Transcript REAILING TRENDS IN THE USA

RETAILING TRENDS IN THE USA
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There is unprecedented growth
Store closures
Mergers, acquisitions and consolidations
Reinvention/redefinition of retail
corporations
New target markets
Contemporary marketing practices perhaps
changing – paradigm shift in marketing? (see
Lindgreen, Palmer and Vanhamme, 2004).
RETAILING TRENDS IN THE USA
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Most of the trends have come about as
a result of shifts in the marketplace?
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“… US retailers have been more
responsive to market shifts than ever
before…”
Swinyard, W.R. (1997), Retailing trends in the USA: competition, consumers, technology
and the economy, International Journal of Retail & Distribution Management, Vol.25,
Issue 8 – see also, http://www.emerald-library.com
RETAILING TRENDS IN THE USA
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The trends have occurred as a result of
several conditions including:
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US metropolitan/cities areas are largely
over-stored with retailers
battling/“hustling” for the consumer’s
dollar -- fierce competition
Based on Swinyard, W.R. (1997)
Retailing trends in the USA
contd.
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There has been an unprecedented number
of mergers/acquisitions and consolidations
which during the 1980s and 1990s led to
increases in market power through retailer
sales dominance and vertical integration.
A growing emphasis on professional retail
management (i.e., qualifications in
retailing/marketing, merchandising etc.
becoming important)
Retailing trends in the USA
contd.
There is an increase in financial power of retailers
as a result of the foregoing and expansion in the
economy.
What about issues concerning PESTLE relating to
the above point?
Financial powers of Wal – Mart (some refer to it as
“the evil empire”) and Sams Club, Home Depot,
Circuit City, Toys “R” Us, Costco, McDonald, Visa
card, MasterCard, Discover card?.
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Retailing trends in the USA
contd.
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There is an increase in information –
technology – leading retailers to enjoy
economies of scope and scale – the case of
paperless transactions.
Based on Swinyard (1997)
Retailing response to the changing
trends/environment.
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The target market (attractive?, profitable?)
The retailing environment (forces at stake
are competition, the consumer, technology,
PESTLE)
The retail mix (location, operations,
merchandising , pricing, image,
people/participants and promotion).
Based on Swinyard (1997)
The consequences of retailing trends.
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By and large, the environmental trends
presented earlier can be described as
mediators of retailing practices/tactics (they
are the causes of some significant
trends/changes in retailing).
Based on Swinyard (1997)
The consequences of retailing trends.
Micromarketing
This refers to the process of getting the right
products in the right stores at the right time
All customers are not equal – hence customer
specific marketing (see Swinyard, 1997), and relationship
marketing – encompassing: transaction
marketing, e-marketing, interaction marketing,
network marketing, pluralistic marketing (see
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Lindgreen, Palmer and Vanhamme, 2004).
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The case of Loyalty cards, Store cards, links with credit cards, store
(own) brands etc.
The consequences of retailing trends.
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Globalization and new formats of retailing –
Airport retailing, retailing at train/bus/sub-way
stations in NY, DC etc. DFW Airport retailing.
Wal-Mart in UK (acquisition of ASDA), China,
Mexico, South America) -- “running out of stream
in the US for its growth?”
Mc Donald’s wants an outlet wherever people live, work, sleep, play or
gather.
Woolworth’s failure in UK… now has entered Africa.
South African retailers moving to other countries in Africa.
Tesco stores from the UK in continental Europe.
Based on Swinyard (1997)
The consequences of retailing trends.
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The Issue of NAFTA, GATT (WTO), EU
(EEC) expansion etc. etc.
The question is:
Where do we go from here?
The consequences of retailing trends.
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Quick response and cost reduction (quick fixes)
Every-day-low-price (EDLP).
This was put forward by Sears in 1992. It planned
to compete head-to-head with discounters such as
Wal-Mart, and Target.
Sears failed in this strategy -- Low Prices not the
only factor explaining retail success -- now Sears
offers “Come see the softer side of Sears”.
The consequences of retailing trends.
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Ethnic retailing, age-related and popular culture
related merchandising changes.
The ethnicity and diversity of US consumers
increase the need for micro-marketing and micromerchandising.
There will be establishment of differential appeals
for ethnic shoppers, the baby boomers (born
between 1946-1964), and their children (the “baby
busters”), the “Pepsi Generation”, Generation X,
Y and Z - a teen and youth oriented culture –
single living, hedonistic lifestyle etc.
Based on Swinyard (1997)