Marketing Communications

Chapter 2 : Retail Institutions

Theories of Institutional Change

Wheels of Retailing
Dialectic Process
Retail Accordion
Natural Selection

Classification of Retailers

Store-Based retailers (by ownership, by strategic mix, by service Vs goods retail mix)
Non store retailer (Traditional on-store retailers, Non traditional)

Chapter Summary

To survive in the fast evolving retailing industry, retailers should have a fair idea of various retail store formats and their advantages and disadvantages. Retail institutions should continuously adjust their store formats to match the changing market environment. There are many theories, which try to explain the evolution of various retailing formats. Some of these theories are: wheel of retailing, dialectic process, retail accordion theory and natural selection theory. A retailer can use a store based or non-store retail format to serve its target market.

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