Which growth strategy focuses on existing customers with the retailer's current format?

The correct answer is the strategy that emphasizes increasing sales to existing customers while utilizing the retailer's current format. Market penetration is aimed specifically at enhancing the penetration of the retailer's products or services within existing markets. This can include tactics such as increasing marketing efforts, adjusting pricing strategies, or improving customer service to encourage more purchases from the existing customer base.

By concentrating on current customers, retailers can maximize their potential revenue without the complexities and risks associated with entering new markets or developing new products. It leverages already established customer relationships and seeks to deepen them, which is often more cost-effective than acquiring new customers.

In contrast, market expansion involves entering new markets or segments, while diversification focuses on developing new products or services, targeting new customers, or even venturing into new areas of business altogether. Retail format development refers to changes in the store's offering or layout to attract customers, which again does not specifically focus just on existing customers within the current format.