HK2042 - Retail Management: Evolution of Department & Discount Stores

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This report examines the evolving landscape of retail management, focusing on the roles of department stores (Target) and discount stores (JB Hi-Fi) in Australia. It delves into the definition of retail, various retail formats (department stores, mom-and-pop stores, malls, supermarkets), and the retail life cycle, including the Wheel of Retailing theory. The report also analyzes current retailing trends such as visual search, augmented reality, customer-controlled delivery and returns, personalized experiences, and reimagined brick-and-mortar strategies. Furthermore, it discusses the importance of standards and best practices within the retail industry, including securing payment systems and brand demonstration. The report concludes with recommendations for retailers to adapt theoretical frameworks, optimize online shopping campaigns, and offer curated product alternatives to enhance the customer experience. Desklib provides access to this and other solved assignments to aid students in their studies.

HK2042 – RETAIL MANAGEMENT
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Contents
Introduction................................................................................................................................ 3
Research Topic:......................................................................................................................4
Background:........................................................................................................................... 4
Description:............................................................................................................................ 4
Recommendations:................................................................................................................... 10
Conclusion................................................................................................................................11
References................................................................................................................................ 12
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Introduction
The retailing process has undergone a huge revolution in the past few years. The retail
business which was being operated before 10 years is completely different from the present
one. In this assignment, the discussion would be completely based on the important topic and
the scenario of the Retail Management in the market and the business organization of Target
being chosen as the department store and the JB Hi-Fi is determined to be as the discount
store in Australia. It would have the clear understanding of the proper management in the
retail store along with the description of the retail merchandise in the retailing segment. The
description would be also given of the wheel of retail and the retail cycle to be determined as
the very important part of the era. The important trends of retailing would be also discussed
in the scenario.
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Research Topic: The changing face of retailing: How department stores and discount stores
as a part of retail stores are evolving are evolving?
Background: As per the scenario, here is the description of the two stores of Australia in
which Target is chosen as the department store and the JB Hi-Fi is determined to be as the
discount store in Australia.
The Target is a well-known department store of Australia which has its dealings in the
offerings of the various Home related products, electronic items, clothing’s and many more
exclusively having the designer collections. On the other hand, there is the description of the
discount store named as the JB Hi-Fi which deals in the business of consumer goods and
services having the specification in the video games, DVDs, CDs and many more. It is also
involved in a lot of Telstra services.
Description:
An understanding of the retail industry and identification of the different retail formats
as a part of merchandising: The word retail has been derived from a French word where it
is followed by a prefix identified to be "re" and the meaning of the verb tailer meant to have
the cutting again. Though, it has been determined that the trade or the business which has the
cutting of the larger amounts of goods into a small portion is determined to be a retail trade
business (Evans, et. al., 2016). It has the involvement and the selling of the goods to the
customers while dealing with a single location or point which can be a department store,
malls, markets and many more. These are sold directly to the customers in very small parts or
the quantities for having the last point use of the same. In the recent time, it has seen to have
emerged as the most dynamic industries. It is all because of the presence of the huge
competitors in the market. The contribution to the overall Gross Domestic Product
contribution by the industry is determined to be ten per cent. A huge level of employment
opportunities has been also demonstrated by the industry in the economy.
Though, the process of retailing can be also said as the process of buying and the selling of
the goods and the services in the market. The person who is known to be a retailer in the
Target or the JB Hi-Fi is thus a merchant or an agent of the business organization by whom
all the marketing activities are performed in the proper and the realistic manner in the
organization (Evans, et. al., 2016)It consists of a lot of marketing related activities like that of
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producing, buying, selling, risk undertaking, grading and having proper development of the
information.
A lot of retail formats are also present which are determined as very booming segment and
the important method used for the assembling of the merchandise and the same is properly
discussed as below:
 Department Stores: The department stores in the organization are determined to be
the merchandisers in the market era. Customers are offered with various types of
products and the services of the stores.
