RETAIL INSTITUTIONS

THEORIES OF RETAIL INSTITUTIONAL CHANGE

The wheel of Retailing  Dialectic process  Natural Selection

THE WHEEL OF RETAILING

HIGH END STRATEGY

MEDIUM STRATEGY

LOW END STATEGY

LOW–END STRATEGY
       

Low prices Low profit margins Low rent location Crowded store interior Self service More promotional pricing Low cost interior decoration Price sensitive customers

HIGH – END STRATEGY
     

High prices High profit margins High rent location Spacious interiors Product demonstration High class interiors

DIALECTIC PROCESS
    

Medium strategy of the wheel Average margins Moderate prices Value & service conscious consumers Mutual adaptation by opponents- competitor challenges with a differential advantage, earlier firm adopts strategies to negate it – hence both almost similar

NATURAL SELECTION
  

Based on Darwin’s Theory of Evolution Survival for the fittest – adaptation Adapting 4 P’s according to D-E-N-T-Po Le – So Cult changes
D So-Cul 4 P’s Po-Le T N E

CLASSIFICATION OF RETAILERS
RETAILERS

STORE BASED

NON STORE BASED

STORE BASED

OWNERSHIP

STRATEGY MIX

SERVICE VS GOODS MIX

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