How Do I Conduct a Retail Market Analysis?

Maggie Worth
Maggie Worth
Businessman with a briefcase
Businessman with a briefcase

A market analysis is a study that looks at several aspects of a given market segment. A retail market analysis is such a study done for the retail sector. To conduct a traditional analysis, you will need to consider a number of factors, such as consumer buying habits, overall spending and trends. This information is often collected from customer surveys, focus groups and data compiled by governmental agencies. In some cases, you might evaluate a particular company's performance within the overall market.

In a traditional sense, a retail market analysis evaluates the marketplace as a whole. It is often conducted by a governmental, regulatory or consumer agency, but may also be assembled by a research firm. The purpose is generally to evaluate the performance of the retail sector and to identify trends.

While the term "retail market analysis" was specifically intended to apply to studies of the entire retail segment, companies within the retail market often refer to an internal analysis by this term as well. In this case, the analysis would evaluate not only the overall market, but also the company's place within it. It might include factors such as market share, opportunities, and annual growth or decline of the company's sales or profit numbers. This is most likely the context in which you would perform a retail market analysis.

In order to complete this type of retail market analysis, you will need to first determine what factors are important to you. These studies are often conducted for specific purposes, such as determining whether a company's market share has increased or determining how a company's reputation compares to the overall consumer opinion of the retail industry.

Once you know what type of information you wish to glean from your retail market analysis, you will need to establish something with which to compare your company, often called a benchmark. Such studies may be available from the groups conducting them for a fee or you could order a custom analysis from a research firm. For example, if you are looking to see if your company is keeping pace with the market, you will need to see whether overall sales increased or decreased during the previous period, and by how much.

You will then need to collect similar information on your company. Sales, profit and other such data can generally be found in company reports or can be created from the company's accounting or order management system. Consumer opinions may require you to create and administer customer surveys or focus groups. Once you have both sets of data, you can compare the results to see how your company compares to the market as a whole, completing your retail market analysis project.

You might also Like

Readers Also Love

Discuss this Article

Post your comments
Forgot password?
    • Businessman with a briefcase
      Businessman with a briefcase