Retail Theories

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This ppt is on the three principles or theory of retail


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Presentation Transcript

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theories By: Alok Sinha Ashish Tiwari Bishwajeet Kurrey Jitin Dwivedi Yogesh Rathore

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CONTENTS Introduction Environmental theory Cyclic theory Conflict theory Bibliography


THEORIES OF RETAIL Three main categories of theory: Environmental theory Cyclical theory Conflict theory

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ENVIRONMENTAL THEORIES “Where a change in retail is attributed to the change in the environment in which the retailers operate.” “Where a change in retail is attributed to the change in the environment in which the retailers operate.”

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Convenience store General Stores Kirana Store Mom & Pop Store Hyper Market


ENVIRONMENTAL THEORIES The various influences of the external environment:- - economical - socio-culture - demographic - technological - political

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There are two dominants of environmental theories Evolution theory Institutional theory

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CYCLICAL THEORIES “Where change follows a pattern and phases can have definite identifiable attributes associated with them.”

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CYCLICAL THEORIES The most common especially the Wheel of Retailing developed by McNair in 1958. McNair’s hypothesis attempted to explain the evolution of retail institutions in a wheel.

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Innovative retailer Low status and price Minimum service Poor facilities Limited product offering Traditional retailer Elaborate facilities Higher rent More locations Higher prices Extended product offerings Mature retailer Top heavy Conservative Declining ROI Entry phase Trading up phase Vulnerability phase The Wheel of Retailing 1 2 3

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Innovation Growth Maturity Decline Retail Life Cycle

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Retail Accordion The contraction and expansion of merchandise is called retail accordion

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CONFLICT THEORIES “Where the competition or conflict between two opposite types of retailers, leads to a new format being developed.”

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CONFLICT THEORY Conflicts always exists between operators of similar formats or within broad retail categories. It can be applied to development of retailing as follows:- - Thesis - Antithesis - Synthesis

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Theory of Retail Conflict

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BIBLIOGRAPHY Retail Management By Swapna Pradhan Contours of retailing Management By S.A. Chunawalla

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