17-07-2012, 03:48 PM
THEORIES OF RETAIL DEVELOPMENT
THEORIES OF RETAIL DEVELOPMENT.ppt (Size: 124.5 KB / Downloads: 65)
ENVIRONMENTAL THEORY
It follows the Darwinian approach i.e. ” survival of the fittest”.
According to this theory ,a change in retail is attributed to the change in the environment in which retailers operate.
This environment constitutes of customers, competitors and changing technology.
Thus , the environment can alter the profitability of a single retail store as well as of clusters and centres .
Wheel of retailing
It was described by McNeir.
This theory suggests that retail innovators often first appear as low price operators with a low cost structure and low profit margin requirements .
As they develop their business, offering a greater range or acquiring more expensive facilities , they lose their focus for entering into the market.
It leaves room for others to enter and repeat the process.
This is termed as “wheel of retailing”.
CONFLICTUAL THEORY
According to this theory retail innovation does not reduce the number of formats available to the consumer, but leads to the development of more formats.
Thus retailing evolves through a Dialectic process i.e. the blending of two opposites to create a new one.