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Retailing Assignment

1. Describe the wheel of retailing theory of retail competition. What is the theory?s major strength and weakness? Does this theory do a good job of explaining what has happened to retailers in your hometown?

2.You have recently been hired as the assistant manager for a large regional mall in Sacramento, California. One of the first things you notice on an early inspection tour of the mall is a lack of benches in the common areas for seniors and parents with children to sit on so that they can rest while shopping. It is said that benches reduce the selling area that the mall can rent to various temporary vendors, such as arts-and-craft shows. You also find a memo from your predecessor banning the early opening of the mall commons so that elderly exercise groups cannot use the mall for walking and exercise classes. Prepare a one page memo agreeing o disagreeing with the current mall policy and explaining your reasoning.

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1. Describe the wheel of retailing theory of retail competition. What is the theory?s major strength and weakness? Does this theory do a good job of explaining what has happened to retailers in your hometown?
The wheel of retailing theory of retail competition illustrates how new types of retailers enter the market as low-cost, low-status, only essentials operations. However, these retailers get more sophisticated, and elaborate facilities which increase their costs and make them vulnerable to new low-margin retail stores.
No, in my home town this wheel of retailing theory has not been observed by my. Those stores that were perceived to be low cost grocers have remained so for several decades. There is no change in d├ęcor or improvement in facilities. On the other hand new upscale expensive stores have opened in posh localities. These stores have always charged higher prices and have never competed with no frills stores. In short the ...

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