The Changing Face of Retailing

Running head: THE CHANGING FACE OF RETAILING
The Changing face of Retailing
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1THE CHANGING FACE OF RETAILING
Executive Summary
The objective of this report is to provide a background about the historical development of
departmental and discount stores. The paper gives a detailed idea about the departmental and
discount stores, giving details about its merchandises and the marketing strategies adopted by
them. The paper addressees the concept of merger, diversification and downsizing of the
research firm. It also highlights the concept of cost containment and value driven retailing
driving forces. The paper introduces the readers with the theory of scrambled merchandising.
The report further analyzes the future of retail industry in the next five years highlighting the
concepts of wheel of retailing and retailing life cycle.

2THE CHANGING FACE OF RETAILING
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Historical Background...........................................................................................................3
Overview of Departmental and Discount Stores....................................................................4
Merchandising and Marketing of Departmental and Discount Stores...................................5
Mergers, Diversification and Downsizing.............................................................................6
Cost Containment and Value-Driven Retailing.....................................................................7
Concept of Scrambled Merchandising...................................................................................7
Future of Retail industry in Australia.....................................................................................7
References..................................................................................................................................9

3THE CHANGING FACE OF RETAILING
Introduction
A vast retail trading organization is known as a departmental store. A departmental
store is so called because it has many organized departments. These departments are
categorized according to the type of goods sold. The discount stores are departmental stores,
which offer products at lowered rates or cheap rates. The report gives a detailed idea about
the departmental stores and the discount stores detailing about their functioning, their
merchandise and their marketing strategies. The paper also sheds light to the historical
background of the departmental and discount stores. The paper discusses about the mergers
of these departmental and discount stores and it further analyzes the driving force behind
these stores. The future of the departmental and discount stores has been discussed and
analyzed in this paper. The paper also addresses the concepts of wheel of retailing and retail
life cycle. The paper also explains the concept of scrambled merchandising.
Discussion
Historical Background
The departmental stores were established in the second half of the 19th century in the
major cities around Europe, Australia and North America. In Australia David Jones Limited
was one of these established departmental stores during this phase. These retail stores were
built in the urban environments. The departmental stores that persisted for a longer duration
of time are David Jones,Myer and Grace Bros .Till the year 1970 these departmental stores
used to offer the customers with exclusive credit cards by which customers could buy
products goods from their stores and its branches . However, by 1974 the banks started
launching bank credit cards by using which the customers were able to shop wherever they
wished to.