Performance is measured through objectives focusing on quantity and quality, timeliness, accountability, and store operation metrics like merchandise placement.

1. Chapter 06 Retailer financial
strategy
what is the retailer financial strategy.
Retailer financial strategy integrate the retailer
financial objective and goal, which retailer
develop their strategy to build a sustainable
competitive advantage to generate a desirable
profit.

2. Con….
Retailer objective and goal. the first step in retailer
strategic planning is to set objective, Goals ‘“goal are
long-term aims that you want to accomplish.
Objectives ‘“ that can be achieved by following a
certain number of steps
there are different objective which retailer set it in the
planning stage.
(1) Financial objective..when assessing financial
performance, most business focus to earn profit, what
were the retailer profit ,such as profit of the last year
and what will they be this year and into the future.

3. (2) Societal objective
Societal object of the retailer related to broader
issue about providing benefits to society, for
example retailer might be concerned about
providing job opportunity for people in a
particular area. other societal objective might
include offering unique merchandise ,as well
as providing innovative services which
improve personal health, such as weight
reduction program .

4. (3) Personal objective.
Many retailer particular owner of small,
independent businesses, have important
personal objective ,including self gratification
,status ,and respect., whereas personal and
societal objectives are important but the
primary focus of any retailer to achieve our
financial object.

5. Strategic profit model
The strategic profit model is a method which
summarizing the factor that affect a firm financial
performance. these factor are,
(1) Net profit margin…… simply how much profit
(after tax) a firm earn it.
(2) Assets turnover……… assets turnover is the
retailer net sales divided by its total assets. this
financial arrangement measuring the
productivity of a firm. it means how many sales
dollar are generated by this total amount of
assets.

6. Con………….
(3) Customer return..customer return represent
the value of merchandise that customer
return in the form of purchasing merchandise.
(4) Gross margin…gross margin also called gross
profit.net sales minus cost of good sold.

7. Assets management path
The information used to analyze a retailer assets
management path primary comes from the firm
balance sheet. Balance sheet represent the
retailer financial position at a given point in time.
it represent assets liabilities and owner equities.
(1) Current assets…..by accounting definition
current assets are those assets that can be
normally converted into cash within one year.
such as account receivable .inventory and so on.

8. (2) Fixed assets
• An asset with a long-term useful life that a
company uses to make its products or provide
its services. Strictly speaking, a fixed asset that
business can not want to sell it quickly.

9. Setting and measuring performance
objectives.
Performance measurement helps determine the
progression of employees. Performance
measurement can be used in a wide variety of
industries to measure the progress of employees.
By measuring performance, a supervisor can
determine whether or not goals are being met. To
effectively monitor performance, you must set
following certain objectives.

10. Con….
• Quantity/Quality
– One of the main objectives in performance
management in a retail environment is to determine
the ratio of quantity to quality. Managers should
establish a short-term selling goal for an employee.
This could be a weekly or monthly goal. For a new
employee, set the goal low so the employee can take
the time to effectively learn selling methods and
product knowledge without feeling pressured to sell a
vast number of products.

11. Con…..
• Timeliness
Recording the amount of time it takes an
employee to complete a task is a vital
performance measurement tool. The objective
in recording the timeliness of employees is to
help point out potential problem area.

12. (3) accountability
At each level of the business retailer need to
accountable the total expenses, per day
expenses as well as per year .
(4) Store operation measurement….the critical
assets controlled by store management are
the use by store space that how many
merchandise we need it and where we need
to place it.