Report on the Future of Retail Stores
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Added on 2020-04-07
Report on the Future of Retail Stores
Added on 2020-04-07
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1THE FUTURE OF RETAIL STORESStudent NameInstitution Name
2THE FUTURE OF RETAIL STORES Introduction Technology has significantly changed the business world. Currently, the mass migration fromthe traditional brick and mortar to online business strategy has been observed in several industries. 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 their activities. With the proponents of technology claiming that brick and mortar method face extinction 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 the modern business world. The heated rivalry between Aldi and Woolworths in Australia is an ideal example of the competitive nature of the retail industry. Technology adoption in the retail industry has been widespread in spite its effects being uncertain. Despite the spread of technology in the retail market, physical stores will not be extinct in the future as there is more to shopping than convenience and quick delivery. AnalysisAldi is among the few retail stores that believe that technology cannot replace the physical stores. The store uses technology for marketing and utilizes its physical stores to enhance customers’ experience. In Australia, Aldi is one of the retailers that insist on physical presence. 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 mortar influence is dwindling. In its official website, Aldi states that is has over 10,000 stores globally, and over 470 throughout Australia (Aldi, 2017). Despite its physical presence, Aldi ranks among the top ten grocery retailers in Australia further 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 in the wake of technology inception in the retail market. However, it is essential to note that business is about strategizing (Min, 2010). In business, one only accepts changes that will add value to your customers, business idea and mission. For Aldi, technology has proved insignificant to its progress in the present. Aldi’s perception towards technology adoption is supported by the deliberation of Grewal et al. (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 physical presence of enterprises. Technology is vital for collecting customers’ perceptions about a brand’s services and products (Shankar et al., 2016). Furthermore, it is important in the marketing of a brand’s products. In this respect, Grewal et al. (2017), predict that technology will not wipe out the physical presence of retail stores. However, they warn that retailers cannot 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 they consider vital to their sustainability and attainment of their strategic goals. Customers are the most important factor in the retail market. However, this does imply that retail decisions are solely focused on customers. Kumar et al. (2017) argue that retailers should develop and implement business strategies at four levels. These four levels focus on the market, firm, store, and customers. Currently, the widespread inception of technology is based on the customers alone. In fact, Kumar et al. (2017) point out that there is insufficient data 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 value the social aspect of physical shopping with families and friends. Moreover, not all customers
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