1. 4-The Role of Social Factors
1.1. Changes in social values and trends impact the goods retailers sell and how retailers relate to consumers. The retail industry is often under pressure to develop and implement socially responsible business practices, such as selling environmentally friendly products, placing warnings or restrictions on potentially harmful goods, and removing recalled or controversial products from the shelves.
1.1.1. Again, government and social factors overlap in many areas including employment discrimination and, in some states, the recognition of same-sex partners as legally entitled to employer-provided benefits. Retailers that fail to conform to new social norms often lose business to companies that are willing to adapt to changing societal values
2. 3-The Role of Economic Factors
2.1. Retail sales are driven by the economic environment. A robust economy correlates to an increase in consumers' disposable income, increasing sales and allowing retailers to sell more valuable goods, such as high-end electronics
2.1.1. On the other hand, a sluggish economy decreases consumer confidence and can cause people to spend less, leading to declining sales and forcing retailers to lower prices. Economic and governmental factors often overlap in areas such as corporate taxation, import and export laws, and inflation, which can decrease consumer purchasing power.
3. 1-The Role of Technology in the Macro Environment of retailing
3.1. Technology not only creates new products for retail companies to sell, but also plays a major role in changing the way retail companies do business. Technological advancements such as the Internet offer retail customers additional shopping options. Technology also opens new retail markets, such as the Home Shopping Network and web-based retailers such as Amazon.com. Barcoding and computerized billing systems have improved the retail industry by allowing retailers to develop new processes that increase efficiency
4. 2-The Role of Government
4.1. Laws, regulations and other government policies can have a number of positive or negative effects on the retail industry. Government assistance, such as government-backed loans and subsidies, can help fledgling retailers grow or allow an established company to keep costs low for consumers.
4.1.1. However, government policies can also hinder businesses by imposing regulations that increase costs, such as requiring the development and integration of new systems or procedures or establishing a minimum wage that small retailers may not be able to afford. The retail industry also relies heavily on government-supported road, rail and water transport infrastructure to move goods and bring customers to retail locations.