Analysis of Retail Industry and Business Strategies

The assignment delves into the world of retail management, examining the key aspects of the industry, including retail business strategies, market trends, and consumer behavior. It covers the historical development of department stores in the UK, merchandise management, and market segmentation. Additionally, it discusses mergers, diversification, downsizing, and value-driven retailing or cost containment. The report aims to provide a comprehensive understanding of the retail industry and its evolving business strategies.

Retail Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Retail management is process which helps for consumer to provide the best quality of
product and services in marketplace. Merchandise used the retail stores for personal use. It is
used different steps which required for customer to buy product in store and full-fill their need
and requirement. Retail business is the fastest growing organization to increase economy growth
in marketplace. Retail business in UK is the most emerging and attractive market across the
world. Customers demand has been increases in day by day.
This assignment will describe the retail business and how they changing departmental
stores and discounts. This report will cover the entire historical departments stores in United
Kingdom and also discuss merchandise and how distinguish market segments and market type of
retail consumers. Further, this report will discuss diversification, downsizing and value driven
retailing or cost containment.
MAIN BODY
Retail industry is the fastest growing organization and reached towards their goals and
objectives. The industry mainly focus on consumer behaviour to change their expectation for
providing the best quality of product and services. It is required for retail business to regenerate
the store positions in market and also identify the need and requirement of consumers. The
organization is changing their traditional method to use different techniques to increase the cost
of operating stores and also change the behaviour of consumers (Chernev and Hamilton, 2018).
Retail company provide online technique to increase the need in the future.
Change the retail departments stores and discounts-
 In today's marketplace, The retail market is a leading organization that provide the
facilities and services for long term plans. I also observing pressure in retail business
such as:
 The Retail business cost continuously increases in market therefore, not only increased
The variable cost but also increased the central cost.
 For increasing modern technology, there are many numbers of devices applicable in
business easily determine consumer behaviour.
 Business sustainability and company policies are contributes towards the commercial
performance.

Historical development of departmental store and discount in UK-
The earliest stores and departmental shops focus on providing high quality of product and
services and inspired with the high quality of merchandise. The departmental store more relevant
with the shopper because they provide variety of product and item to their customer which is
Illustration 1: Retail business system
(Source: Retail business, 2017 )

required for departmental store to full-fill the need and requirement of business. Modern
technology operate entire retail business and also increase their efficiency and capabilities in
marketplace. Departmental store is important role playing in history of retailing business and
these stores are becoming iconic symbols of economic condition. The departmental store is main
concept in retail business to increase their productivity and provide many offers to their
consumers. This store provide discounts on product so that many customers influence for
developing their business all over the world. The retail developer establish connection with the
different merchandise to achieve their goals and objectives (Paul and Ponnam,2018).
Retail market is combining with the merchandise to develop their business in global marketplace.
Business to business market is plays important role in the world. In this way, it can be start the
business and divided into different segments discuss in followings:
The retail industry influence the consumer to buy the product in different platform to give many
discounts and schemes. The organization uses different segmentation bases that would be
classified on the basis of consumer demand and requirements. Big and large departmental stores
segments with the populations to determine their daily habit, routine and medical conditions and
then targeting in market.
Behavioural segmentation- This segments is determined that what are benefits provide
consumer and how they can use the product and services.
Psychographic segmentation- What do customers think about the product and services.
In this way, It will identify their choice and their need.
Retail industry is planning individual strategies which helps for modify in retail
institutions. Many retailer business have decreased their profit margin because competition level
is very high in marketplace and consumers attract towards the lower prices. In this way, it will
increase the pressure on retail industry to promoted their product and services highly rate while
remove all unprofitable product in departmental store.
Mergers, diversification and downsizing – The retail industry reacting on the promidable
business environment such as diversification, value driven retailing, cost containment mergers,
downsizing while diversification helps for increasing the growth rate in competitive marketplace.
For big and largest retail organizations mainly focus on latest trends for future development.
Mergers has been established their own separate and individual retails business to increase their
productivity and profitability in marketplace (Kasemsap, 2018). Other mergers also have smilier

