Hk2042 Retail Management - Department Assessment Answers

Individual Assignment The changing fxe of retailing: Now department stores and discount stores are evolving. This report should cer the historical development of department stores and discount stores in any country of choice. Obviously you would start be defining both of these types of retail institutions and then describe what merchandise they carry and how they market to distinct types or market segments of retail customers. You may like to discuss mergers, diversification and downsizing in your assignment as well as cost containment and value-driven retailing being driving forces behind the evolution of these institutions into the retail outlets of tomorrow. Do you think retailing will be different in 5 years' time, or in 10 years' time? Why—what do you think will make these Noes of store different? Do you think there will be other types of stores that will open up in different markets? Use examples wherever possible to substantiate your opinions in the report. In your answer you also need to refer to the wheel of retailing concept, and the retail life cycle. You will also discuss ways in which shops assemble their merchandise for consumers, such as scrambled merchandising. 

Answer

Retail Management

Introduction

This piece of work will discuss the changing phase of department stores and discount stores in the United States of America. It will start by defining these two terms: department stores and discount stores.

Definition of Department Stores and Discount Stores

Evolvement of Department Stores and Discount Stores in the United States

Retailers have been greatly relying on giving discounts in order to propagate sales and to make shoppers buy products from their in-stores as well as online. Discounting is a very effective way of stock shifting but if a retailer over-uses it carelessly, it can change the way the customers view him or her hence violating the reputation and bringing the business down. Before offering documents, a retailer should consider other means which can also bring value to the shoppers. A retailer should have employees who have experience and expertise in the handling of customers. (Bolton and Shankar, 2018). Good and reliable suppliers should be connected to the retail for a proper, continuous and reliable supply of products. Retailers would have a bright future if they understand the needs of the shoppers. Some retailers in the United States have started planning on how to acquire information about customer history of shopping, their history of website surfing and other customer behaviors in order to offer what customer best requires. They consider customer’s history of browsing sessions for the purpose of determining the exact commodities that customers require and also differentiate whether the shopping is done for oneself, for a friend, a sibling or a parent.

Due to the highly competitive market today, it is not enough anymore for retailers to remain in a dominance of a single channel. For the retailers to survive and succeed, a lot of strength has to be imparted in online as well as in stores. Due to this reason, many retailers tend to change to mergers in order to survive in the market. Diversification of retail stores requires the building of new products, new markets exploration and risk-taking. This is one of the sure potential ways of remaining competitive in the market. (Brea, Casadesus and Grifell, 2015). Today’s landscape of retail has been filled with newness and an inventory which is ever-changing and diversifying to break traditional boundaries. Merchandisers have been involved in hard work than before to build interesting partnerships with successful celebrities and also the competing brands.

Retailers may use different ways to assemble merchandise to their customers. To establish the right strategy of merchandising may depend with the qualities of the product, the sector, the space available and the mode of displaying the products whether digital or physical (Millhouse, Burleson and Meredith, 2017). Scrambled merchandising occurs when a retailer sells scattered products which are unrelated and which may not relate to the original focus of the store. For example, a customer may go to a drug store but can still buy other products such as groceries from it (Breslow and Swafford, 2015). Digital merchandising is where promotional activities aiming at selling products are done online. On contrary, retail merchandising involves advertising and making sales of products physically at the vicinities of the store (Paolini, 2017).

Conclusion

In conclusion, the way retail stores used to operate in the traditional times is not the same way they are operating presently, and move advancements and developments will continue being laid down, making retailing to be better than today. There is a phenomenon known as mobile commerce which has spread worldwide, where customers shop at their own homes or anywhere regardless of where they are in the world. Since nature hates vacuum, there will always emerge new concepts and new ideas will transform this sector of retail (Yadav, Sharma and Tarhini, 2016).

References

Breslow, D.S. and Swafford Jr, J.W., 2015. LED lighting assembly and method of lighting for a merchandise display. U.S. Patent 9,222,645.

Coibion, O., Gorodnichenko, Y. and Hong, G.H., 2015. The cyclicality of sales, regular and effective prices: Business cycle and policy implications. American Economic Review, 105(3), pp. 993-1029.

Paolini, M.A., International Business Machines Corp, 2017. Consumer representation rendering with selected merchandise. U.S. Patent 9,779,447.

Reimers, V., 2014. A consumer definition of store convenience (Finally). International Journal of Retail and Distribution Management, 42(4), pp. 315-333.