Define "competitive analysis" in retail merchandising.

Competitive analysis in retail merchandising refers to the process of assessing the strengths and weaknesses of competitors within the market. This involves examining various factors such as pricing strategies, product offerings, marketing approaches, and customer service practices of rival businesses. By understanding these elements, a retailer can identify opportunities to differentiate themselves, improve their own strategies, and ultimately enhance their market position.

This analysis is crucial for informing decisions about product selection, pricing, and promotional strategies, enabling retailers to not only compete effectively but also to anticipate changes in market dynamics. In essence, it equips a business with valuable insights that inform strategic planning and operational excellence.