retailer business like local banks and video chain for entertainment, mergers merge with the
retailer business to increase the resources and improve their performance, bargaining,
productivity, gain the competitive benefits for retail business. In this way, those retailer have
more resource so that grown their business rapidly and enhance the strategy planning for long
term. In rapidly evolving the retailer so that consumer has increased their need and requirement
and they still take right decision for purchase highly efficient product. Retailer connect with the
customer by giving information regarding the product and services. Modern technology helps for
retailer to provide appropriate goods for consumers and technology also helps for provide the
correct information to their consumers (Yong-xiang and Han 2018). Technology helps for
consumer to identify the correct product in marketplace which required for retail industry to
maintain their facilities and service in global marketplace.
As the advancement of mobile technology in every sector it influences retail world in
recent years the retail sector will drastically change in next 10 years. Nearly 80 percent of
retailers and customers use smartphone technology for enhancing their shopping experience.
Retail going to be totally automated in 10 years as advances in technology (Banerjee and Mishra,
2017). This technology gives the satisfaction and clear image to customer and retailers to
compare prices, read reviews, obtain digital customer service etc. Services will connect online
and offline shopping would increase as well, with more drive-thru pickup and order online, pick-
up-in stores services. Checkout also will be self-service or with cashiers using computer tablets.
Shoppers will just touch their smartphones to coded tag on item and then select a colour and size
on their phone. Technology in the store keep track of items and by the time a shopper is ready to
try them on, they're already at dressing room. Instead of using old indoor location technology to
transfer random deal, many retailers will explore how they can integrate the technology with
existing customer loyalty programs. This will allow for highly personalized offers that can
distribute to shoppers in real time. In next 10 years this sector will be forefront in digital
presence, omni channel strategy, mobile wallets, customized recommendation.
In changing pattern of retailing it impacts the stores. The future of purchasing and buying
goods and services will be fully automated in next 10 years will change the stores and scenarios
as well. The way that consumers make purchasing decisions has dramatically altered: they use
their mobile technology for comparing prices and product reviews. Due to this retail introduce
many tools to make ease for customer. For example McDonald's using self service kiosks were

more likely to supersize their orders. Company also updated system with mobile pay option,
updated interior design ad table service. The customer will be able to order from automated kiosk
on touch screen and payment is done at same time (Lorino, Mourey and Schmidt,2017). At retail
stores self-checkout system will also introduce. Which includes seamless shopping experience,
digital shopping, breaking down silos between mobile. Device like iBeacons have potential to
provide insights into customers, in stores device usage and behaviours. Retailers can use the data
in a variety of ways to support their future marketing efforts. In recent years the retail stores
suffered losses due to online shopping and showroom. iBeacons have potential to change the
way brick and mortar retailers to reach customers. Many brick and mortar stores have coming up
with creative ways to integrate mobile into stores. Some stores like British retailer Tesco and
drug-store Duane Reade now are testing beacons, Bluetooth enabled devices that can
communicate directly with you mobile phones to offer discounts, direct you to a desired product
in store or enable you to pay remotely. In next 10 years the stores will be fully robotic. Robot
customer services solve many problems in stores that they may offer another self-service that
customer crave. Lowe's is testing LoweBot which speaks multiple languages and help customers
to find and learn about items. Robot guards for Security will be used in stores in the future
(Hicks, McWhirter McArthur,and2017). The Wheel of retailing means changing in retailing
environment due to some factors like political, economic, social, technological, legislative and
environmental. These factors majorly affecting the retail sector. All these changes have to led of
new opportunities even as they are shaking up their business.
Step 1 Establishing and Penetrating in market: The new retailers which often enter the market
place with low price as well as low profit margins and sometimes low status. The low prices are
usually the result of some innovative cost-cutting procedures. These procedures will most
probably attract competitors if the entry barriers are not high enough.
Step 2 Expanding in market: After gaining experience in retail marketing, these retailers will
try to enlarge their customer base with increasing in sale, profit margins as well as acquiring a
significant market share.
Step 3 Stabilized business model attracting margins: In this stage the business is already in
stable position, so rates are enough to get minimum margins. Because of this margins company
expanded their business moderately and increase its reach to attract customers more and more.
This the most profitable stage for any retailing company.

