LIFE CYCLE OF RETAILING

LIFE CYCLE OF RETAILING Submitt Submitted ed by by Ratna Ratna Kushwa Kushwah h ROLL NO. 42

Retail Life Cycle 

The retail life cycle is the process of growth and decline that retail outlets, like products, experience, which consists of the early growth, accelerated development, maturity, and decline stages.

Retail Life Cycle 

theory asserting that institutions -- like the goods and services they sell -- pass through identifiable life-cycle stages: innovation, accelerated development, maturity, and decline. Retail institutions pass through identifiable life stages A

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introduction

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growth

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maturity

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decline

Understanding retail life cycle theory 

It

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At

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says that the retail developments pass through stages. birth , there are slow rates of growth due to limited resources and experiences. This is followed by a time of rapid growth as efficiency and experience increase .

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Eventually

growth will level off into the mature stage due to increased costs & competition and and reduced efficiencies.

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In

a mature market the competition remains intense , growth slows and profits begin to fall.

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continued decrease in market share and profitability will eventually cause the development to decline and, if the situation worsens , ultimately to withdraw from the market. A

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The less competitive companies, which have previously entered the market, will be forced out early as the market goes through a shake- out period. An

example of a company which has had problems in relation to the life cycle is Woolworths. In an attempt to remain competitive its range was expanded to a point where the offer was undefined and it became a store of last resort.

the group realized it was not adequately providing for the needs of the contemporary consumer and survived only because it recognized the value of adopting a focused strategy.

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