Week 1: Retailers in Trouble

It has become apparent in the economies recent years that retailers have been forced to transition their business to fit the changing needs of the consumers.  After the recession most retailers began to decline in sales due to a number of reasons but primarily due to poor business strategies and prices being to high for consumers. 

Current retailers are finding it difficult to compete with retailers such as warehouse club retailers such as Walmart and Target.  These retailers seem to prosper more than others because they pride themselves on  "one-stop-shopping." Since most people are short on time they enjoy the idea of being able to get everything they need in one stop.  Retailers such as Walmart and Target have all departments such as produce/grocery, cosmetics, clothes (for everyone in the family), electronics, houseware, etc.  Having everything in one location for a cheaper price is what is attracting consumers more than anything in today's economy.  Harsher times call for tighter budgeting and that is what brings people to stores such as Walmart and Target.

As the new year begins certain retailers are being forced to adapt and change with the times.  One retailer in particular is Kelloggs Cereals.  Kelloggs announced that they will most likely be pulling cereals such as Corn Pops.  Competitors are promoting healthier cereals in hopes to decrease childhood obesity as well as obesity in adults.  Kelloggs realizes that majority of its cereal is not as healthy as emerging competitors and has been forced to recall some cereals and try to create newer and healthier ones.

Week 1: Types of Retailers

After beginning to explore retailing I was surprised by how many different types of retailers there are. I always just thought of retail as purely stores providing goods to customers.  In reality, different retailers are created to address different target markets.  Places of retail can be examined and compared by different fields such as size, variety, accessibility, price, etc.  All of these elements are crucial in comparing and contrasting different retailers.  By being able to compare and contrast the retailers one is able to figure out who a store's competitors are.  It also allows business prospects to open different types of retail depending on which market has the most demand and room for growth.