Formulation of Better Prospects to Overcome Business Obstacles

This research paper provides an analysis of the retail sector in the United States, focusing on six major companies: Wal-Mart, Amazon, Costco Wholesale, The Home Depot, Apple Stores/iTunes, and Aldi. It examines their market presence, revenues, and compares their offerings. The paper also highlights the challenges and makes recommendations for improvement, such as enhancing quality focus for Walmart and addressing convenience issues for Aldi. The research aims to contribute to a better understanding of the retail industry and its potential for expansion.

1
Formulation of Better Prospects to Overcome Business Obstacles

2

3
Contents
Executive Summary.......................................................................................................4
Introduction....................................................................................................................5
An Overview of the Retail Sector in the United States..................................................5
Six firms located in U.S.................................................................................................6
1) Wal-Mart................................................................................................................6
2) Amazon...................................................................................................................7
4) The Home Depot....................................................................................................8
5) Apple Stores/iTunes...............................................................................................9
6) Aldi.........................................................................................................................9
Kelsey’s Comparison of 6 Companies...........................................................................9
2) Amazon.................................................................................................................10
3) Costco Wholesale.................................................................................................10
4) The Home Depot.................................................................................................10
5) Apple Stores/iTunes.............................................................................................10
6) Aldi.......................................................................................................................10
Conclusion....................................................................................................................11
Recommendations.....................................................................................................11
References....................................................................................................................12

4
Executive Summary
This research paper is an in-depth study of the analysis of how to formulate business
issues and how these problems are critically analyzed by managers. The
Methodologies are discussed for the evaluation and interpretation of quantitative
data. This paper further discusses the structured and coherent arguments related to the
business recommendation to support managerial decisions. Also, the visualization of
provided data conveys the results accurately and precisely.

5
Formulation of Better Prospects to Overcome Business Obstacles
Introduction
This paper's purpose is to bring critical awareness to the ongoing problems in
business analysis. The study will discuss a piece of knowledge about how to apply
appropriate methodologies to come up with solutions for business problems to
achieve the required objectives. The study will also develop the understanding about
the communication of outcomes through proper visualization and to present the
arguments using data-driven insights. Furthermore, this paper demonstrates the ability
to think critically in decision-making based on data by deep analysis.
An Overview of the Retail Sector in the United States
Though the retailing process, this will continue in the upcoming years as an
overridden mode in the retail sector of the United States. Retail Markets have a wide
range of products that includes apparel, furniture, appliances, and groceries. To quote
examples as well known retail markets of the US are Amazon, Wal-Mart, eBay, and
many others as the US has many businesses running in retail.
In 2012 US is considered to be the largest retail marketing sector. The retail
four largest firms are responsible for about eight percent of all retail sales. This has
been noticed that almost fifty percent of all the e-commerce retail sales in the year
2012. Further, we discuss retailing of businesses has a larger percentage in the past 15
to 20 years than the share occupied by e-commerce.
The impact of the retailing sector has a greater influence in regards to e-
commerce and physical retail is so in a fashion that it seems to be nearly impossible
for it to get abolished. In this research paper, we are to analyze the changes over the
time in US retail market with these and some other relevant dimensions.
If we as a whole have an overview of the retailing sector, which has been
reducing as a share of total US economic activity and in terms of the employment

6
share. Retail has been experiencing a firm hold than average in productivity and
growth. Let's discuss the two substantial forces that shape the retail market e-
commerce and warehouse clubs or called supercenters.
If we look at a broader perspective of retailing in the US which includes
scales, dynamism, and a degree of urbanization, we can have a conclusion about the
future of the retailing industry as a sector.
Referring to the word Retail we are bound to follow the sector definitions that
are used by the statistical agencies in the United States and many more countries.
(NAICS) The North American Industry Classification System) being used by the
statistical agencies in the United States and also in Mexico, Canada uses the terms of
retail trade has been entitled as retailing merchandise usually without any
transformations and are engaged in retail the merchandise usually without and
transformations and providing services.
Likewise, ISIC (International Standard Industrial Classification) terms the
retail sector as sales made without any transformations of the fresh, new, or used
goods to the general public for their usage, and household consumption. These
definitions hold two significant commonalities.
In the year 2015, the United Nations' global usage and the trends in production
remain unsustainable though the policy of sustainable development has gained a firm
hold in the past years. Azapagic and Perdin (2000) suggest that the private sector
should be playing a remarkable role in the identification and implementation of
solutions that have a long-lasting impact.
The studies of Elkington, 1994 suggested that businesses should be playing an
integral role in the development of sustainable strategies development. Also said to
Fiksel, 2006 appropriate development and social responsibility have risen as very
important planning hurdles for the company’s related to every industry.
Six firms located in U.S.
1) Wal-Mart