 Mom -Pop – Stores: These are the retail stores which have their operations on a very
small scale in the business market. These contribute to just a very small segment of
the market and the society. The name and the fame of the retail stores are just because
of the high-quality customer services being offered by these retail stores. Though, it
helps in merchandising for the customers.
 Malls: The most visited retail formats though identified is determined to be the malls
in any of the economy (Mekrazand Gundala, 2016). These are also considered to be
the largest retail formats. Each and everything is offered by the malls which are
wanted and desired by the customers and follows the scrambled merchandising.
 Supermarkets: It is also amongst a very popular retail format. It is basically a type of
grocery store which involves the selling of the household and the food-related
products. The goods and the products are though offered at a reasonable price by the
format.
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Retail Life Cycle and Wheel of Retail theory: Retail life theory is determined to be a
theory which is used by the retailers or faced by the retailers. During the phase, they undergo
a lot of ups and downs in the business or the retailing operations (Mekrazand Gundala, 2016).
A lot of stages are also involved in the cycle. An example can be taken of a company which
has successfully emerged in the market and have the experiencing of huge sales and growth
status. On the other hand, other company would face the decline in the business.
For more understanding there is the theory of the Wheel of Retail which is represented as
below:
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Critical analysis and research demonstrated in country retailing trends: At the present
time, it has been determined that the process of retailing is just not limited to the buying of
goods and the products. The scenario is completely changed in the dynamic environment. It
just means to the providing of a very great and unforgettable experience for the customers.
The various important top trends and their implications are determined to be as described
below:
 Visual Search: This is the process which has the use of the learning by the machines.
It involves the recommendation of the products by the use of the online technologies
which works on the matching basis like that of determining the patterns, shapes, and
very often the textures (Industry, 2013). The results though gained are done with the
too fast process.
 Augmented Reality: This is also determined to be a new and the trending method of
retailing used by the Cotton On Group. In this process, very innovatively the
technology is being transformed into the shopping. It has also made the generation of
the certain mobile apps for the purpose of shopping.
 Delivery and the Returns controlled by the customers: The first and the foremost
demand of the customers at the recent time are related to the availability of the
instantly available products. The retail stores in Australia have a huge control over the
buying hands of the customers and availing them of the required products.
 Predictive and the Deeply Personalized Experiences: It has been determined from
the marketing stage of the sales forces in the year 2017 that around to about 50 per
cent of the customers do the switching of the brands when their needs and the
requirements are not fulfilled by the respective ones. In order to deal with these all,
there is the use of the innovative methods by the organization which has the use of the
machine learning processes which are more customers friendly.
 The Strategy of Reimagined Brick –and – Mortar: It is the trend being used by the
organizations having the use of the refining processing’s (Industry, 2013). As per the
trend, instead of just opening a store, the more focus is laid on the applying the
various strategies which mould the flagships and implements various experiments in
the retailing which are though customer friendly.
An understanding of standards and best practices within the retail industry: A lot of
standards are determined as being too useful for the retail stores in Australia along with the
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Cotton On Group. These can be thus said as the methods of continuing the business in order
to ensure the safety in the goods and the services being rendered to the customers. The use of
the standards is very beneficial to the organization. It also does the reduction of the risk
factors which are prevailing in the retail store (Brown, 2015). There are the mandatory
standards which are compulsory to be adopted by each and every business organization
dealing in the relevant sector. The very essence and the mandatory standards required to be
kept in mind to industries are listed as below:
 Labelling the cosmetics ingredients in a proper manner.
 Warnings about the health on the tobacco packets.
 Standards of safety on the baby dummies.
Other types of standards which are determined are like the voluntary standards which give the
representation of the best quality practice in the business organization. These are specially
maintained by the non-governmental organization of Australia (Kumar, et. al., 2016). These
have the inclusion of the following:
 The International Standard Book Number Standard.
 Motorcycle Helmet Safety Standard AS 1698 – 1988.
 Fishing Line Breaking Load Standard AS 4470 – 1997.
