Final answer:
The statement is true; situation analysis is crucial in evaluating a retailer's current position and setting future direction by assessing market trends, consumer behavior, and competitive landscape.
Step-by-step explanation:
Situation analysis is a critical component in the strategic planning process for a retailer, aimed at assessing its current position within the market. The statement that situation analysis seeks to answer the questions "What is the retailer's current status?" and "In which direction should the retailer be heading?" is indeed true. These questions are central to understanding the retailer's current performance, competitive position, and external environment forces, as well as setting a strategic direction for future growth and success.
Formulating a situation analysis involves examining various factors, such as consumer behavior, market trends, competitors, and internal resources. This comprehensive examination allows retailers to identify opportunities for improvement and threats that may hinder progress, forming the basis for informed decision-making and strategic planning.