Step 4 The entry of another retail competitor: As business expanded in above stage high
quality products are available to market or by providing additional services. The operations and
facilities are increase they might require extra labour, expertise, warehouse etc. which may cost
more. Overall this stage is cost high for original retailer.
Any retail stores have their own retail life cycle. In this retailer go through many ups and
downs that bring discernible stages of growth and decline (Filimonau and Gherbin2017). In retail
life cycle there are many stages which is based on sales and profit growth experienced during the
stages.
Innovation: It is also known as Emerging stage, this is the starting point of any retail store. In this
stage the start up is build means owner have idea, puts in business plan, acquiring fund and
establish business in reality. Business in the innovation stage are just begin their journey in life
cycle where profit must be low because customers are getting know about business.
Growing: This is important one in life cycle because not growing means low business. Growing
in business is must, company has passed sniff test with consumers i.e. trust, appreciation and
make their place in market.
Maturing: Maturing stage are golden periods for business in which learned something new,
settled into routine (Kasemsap, 2018). In maturing stage more competitors come in line and
innovation needed for survival in market. Maturing is the stage where if new creative ideas are
not found in business then decline stage is will surely come.
Decline: This stage of life cycle indicates the business or retail store concept are no longer i8n
market. For maintain their existence in market either come up with new plan or slowly but surely
business concept will die.
The merchandising means sale of goods and services at retail. This activity includes
display technique, free samples, demonstration, pricing, shelf talkers, special offers and other
methods of sales (Burke and Sensormatic, 2017). In scrambled merchandising the retailer may
sells unrelated products to boost his top/bottom line and also for better utilization. Some times
this may give negative effect to consumers. This is generally used by small and medium business
retailers whose only aim to make more money.

CONCLUSION
As above discussion, it concludes that retail industry is a leading organization for
providing the best quality of goods and services to consumers. This report discuss retail business
and how change departmental stores and discounts. It also covers the entire historical
departments stores in United Kingdom and also discuss merchandise and how distinguish market
segments and market type of retail consumers. Further, discussion about the merger's
diversification, downsizing and value driven retailing or cost containment in retail market.

REFERENCES
Books and Journals:
Chernev, A. and Hamilton, R., 2018. 6. Price image in retail management. Handbook of
Research on Retailing, p.132.
Paul, R. and Ponnam, A., 2018. Teaching Customer Experience Quality and its Significance in
Retail Management: A Role Playing Game using Chinese Puzzle ‘Tangram’. Decision
Sciences Journal of Innovative Education, 16(2), pp.126-139.
Kasemsap, K., 2018. Retail management and electronic retailing. In Supply chain management
strategies and risk assessment in retail environments (pp. 139-158). IGI Global.
Yong-xiang, F.E.N.G. and Han, Y.A.N.G., 2018. Research and Application of Data Mining
Technology in Drug Retail Management System. Computer Knowledge and
Technology, 5, p.003.
Banerjee, M. and Mishra, M., 2017. Retail supply chain management practices in India: A
business intelligence perspective. Journal of Retailing and Consumer Services, 34,
pp.248-259.
Lorino, P., Mourey, D. and Schmidt, G., 2017. Goffman's theory of frames and situated
meaning-making in performance reviews. The case of a category management approach
in the French retail sector. Accounting, Organizations and Society, 58, pp.32-49.
Hicks, B.J., McWhirter, B.K., McArthur, D. and et.al., Retail Technologies Corporation,
2017. Store mobile cloud application system for inventory management and customer
order fulfillment and method for retail establishment. U.S. Patent 9,747,632.
Filimonau, V. and Gherbin, A., 2017. An exploratory study of food waste management
practices in the UK grocery retail sector. Journal of Cleaner Production, 167, pp.1184-
1194.
Kasemsap, K., 2018. The roles of corporate marketing strategies and brand management in the
global retail industry. In Digital Marketing and Consumer Engagement: Concepts,
Methodologies, Tools, and Applications (pp. 294-325). IGI Global.
Burke, A., Sensormatic Electronics Corp, 2017. System and method for retail customer tracking
in surveillance camera network. U.S. Patent Application 15/076,708.

Online:
Source: Retail business, 2017.[Online] access
through:<http://rasci.in/downloads/2011/The_Store_Future.pdf>