Retail industry risk assessment
Western Europe:
A strong external trend on the Western European markets is a changed demographic structure that changes customer requirements. This in turn means new challenges for retail companies in order to satisfy new customer needs. For instance, from the German market the following demographic changes are expected to influence the retail industry;
The total number of inhabitants is expected to decrease which means a continued and intensified competition for these customers.
The share of older people will steadily increase, which is expected to increase the demand for healthy food and home deliveries in the future Increased share of 1 and 2 people households, with a higher degree of households with single parents. This development is expected to increase demands for the convenience shopping
Another trend affecting the need for convenience shopping, is the increasing rate of women that are working outside their homes
An even more multicultural society makes the demand profile of the customers more diversified
The gap between richness and poorness are increasing which speaks for further segmentation of the retail market
The retailing industry has for a long time been local in comparison to other industries. For instance, the 15 largest companies in the pharmaceutical industry represents 70% of the tot al sales worldwide whereas today some of the largest European retail companies have at most succeeded to come over 50% of their turnover in foreign countries. However, in recent years the internationalization has also slowly started to accelerate
Asia:
As Asia’s current environment of high inflation and rising prices drives customers to seek value, private food labels have new opportunities to
A strong external trend on the Western European markets is a changed demographic structure that changes customer requirements. This in turn means new challenges for retail companies in order to satisfy new customer needs. For instance, from the German market the following demographic changes are expected to influence the retail industry;
The total number of inhabitants is expected to decrease which means a continued and intensified competition for these customers.
The share of older people will steadily increase, which is expected to increase the demand for healthy food and home deliveries in the future Increased share of 1 and 2 people households, with a higher degree of households with single parents. This development is expected to increase demands for the convenience shopping
Another trend affecting the need for convenience shopping, is the increasing rate of women that are working outside their homes
An even more multicultural society makes the demand profile of the customers more diversified
The gap between richness and poorness are increasing which speaks for further segmentation of the retail market
The retailing industry has for a long time been local in comparison to other industries. For instance, the 15 largest companies in the pharmaceutical industry represents 70% of the tot al sales worldwide whereas today some of the largest European retail companies have at most succeeded to come over 50% of their turnover in foreign countries. However, in recent years the internationalization has also slowly started to accelerate
Asia:
As Asia’s current environment of high inflation and rising prices drives customers to seek value, private food labels have new opportunities to