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RETAILING TRENDS IN THE USA

RETAILING TRENDS IN THE USA. There is unprecedented growth Store closures Mergers, acquisitions and consolidations Reinvention/redefinition of retail corporations New target markets

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RETAILING TRENDS IN THE USA

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  1. RETAILING TRENDS IN THE USA • 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).

  2. RETAILING TRENDS IN THE USA • Most of the trends have come about as a result of shifts in the marketplace? • “… 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

  3. RETAILING TRENDS IN THE USA • The trends have occurred as a result of several conditions including: • 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)

  4. Retailing trends in the USA contd. • 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)

  5. 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?.

  6. Retailing trends in the USA contd. • 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)

  7. Retailing response to the changing trends/environment. • 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)

  8. The consequences of retailing trends. • 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)

  9. 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 Lindgreen, Palmer and Vanhamme, 2004). • The case of Loyalty cards, Store cards, links with credit cards, store (own) brands etc.

  10. The consequences of retailing trends. • 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)

  11. The consequences of retailing trends. • The Issue of NAFTA, GATT (WTO), EU (EEC) expansion etc. etc. • The question is: Where do we go from here?

  12. The consequences of retailing trends. • 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”.

  13. The consequences of retailing trends. • Ethnic retailing, age-related and popular culture related merchandising changes. • The ethnicity and diversity of US consumers increase the need for micro-marketing and micro-merchandising. • 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)

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