High are detrimental to the growth of retail industry? Can a different business model ensure that the retail industry manages to survive and prosper in a fiercely competitive market place in spite of high input cost?
Clarification added November 17, 2007:
High real estate prices are detrimental......
Answers (3)
Simon H
Visibility Extremist and Social Media Campaign Manager
Best Answers in: Using LinkedIn (81), Business Development (9), Equity Markets (5), Web Development (5), Customer Service (4), Mentoring (4), Government Policy (4), Professional Networking (4), Advertising (3), Blogging (3), Software Development (3), Purchasing (2), Education and Schools (2), Auditing (2), Compensation and Benefits (2), Staffing and Recruiting (2), Internationalization and Localization (2), Viral Marketing (2), Lead Generation (2), Business Analytics (2), Organizational Development (2), Project Management (2), Product Design (2), Career Management (2), Professional Organizations (2), Ethics (2), Small Business (2), Starting Up (2), Enterprise Software (2), Commercial Real Estate (1), Regulation and Compliance (1), Job Search (1), Conference Planning (1), Accounting (1), Foreign Investment (1), Financial Regulation (1), Government Services (1), Personnel Policies (1), Exporting/Importing (1), Guerrilla Marketing (1), Mobile Marketing (1), Search Marketing (1), Corporate Governance (1), Change Management (1), Planning (1), Bond Markets (1), Currency Markets (1), Futures Markets (1), Hedge Funds (1), Non-profit Fundraising (1), Manufacturing (1), Packaging and Labeling (1), Quality Management and Standards (1), Supply Chain Management (1), Personal Investing (1), Retirement and Estate Planning (1), Personal Real Estate (1), Wealth Management (1), Market Research and Definition (1), Engineering (1), Green Business (1), Biotech (1), Telecommunications (1)
Yes is the answer.
But market share will have to drop where price is the only regulator for sales..... these sales will be lost.
However if after sales service and the quality are better the price can be raised... once this differential in a.s.s & qu are recognised by the purchasers.
We still produce goods in the UK... despite huge wages.
Just in lower volume.
Hope this helps.
Simon
David M
Technology Focused Industrial Engineer
Best Answers in: Quality Management and Standards (3), Inventory Management (2), Supply Chain Management (2), Business Development (1), Business Analytics (1), Positioning (1), Energy and Development (1), Biotech (1)
Real Estate costs are extremely detrimental to the retail industry. Already we see a shift where retail stores need to be successful in e-commerce as well as their brick and mortar stores. I believe that as time marches on there will be a shift back toward boutique stores that specialize in different categories. I believe even malls will have trouble long-term without new business models.
The big box stores like Dillard's, Macy's and JC Penney are going to have the hardest time because their value proposition was that they had everything under one roof. The internet is becoming their biggest competitor and proving that they don't and can't have everything under one roof.
Tom N
Sr. Account Manager @ PSI Engineering
Best Answers in: Using LinkedIn (9), Supply Chain Management (5), Manufacturing (3), Packaging and Labeling (3), Inventory Management (2), Green Products (2), Regulation and Compliance (1), Certification and Licenses (1), Occupational Training (1), Resume Writing (1), Financial Regulation (1), Government Policy (1), Internationalization and Localization (1), Offshoring and Outsourcing (1), Customs, Tariffs and Taxes (1), Lead Generation (1), Sales Techniques (1), Change Management (1), Labor Relations (1), Quality Management and Standards (1), Distribution (1), Engineering (1), Positioning (1), Career Management (1), Communication and Public Speaking (1), Enterprise Software (1)
Hi Rajendra,
There was a book written in Canada, The Apprenticeship of Duddy Kravitz, where the lead character's grandfather told Duddy that, "a man without land is a nobody," so he worked hard to purchase land for his dream... I have also heard the saying, "purchase land because they don't make any more."
Retail is not the only sector in our economy that suffers from real estate costs. Different concepts in the retail brick and mortar will attract the customer. e-Retail is becoming the main competitor to B&M retail and may one day surpass it. However, an old market is always nice to stroll through and shop at, so I believe retail will always overcome different overhead issues that make business always a struggle.
Cheers...
