Contemporary Retailing Lecture 1. Strategic Perspectives SLIDES.pptVIP

* * * * * ? ? * * * * * However: ‘Despite the popularity of globalization in retailing, most retailers are still struggling to develop competencies to succeed in global markets. To what extent should the ‘original’ format be adapted [in moving to another national market to take account of differences there] is a major issue.’ (Kumar, 1997) Integration Retailers becoming increasingly integrated, particularly evident in supply chain. Manifested by: More active collection of customer information and its use in the implementation of marketing and other activities by both retailers and suppliers Closer relationships and collaborative operations between retailers and suppliers with much freer flow of information between the two, has arguably allowed information as a substitute for the need to hold lots of stock as more flexibility in terms of sourcing and manufacture can be achieved. Multi- and Omni-channel retailing Information Retailing has become a technologically intensive industry, transforming how retailers: Configure the supply chain Manage their store operations (particularly where this may involve thousands of stores across the world) Interact with customers (as data processing and storage costs plummet, thereby giving retailers the facility and ability to track their customers on an individual basis) Recognition ‘Today’s most successful retailers are not just excellent merchants but they are developing a unique and powerful brand image’. (Kumar, 1997) Retailer own-brand benefits: They deliver greater profits and control They provide increased leverage vis-à-vis manufacturers They help develop a distinct store image A strong retailer brand image has positive impact on recruitment of managerial employees Innovation Many of the above factors can be easily copied by competitors and therefore retailers must engage in constant innovation to try to stay ahead of the game - as well as being forced to innovate by a turbulent environment where customers