Page 8 - RETAILING Amimah Talib L

wheel of RETAILING

The Wheel of Retailing explains in simple terms retail
marketing process whereby original low-price discounters
upgrade their services & gradually increase prices. As they
evolve into full-line department stores, a competitive
opportunity develops for new low-price discounters to develop
& the process continues with the next generation. It also
speaks about the fact that how new businesses & firms tend to
enter the market as fairly low status, low margin & low price
operators, thereby continue with this limited positioning &
strategies to compete successfully with the larger & well
established firms. With the course of time, these new arrivals
acquire sophisticated technologies & facilities to gain better
market shares. Finally they emerge as successful retailers
with greater foreign investments, subsequent rise in the
retail's operating costs eventually rising prices & operating
margins.