Notes on Theories of Retail Change

Theories of Retail
Change
How Retailers grow, develop, expand, and change • Theories of retail change show patterns in retailing over time…
What is useful about looking at the past?

Theories of Retail Change

Cyclical

Environmental

Conflict-4 stages

Wheel of Retailing
Retail Life Cycle
Retail Accordion

Evolution Theory
Institutional Theory

•
•
•
•

Shock
Defensive retreat
Acknowledgement
Adaptation

Marketing man

http://www.youtube.com/watch?v=E29A7BK z9B8 Wheel of retailing chart

Retail Life Cycle innovation growth

maturity decline Retail Accordion
O Retail development over time to

merchandize range
O tendency for retail organizations to move
O alternately towards specialization and diversification over time

Evolution Theory
Survival of the Fittest

Evolution Theory
O Design Space
O the size and distribution of the population
O the need structure for goods, which is related

O
O
O
O

to demographic variables such as family size and income regional income and income distribution technology government regulation social visibility of the design space

Institutional Theory

Conflict Theory
Examples… Amazon, Macy’s online shopping
O Shock.
O Defensive retreat.
O Acknowledgement.
O Adaptation.

Class Exercise-step 2
O Review the theory in Chapter 3 (Ferie)
O Choose a theory that best reflects the

current position of your retailer.
O Be sure to diagram the theory and be able to explain why you believe this
O Tools- large paper and pens

Next time
Bring the completed assignment 3, done in teams.