Comment on the changes that have happened to retailing.

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Comment on the changes that have happened to retailing

Over the past fifty years retailing has changed a lot. This change has occurred naturally with the great change in people’s incomes and spending patterns. People nowadays have enough money to spend on things other than the basics. People have money to spend on ‘luxuries’ and hi-tech equipment that were not bought by people fifty years ago.

The increase in people’s spending money means that all item previously considered ‘luxuries’ can be aimed at a much larger market. This, however, also means that the prices need to be a lot lower. This decrease in price does not mean that the profit is necessarily lower, because the demand increases. The large market for such products means that they can be ordered in bulk and the retailer can negotiate lower prices with the manufacturer, which will in return mean lower prices for the customer.

Nowadays, the retailer, especially if it is a successful multiple will invest in new equipment, which will lower costs, meaning higher profit margins and/or lower prices for customers. Successful multiples can also invest in training staff on how to deal with customers and create a friendly atmosphere. This will encourage the customers to return more often because of the friendly staff. The company can also train the staff to deal with after-sales services, installation and technical advice it is relevant to the product they offer, e.g. for hi-tech equipment, double-glazed windows etc. Although this is quite expensive to do, it will in return increase sales and the number of regular customers. Customers nowadays have become more trusting towards brand names that are associated with quality. The customer will trust a retailer that offers a good product as well as a good service.

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Over the past 50 years the location, in which a retail store is found has also changed immensely. In the past, you could visit your local high street, town centre or local shop. Nowadays as well as those three, many retailers are choosing out of town shopping developments that offer a much cheaper price for the land and a lot more parking space. Although they are mainly designed for people with cars, some offer their own bus/train services to encourage people to visit them. A development in the outskirts of town is often suitable for DIY stores because people need ...

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