Critical problems of Retailing

1. 5-Capital markets

1.1. The organized retailing is capital intensive therefore capital market is important. Competitive Forces Consolidation, Concentration, Substitution -The retailer has to decide the course of action in light of the competition

2. 6-Saturation

2.1. Considering the size of market and number of competitors one has to take into account the problem of saturation before entering or expanding the business

3. 7-Impact of Discounters

3.1. Discounting is one of the effective practice resorted by retailers to attract customers however there need to assess the issue of margin compression that will tell upon the profitability of the organization.

4. 8-Labor relations and productivity

4.1. As the size of store/ organization increases the problems relating to labor relations and productivity becomes critical.

5. 1-Market Forces: Shopper Lifestyles & Behaviours

5.1. This is one of the most critical areas. The retailers need to assess the present and behaviors of shoppers

6. 2-Technological changes

6.1. The technology is improving and changing rapidly. The retail industry has to adopt the new technology at the earliest. The competition will take place in this area

7. 3-Globalization

7.1. is behavior to a great extent. It has also affected the supply side and the nature of marketing

8. 4-Speed

8.1. The customer has no time to wait. The speed is the urgent need in every area whether it is the question of supply chain, adoption of technology, convenience and entertainment provisions of stores, or the customer service and customer care