Retail Operation Management: Strategies, Trends, and Analysis

Retail operation management 0
Retail operation management
Student’s Name
7/15/2019

Retail operation management 1
Introduction
Cold Storage is well recognized as a Singaporean icon that has a popular
household name. It started as a homegrown merchant that delivered fresh quality
meats and dairy products in the year 1903. The company operated its first
supermarket in the year 1960 and currently operates 53 stores Islandwise. It consists
of three brands i.e. Cold Storage, Market Place, and Jason’s. Each brand focuses on
delivering a unique experience to the customers and fulfils the diverse needs of the
customers (Cold Storage, 2019).
The company has focused on introducing various innovative retail concepts
and provides the opportunity of bulk buying and multiple retailing that allows the
customers to save their money and leads to increased customer satisfaction. Cold
Storage focuses on providing diverse and exclusive range of products from all over
the world to the residents of Singapore and well-travelled. The company currently
provides household essentials, health and beauty products, baby care, beverages,
baby care, meat and dairy products, cellar and grocery items (Cold Storage, 2019).
The company focuses on innovation and delivery of fresh quality products. It
recruits knowledgeable staffs that are committed and passionate towards serving
best customer experience. The further paragraphs of the report will outline the
strategies, trends and business environment of Cold Storage.
PESTLE Analysis
Pestle analysis is a framework that helps in analysing the macro environment
that affects the performance of the organization.
Political Factor
It is analysed that there is a low political risk in Singapore and it is an
independent country. The country enjoys political stability and provides the
opportunity to expand business operations. The company has to consider the
taxation policies, pricing regulations and trade regulations and employee benefits to
operating the business successfully (Aithal, 2016).
Economic Factor

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Singapore is considered as a vibrant free market economy and has the
highest per capita income in ASEAN. The government also provide support to
expand business opportunities in Singapore. The company enjoys the support of the
government. The constraints for economic performance include the shortage of
labour and the rising cost of labour. It also covers the rate of inflation and the level of
unemployment in the country (Aithal, 2016).
Social Factors
It includes the values and beliefs of the consumers. It is analyzed that the
consumers in Singapore are family oriented and values western culture. The literacy
rate in Singapore is high which in turn creates the opportunity for Cold Storage to
deliver fresh quality and healthy products to the consumers. The company focuses
on delivering safe products with complete information on the packaging. The
consumers are ready to pay more for the value products (Chen, Yang & Ku, 2016).
Technological Factors
The advancement in technologies plays a major role in advancing the
operations of the business. It allows the company to interact with the customers and
deliver personalized services. The adoption of the latest technology will increase the
cost of the company and will help in improving the value chain. It is analysed that the
company focuses on innovation and adopts the latest technologies to provide ease
to the customers. The customers in Singapore prefer online e-commerce services
and the company has developed the official e-commerce website to satisfy the
preferences of the customers and has developed an in-house app to know the
availability of the products (Chen, Yang & Ku, 2016).
Environmental Factors
Environmental factor plays a major role in the functioning of the company. It is
analysed that the government of Singapore has laid various laws and regulations
regarding environment protection. In consideration of the laws and regulations, Cold
Storage focuses on developing ecological products and undertakes the activities that
reduce waste. It is analysed that pollution is the major concern in Singapore and the
country has the highest carbon dioxide emissions. The company focuses on

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reducing environmental pollution through the adoption of the strategies that protect
the environment (Kim, Park & Ryu, 2017).
Legal Factors
Legal factors play a major role in protecting the intellectual property rights of
the organization. It consists of the employment law, consumer protection, health, and
safety law and also focuses on data protection. The company focuses on protecting
its data and ensures the safety of its workforce. Such factors focus on ensuring
minimum pay to the labour and protect the private data of the company (Kim, Park &
Ryu, 2017).
Trends in Retail
The changes in the behaviour of the customers and their expectations have
developed the emerging need for the business to shift their focus on delivering the
best-personalized experience to the customers. The changes in the business
process are essential for the sustainability of the business.
Investment in Omni channel retail strategies
The customers are demanding seamless experience through the use of
mobile touch points. The customers focus on using mobile devices to purchase the
products. In consideration to the above trend, Cold Storage has developed online
purchase app through the use of mobile devices. The company focuses on sharing
the offers and the pricing to attract the customers and deliver a seamless experience
on just one touch. It allows the sales associate to connect with the customer journey
(Sansone & Colamatteo, 2017).
The shift towards the personalized shopping experience
The expectation of the customers has shifted from material possession to
personalized experience. The customers expect that the company will actively
involve them and will deliver the best customer experience. In response to the above
trend, Cold Storage focuses on delivering a personalized experience to the
customers through hiring knowledgeable staff that is able to guide the customers and
meet their expectations. The company has developed telecommunication channels