The key factors for success in the Retail Industry that M&A looks for are set forth below.
Ability to control stock on hand: Many of the Retail Industry’s goods and products are seasonal, with 32.1% of annual sales occurring between October and December. Therefore, retail stores must have tight stock control measures to ensure that popular items are re-ordered and sufficient product lines are available to maximize sales.
Customer centric work force: Retail stores require sales staff that are friendly, helpful and provide excellent customer service.
Ability to expand and curtail operations rapidly in line with market demand: Retail stores need to be able to expand operations during peak periods to meet increased demand (i.e., Christmas trading) but also curtail operations during weaker trading conditions (i.e., economic slowdown).
Attractive product presentation: Retail stores require an effective layout and design, good shelf management, friendly and helpful service and a clean environment.
Strong logistics and distribution backbone: A core strength for most successful retailers is the ability to control margins and costs through efficient and effective logistics and distribution systems between its manufacturers and among its stores to properly manage inventory, among other things.