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Report on the Future of Retail Stores

Added on - 07 Apr 2020

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1THE FUTURE OF RETAIL STORESStudent NameInstitution Name
2THE FUTURE OF RETAIL STORESIntroductionTechnology has significantly changed the business world. Currently, the mass migration fromthe traditional brick and mortar to online business strategy has been observed in severalindustries. This migration aims to meet the changes that are ongoing in the society. However,some businesses have been reluctant to incorporate this wave of technology into theiractivities. With the proponents of technology claiming that brick and mortar method faceextinction in the future, scholars have illustrated interests in unveiling how technology affectsthe future of retail stores. The retail industry is one of the most competitive sectors in themodern business world. The heated rivalry between Aldi and Woolworths in Australia is anideal example of the competitive nature of the retail industry. Technology adoption in theretail industry has been widespread in spite its effects being uncertain. Despite the spread oftechnology in the retail market, physical stores will not be extinct in the future as there ismore to shopping than convenience and quick delivery.AnalysisAldi is among the few retail stores that believe that technology cannot replace the physicalstores. The store uses technology for marketing and utilizes its physical stores to enhancecustomers’ experience. In Australia, Aldi is one of the retailers that insist on physicalpresence. With the grocery retailer insisting on providing quality products at a low price to itscustomers, it has silenced the proponents of technology who claim that brick and mortarinfluence is dwindling. In its official website, Aldi states that is has over 10,000 storesglobally, and over 470 throughout Australia (Aldi, 2017).Despite its physical presence, Aldi ranks among the top ten grocery retailers in Australiafurther silencing the brick and mortar critics. Interestingly, critics of Aldi’s business strategy
3claims that the store’s lower pricing methodology has enhanced its competitive advantage inthe wake of technology inception in the retail market. However, it is essential to note thatbusiness is about strategizing (Min, 2010). In business, one only accepts changes that willadd value to your customers, business idea and mission. For Aldi, technology has provedinsignificant to its progress in the present.Aldi’s perception towards technology adoption is supported by the deliberation of Grewal etal. (2017) in their article on the future of retailing. According to Grewal et al. (2017),technology should be used to enhance customer engagement not to replace the physicalpresence of enterprises. Technology is vital for collecting customers’ perceptions about abrand’s services and products (Shankar et al., 2016). Furthermore, it is important in themarketing of a brand’s products. In this respect, Grewal et al. (2017), predict that technologywill not wipe out the physical presence of retail stores. However, they warn that retailerscannot assume the growing influence of technology on the customer’s purchasing decisions.Consequently, it essential for retail stores to select the elements of technology that theyconsider vital to their sustainability and attainment of their strategic goals.Customers are the most important factor in the retail market. However, this does imply thatretail decisions are solely focused on customers. Kumar et al. (2017) argue that retailersshould develop and implement business strategies at four levels. These four levels focus onthe market, firm, store, and customers. Currently, the widespread inception of technology isbased on the customers alone. In fact, Kumar et al. (2017) point out that there is insufficientdata on the customers’ preference for online stores over the physical ones. As Kumar et al.(2017) advice, it is essential to address the needs of all customers in the retail world.Precisely, not all customers support the concept of online shopping. Some customers valuethe social aspect of physical shopping with families and friends. Moreover, not all customers
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