7
Wal-Mart is a renowned name in retail marketing when it comes to physical
stores in the food retail sector. This Food Retail Chain (FRC) has generated an
environment where only a few retailers are responsible for the majority of U.S. food
purchasing.
In the year 2014, it attained the largest FRC in the U.S. with $117.4 billion in
groceries being sold. This increased FRC in general and specifically Wal-Mart has an
impact on U.S. households buying and eating.
Further very rare studies have been associated with Walmart to poorer diet.
Bonnano et al. have reported that the increased amount of Walmart store density is
directly linked to the decreased ratio of adults consuming at least 5 servings of
vegetables and fruits each day.
On the other hand, Volpe and colleagues have come across that a one percent
increase in the local market share of the supercenter was linked to the percentage 5 to
22 percent reduction in health food purchasing. However, both the studies
demonstrated the afterward effects on the density of stores after purchases instead of
actual nutritional profiles from purchases.
2) Amazon
At beginning of the year 2017, Amazon initiated its sans checkout grocery
retail store. This is specifically designed for the ones who do not like to wait in the
checkout line. The intelligence technology tracks the purchase and permits them to
exit without physical checkout and they are charged automatically from their
associated accounts.
To understand completely the implications of this innovative technological
and operational advancement it is a must to look at how the entire shopping process
swift towards Amazon Go. Amazon significantly states that the technological
improvement behind their no cashier systematic operation being used is just like the
driver-less cars according to Amazon Go Editorial Staff 2017.
According to Dispert, 2017 however this is not only applicable to the
automotive industry but instead of this vision technology is also being utilized from a
larger perspective to make sure the quality and keep check, test, and sorting of parts
become easier convenient.

8

9
3) Costco Wholesale
According to Kim, Kim and Seo, 2014, said that the fast-changing
circumstances in the world of retail businesses are surrounded by large discount
stores. Very little research has been carried out on wholesale retailers in the past few
years.
Costco is a wholesaler multinational corporation situated in the United States and is
operating globally and also providing memberships. Costco is selling about four
thousand individual products in each store.
The products categorization at the end of the fiscal year 2013 were Sundries
at 22 percent, Food at 21 percent, Hardlines that comprises of electronics office items
as 16 percent, soft lines that mainly includes clothing, jewelry, house essentials ratio
up to 11 percent, Fresh Food ratio up till 13 percent and Accessories with others up
till 17 percent.
4) The Home Depot
The Home Depot is the world's largest home for retailing, selling, and a larger
collection of merchandise at varying competitive prices. Home Depot has reportedly
made net sales of $53.6 billion during the year 2001 which was increased by 17
percent as compared to the year passed and approximately 250,000 people were
employed.
Further for the continuous six years, Home Depot is ranked as the most liked
and admired retailer in Fortune magazine as America’s favorite retailing wholesale
outlet. According to Marcus & Blank 1999, Home Depot stood up to three-legged
stool planning which says that the customers should be provided with a wide variety,
lower prices, and good quality service.
Home Depot initiated its Internationalisation process by making an entry into
Canada, Chile, Argentine, and Mexico. In the future, the second Home Depot was
opened in December 1998 and at the end of 2000, it has another store opened in Chile.
Home Depot applied its retail format in Chile as well because of its success in US and
Canada.

