Retail Management

SUMMARY: In this chapter we understood the elements of a financial strategy. We examined two important financial documents: the income statement, and the balance sheet. We saw how they are important for retailers in evaluating financial performance. Later, we analyzed the strategic profit model and examined its components. The strategic profit model uses return on net worth as key performance measure for evaluating financial performance. Through an example we saw how using the SPM can improve the financial performance of a retailer. We then discussed the way in which financial objectives are set. The setting of financial objectives requires a combination of top-down and bottom-up planning approaches. Finally we took a look at the various measures used by retailers for measuring performance.