Retail Terms: Must Read

direct investment	The investment and ownership by a retail firm or a division or subsidiary that builds and operates stores in a foreign country.
diversification opportunity	A strategic investment opportunity that involves an entirely new retail format directed toward a market segment not presently being served.
joint venture	An entity formed when the entering retailer pools its resources with a local retailer to form a new company in which ownership, control, and profits are shared.
market attractiveness/competitive position matrix	A method for analyzing opportunities that explicitly considers the capabilities of the retailer and the attractiveness of retail markets.
market expansion opportunity	A strategic investment opportunity that employs the existing retailing format in new market segments.
market penetration opportunity	An investment opportunity strategy that focuses on increasing sales to present customers using the present retailing format.
mission statement	A broad description of the scope of activities a business plans to undertake.
positioning	The design and implementation of a retail mix to create in the customer’s mind an image of the retailer relative to its competitors. Also called brand building.
private-label brands	Products developed and marketed by a retailer and only available for sale by that retailer. Also called store brands.
related diversification opportunity	A diversification opportunity strategy in which the retailer’s present offering and market share something in common with the market and format being considered.
retail format	The retailers’ type of retail mix (nature of merchandise and services offered, pricing policy, advertising and promotion program, approach to store design and visual merchandising, and typical location).
retail format development opportunity	An investment opportunity strategy in which a retailer offers a new retail format — a format involving a different retail mix — to the same target market.