10
5) Apple Stores/iTunes
The sales in iTunes Music Stores increased in the United States from 11.8
billion in 2003 and the last year was 7.1 billion which shows that the graph has
progressed positively. This has been evidenced by the recording industry in America.
When there was inflation the revenue of Apple has been more than halve initially
when Apple has come up with its iTunes Music Stores.
It was noticed that people were purchasing more music than ever, this has
been greatly made possible by making cheap digital singles popular among people.
The CEO of Apple/iTunes was offering digital albums for $10 and any track that was
outside of the album of singles for 99 cents. This has a massive impact on the music
industry and it changed forever.
Music sales reached their peak in the year 2000, Americans purchased 943 CD
albums. Apple iTunes industry competitors like Rhapsody were more concerned and
serious about streaming music.
6) Aldi
Aldi is operating in about 2000 stores in 36 states and is to be America’s third
largest supermarket chain behind Walmart. It has increased up to 2,500 stores at the
end of the year 2022. Aldi is not a preference for all as many customers are not price
conscious and does not readily accept the low-frill outlet. However, others seemingly
remain loyal to Aldi. It is not for the ones who don’t like to work extra by bringing
bags and then returning the carts.
Many of the local citizens do not prefer Aldi due to its inconveniences as
compared to other American grocery stores. At Aldi paper bags and shoppers are
available at some cost and the check-out cashiers quickly rush the shoppers away and
make them put their groceries which might seem a very disturbing experience during
shopping. The greatest competitive advantage of Aldi is its availability as a physical
store. However, the company lacks in a few areas and has to do a lot of work in home
delivery.
Kelsey’s Comparison of 6 Companies

11
1) Walmart
In the year 2022 Walmart possesses about 4,742 stores in total all across the
United States. Walmart Stores are the most well-known and most valued brands all
across the globe. Altogether Walmart had a total of 10,957 properties all across the
world out of which 10,593 were retail stores.
2) Amazon
Amazon has doubled its sales comparatively in the domestic retail piece to the
percentage of 56.7 in 2021 from 28.1 in the year 2014.
3) Costco Wholesale
Costco Wholesale Corporation is an international chain of membership
warehouses that has quality brands at lower prices as compared to typical old
traditional wholesale and retail stores. These warehouses are specially designed to
support small and medium-sized businesses in purchasing for everyday business uses.
The products can be purchased separately by individuals for personal needs. Its
revenue per year is $192 billion.
4) The Home Depot
In recent times, The Home Depot is considered to be the world’s largest home
improvement retailer and has 2,300 stores in U.S., Mexico, and Canada.
5) Apple Stores/iTunes
Apple Music's worth is $9.99 per month and about &14.99 per month for the
family subscription which is valid for up to six persons in each family.
6) Aldi
In recent times, Aldi a Germany-based company operated in more than 2,100
stores in the U.S. In June 2020 this company reached 2000 stores with two stores
opened in California.

12
Conclusion
This research paper has in-depth investigated the top tier 6 Retail markets of
the U.S. and compared them with each other. What are they offering, what are the
revenues and how have they progressed with time. From which country did they
initiate and now how many chains do they have exactly in what countries.
What is the total revenue of each firm and how do they co-relate and
differentiate from each other? This paper also provides a thorough understanding of
the drawbacks of each firm and how likely people visit the outlets and why they avoid
visiting. Six different retail markets have been explored in the U.S.-based economy
and we come to know that each has its unique selling proposition and each retail
market is positioned to fulfill a different purpose of purchasing.
Recommendations
Though each market is serving its purpose rightly but there are a few
drawbacks that should be considered by each such as Walmart should be more
quality-focused, and Aldi should at its minimum provide paper bags and shoppers for
the visitors who are willing to purchase these small lickings can make a firm suffer.
The company on a whole is generating good revenue and is expanding its
market internationally with good progress. One more interesting aspect for further
research is to apply the institutional approach to have a better and deep understanding
of some different types of retailing including grocery and departmental stores.
It should be further investigated how these markets can be expanded to other
regions and areas of the world. How eager are the purchasers from the other part of
the world to have a chain of the retail market of your businesses in their country.
What are the interests of the people and how can it be implemented with
certain improvements applied to flourish massively. If all these recommendations are
kept into consideration is expected that retail marketing will flourish and meet heights
of success without any doubt.