In the recent time, it has been also demonstrated that the retail industries of Australia have
made its shifting towards giving more priorities and adapting the best practices in the retail
industries. It has ensured more safety in the industries. The other best practices are
determined to be as discussed below:
Securing the Payment Systems: It has been determined from the recent survey that the
securing of the payment system the best practice being adopted by the various retail stores.
The payment system is being adopted by a lot of retailers in order to have the leverage on the
EMV standards which are being set by the Euro pay, Visa and the MasterCard. The chances
of risks are reduced in the organizations.
Brand Demonstration: The retailers of Australia have adopted a lot of methods for the
demonstration of the brand in the market era (Grimmer, 2015). It is treated to be among the
best practice. For the purpose, huge training is provided to the employees for having the
proper and the effective demonstration of the brand before the customers.
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Initializing Blended Approach: The use of the blended and an efficient approach is also
termed under the best practice in the organization. It has the use of the digital technology and
also training the employees about the retailing process. It is also known as the Meeting – a –
box approach according to which there is the use of the role plays. The experience though
gained id too interactively and engaging.
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Recommendations: It is very essentially recommended that in the organization it is essential
to have the adaption of the important theoretical framework in order to have the development
of the marketing strategies at a very high level of the market. The description of the same is
as follows:
 Have the Proper Running of the Online Shopping Campaigns: It is a well-known
fact that there is an immense use of the Google and the Online shopping tools by a
huge group of people all around (Colton, 2012). It is required to have the
development of the tour guide on the digital shopping methods.
 The offering of the least alternatives: It is a very essential factor or the strategy
which is required to be adopted by the individuals and the retailers in the era. Fewer
alternatives are to be offered to the customers. It is because when there is the
presence of the more alternatives, it creates confusion among the individuals.
Though, it becomes too paralyzing.
 Loyalty Program is to be made: The loyalty programs are determined to be very
important tools used for the providing of the meaningful insights ion the preferences
of the customers. By adopting the strategy, a very beautiful feeling is gained by the
customers in the retail store which is essential for the growth and the development of
the industry.
 Offering of the Free Sample is to be made: In order to have the better exploring
and marketing of the goods and the products being served by the organization, it is
essential for the retail store that it should provide free samples to the people in the
market before having the same in the excess amount for sale.
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Conclusion
From the above report, it has been determined and properly evaluated that the retailing
segment is a very important part of an economy. The scenario was based on the important
topic of the Retail Management in the market and the business organization of Target being
chosen as the department store and the JB Hi-Fi is determined to be as the discount store in
Australia. It had the clear view of the proper management in the retail store along with the
description of the retail merchandise in the retailing segment. The model of the wheel of
retail and the retail cycle was determined as the very important part of the era. The important
trends of retailing were also discussed in the report.
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References
 Evans, J., Bridson, K., Byrom, J., and Medway, D., 2016. Revisiting retail
internationalisation: Drivers, impediments and business strategy. International
Journal of Retail & Distribution Management, 36(4), pp.260-280.
 Mekraz, A. and Gundala, R.R., 2016. Leadership style and retail store
performance-A case study of the discount retail chain. Journal of Business and
Retail Management Research, 10(2), pp.1-10.
 Industry, A.R., 2013. Economic Structure and Performance of the Australian
Retail Industry.
 Brown, S., 1991. Variations on a marketing enigma: the wheel of retailing
theory. Journal of Marketing Management, 7(2), pp.131-155.
 Grimmer, E.L., 2015. Retail matters: examining the relationship between
resources and performance in small retail firms (Doctoral dissertation, University
of Tasmania).
 Colton, D.A., 2012. The role of retailer mindset and promotional resources in
strengthening online brands. Journal of Brand Management, 20(1), pp.28-40.
 Evans, J., Bridson, K., Byrom, J. and Medway, D., 2018. Revisiting retail
internationalisation: Drivers, impediments and business strategy. International
Journal of Retail & Distribution Management, 36(4), pp.260-280.
 Kumar, V., Shah, D. and Venkatesan, R., 2016. Managing retailer profitability—
one customer at a time!. Journal of Retailing, 82(4), pp.277-294.
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