Retail Management 12th Edition by Barry Berman ,Joel Evans

Exercise 3

Case 1: After the Recession: Preparing for a Brighter Retail Future
This case summarizes some predictions by Stores magazine's editor with regard to major developments and trends that are involved with the consumer, the store experience, the economy, information technology, marketing, mobile and social media, and E-commerce.
The Consumer
Consumer values will change as people work to get their household budgets balanced by reducing debt and by more use of debit cards instead of credit cards (to stay within their spending limits). Consumers will also look for value in purchases by focusing on product quality, longevity, and price. There are signs that more affluent consumers are already spending more freely. This bodes well for luxury-based retailers.
The Store Experience
Stores will decrease in size as retailers seek to reduce operating expenses and seek opportunities for fill-in sites. Pop-up stores will be used due to the large number of retail vacancies and the availability of clearance merchandise from cancelled orders and retail bankruptcies. Retailers will also seek to increase the quality of the in-store experience via demonstrations, sampling stations, and better sales support.
The Economy
High unemployment and housing foreclosure rates will continue to have a major effect on consumer confidence and the retail sales climate. Unemployment will particularly affect low- and middle-income consumers. Value-based retailers (such as discounters and factory outlets) will increase their market share. Retailers with the most promising outlook include Web-based firms, limited-assortment food stores (such as Aldi and Trader Joe's), and experience-based retailers. Stores magazine expects sales to rise between 2.5 and 3.5 percent annually.
Information Technology (IT)
IT will be used to increase in-store productivity by better inventory rationalization and better matching worker availability and store sales by hour and day. IT will also be used to better understand consumer segments and show how consumer behavior varies among a chain's locations. IT infrastructure needs to be upgraded to reflect the number of people with in-store Wi-Fi access, tablets, and smart phones.
Marketing
There will be additional use of Facebook promotions and more mobile and smart-phone promotions and couponing. Value will be defined in terms of a brand or store experience, not just a low price. Stores will increasingly promote their sustainability efforts and achievements.
Mobile and Social Media
Shoppers may trust their favorite brands; but they trust customer ratings even more. Shoppers will increasingly look up prices, research items, and read product and store reviews via smart-phone apps. QR codes will be increasingly used in ads and commercials.
E-Commerce
"Searchandising," the merger of search technologies and merchandising capabilities, will occur more often. This is the next logical step for the use of Web analytics and product recommendations by progressive retailers. Online sales will grow significantly. Some analysts believe E-commerce will eventually account for 20 percent of total retail revenues as shoppers spend more money online.
Questions
1. How can a retailer respond to the trends identified in this case to best reach consumers who are still having a tough time as a result of weak economic conditions
2. What other trends should retailers consider in planning for the future
3. Discuss the pros and cons of enhanced technology from both retailer and customer perspectives.
4. Describe how a conventional supermarket can upgrade its in-store experience.