13
References
Agrawal, N. and Smith, S.A., 2015. Retail supply chain management. Springer.
Bianchi, C.C. and Arnold, S.J., 2004. An institutional perspective on retail
internationalization success: Home Depot in Chile. The International Review
of Retail, Distribution and Consumer Research, 14(2), pp.149-169.
Brandes, D. and Brandes, N., 2012. Bare essentials: the Aldi way to retail success.
BoD–Books on Demand.

14
Covert, A., 2013. A decade of iTunes singles killed the music industry. CNN
Money, 25.
Gaur, V. and Kesavan, S., 2015. The effects of firm size and sales growth rate on
inventory turnover performance in the US retail sector. In Retail Supply Chain
Management (pp. 25-52). Springer, Boston, MA.
Hortaçsu, A. and Syverson, C., 2015. The ongoing evolution of US retail: A format
tug-of-war. Journal of Economic Perspectives, 29(4), pp.89-112.
Jaravel, X., 2019. The unequal gains from product innovations: Evidence from the us
retail sector. The Quarterly Journal of Economics, 134(2), pp.715-783.
Joseph, L. and Kuby, M., 2015. Modeling retail chain expansion and maturity through
wave analysis: theory and application to Walmart and target. International
Journal of Applied Geospatial Research (IJAGR), 6(4), pp.1-26.
KIM, J.J., 2019. The Empirical Study on Purchasing Behavior between Costco
Wholesale Members and Non-Members. Journal of Distribution
Science, 17(9), pp.25-33.
Kjellberg, H., Hagberg, J. and Cochoy, F., 2019. Thinking market infrastructure:
Barcode scanning in the us grocery retail sector, 1967–2010. In Thinking
infrastructures. Emerald Publishing Limited.
Lafontaine, F. and Sivadasan, J., 2020. The recent evolution of physical retail
markets: Online retailing, big box stores, and the rise of restaurants (No.
c14378). National Bureau of Economic Research.
Lane, H.W. and Hildebrand, T., 1990. How to survive in US retail markets. Business
Quarterly, 54(3), pp.62-67.
Menrad, K., 2003. Market and marketing of functional food in Europe. Journal of
food engineering, 56(2-3), pp.181-188.
Naidoo, M. and Gasparatos, A., 2018. Corporate environmental sustainability in the
retail sector: Drivers, strategies and performance measurement. Journal of
Cleaner Production, 203, pp.125-142.
Naidoo, M. and Gasparatos, A., 2018. Corporate environmental sustainability in the
retail sector: Drivers, strategies and performance measurement. Journal of
Cleaner Production, 203, pp.125-142.
Polacco, A. and Backes, K., 2018. The amazon go concept: Implications, applications,
and sustainability. Journal of Business and Management, 24(1), pp.79-92.

15
Rahman, M.H., 2020. Financial analysis of costco wholesale corporation: exploring
the strengths and weaknesses. The Bangladesh Journal of Agricultural
Economics, 41(1), pp.17-34.
Servera-Francés, D. and Arteaga-Moreno, F., 2015. The impact of corporate social
responsibility on the customer commitment and trust in the retail
sector. Ramon Llull Journal of Applied Ethics, (6), pp.161-178.
Taillie, L.S., Ng, S.W. and Popkin, B.M., 2016. Walmart and other food retail chains:
trends and disparities in the nutritional profile of packaged food
purchases. American journal of preventive medicine, 50(2), pp.171-179.
Wu, Y., Zhou, Y., Wang, X., Zhang, Q., Yao, X., Li, X., Li, J., Tian, H. and Li, S.,
2019. A comparison of functional features in Chinese and US mobile apps for
diabetes self-management: a systematic search in app stores and content
analysis. JMIR mHealth and uHealth, 7(8), p.e13971.