Modern retail is mining for growth. While the industry is seeing itself in a mixed bag of new outlets springing up, and sale going on round the clock, retailers are revisiting their current strategies.
stores today have become a part of the customers shopping experience. A crucial
factor influencing the customers feelings is the retail space itself. Earlier,
retailers developed their own models based on their retail expansion or
contraction strategies. Decisions were mainly influenced by their belief on
increase in the floor space results in the increase in sales volume. Their
chase for space consequently ended up in a distortion. Retailers see themselves
in a Catch-22 situation. Customers prefer small stores while they demand
variety merchandise, good prices, and convenience in shopping which chain
stores or big malls offer.
Physical retail stores need to compete with the emergence of online and multichannel retailing. With a wake of such an onslaught, retailers are focusing more on resetting their store portfolios. They are either downsizing or right sizing. Though, it has been in practice for a long time, the strategy has picked up pace recently.