Retail, Diamond, Ellen & Steve, business costs, Golmanis
So many questions are arising regarding the changes taking place in today's retail environment and the viability of the model that was used in traditional retail. Diamond, Ellen & Steve (2000) assert that the most pressures in the marketplace include consumers levels of spending tend to remain weak particularly for the discretionary goods. The consumer expenditure seem to have weak ties through the period of recession and a lot of impact is being felt because of certain factors such as uncertain rise in internet rates, petrol prices and the increasing levels of unemployment. Second, business costs are on the rise both in variable costs and fixed central costs. The business costs seem to be escalating with the value added tax rising to almost twenty percent.
Third, the shopping behavior is changing due to the evolving technology and the continue increase in use of interactive devices. There is also intensifying competition that is evident in the shrinking market with an increased number of players who are converging from other business sectors and countries. More businesses are seeking more appealing to the green consumer by seeking to be more environmentally friendly. Golmanis (2008) argues that there is more probability that the retailers' sustainability policies and agendas will result to commercial performance.
[...] They are in total control of the entire business world and expect upcoming technologies from retailers. The more the consumers become savvier, the more they take charge of their own experience in shopping by leveraging and identifying various sources of information and possible channels to realize their shopping journey. There is a need for the role of the store to evolve and be part of a complex relationship between the consumer and the retailer. Golmanis (2008) asserts that a new balance is significant between emotional engagement and providing inspiration as they offer new experiences in a relevant and consistent way through all the channels. [...]
[...] There is a need to adopt the new technology and change the expectations of the consumer during shopping. The modern retailers are showing some light in coming up with innovative customer journeys and exposing the service gaps hence giving an intervention to the traditional retailers. Currently, according to Krafft & Murali (2010), the consumers interact with the store as their link with a retailer. The store needs to be placed as a viable path that a consumer can take and have the ability to facilitate the experience. [...]
[...] The retailers will be required to review each channel's role and their significance in the creation of the brand proposition. Retailers should reset the store portfolio in order to identify the opportunities associated with immediate cost reduction. The necessary formats, sizes and locations of stores in the market need to be reviewed and align the portfolio related to the store to a new proposition. Retailing will always be impacted by economic pressures, and it is a must or rather of importance for all retailers to engage in critical assessment. [...]
[...] Third, the shopping behavior is changing due to the evolving technology and the continue increase in use of interactive devices. There is also intensifying competition that is evident in the shrinking market with an increased number of players who are converging from other business sectors and countries. More businesses are seeking more appealing to the green consumer by seeking to be more environmentally friendly. Golmanis (2008) argues that there is more probability that the retailers' sustainability policies and agendas will result to commercial performance. [...]
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