THEORIES OF

RETAIL
DEVELOPMENT
By
RITA PRUSTY
IBCS
THE PROCESS OF RETAIL DEVELOPMENT
REVOLVE AROUND THE IMPORTANCE OF:
 Competitive pressures
 Investments in organisational capabilities
 Creation of sustainable competitive
advantage
THEORIES ARE:
1. Environmental Theory
2. Cyclical Theory
3. Conflictual Theory
ENVIRONMENTAL THEORY:
 Change in retail is attributed to the change
in the environment in which the retailer
operate.
 The various influences of the external
environment are:
1. Technological
2. Economical
3. Demographic
4. Legal & Political
5. Socio- Cultural
CYCLICAL THEORY:
 Where change follows a pattern and phases
can have definite identifiable attributes
associated with them.
 THE WHEEL OF RETAILING:

Entry Phase
Vulnerability Phase

Trading Up Phase
CONFLICT THEORY:
The developments in retailing are as follows-
1. Thesis- Individual retailers as corner shops
all across the country
2. Antithesis- A position opposed to the thesis
develops over a period of time
3. Synthesis- A blending of the thesis and
antithesis
LIFE CYCLE IN RETAIL:
1. Innovation -10 yrs (African markets)
2. Accelerated Growth -15-25 yrs (Indian
Markets)
3. Maturity- 5-10 yrs (South Asian markets)
4. Stagnation – 5-10 yrs (Developed markets)