Hi! Thanks for the question.
Since we will be dealing with different perspectives on the issues in
the retail industry, importance of individual problems will depend on
the authors and researchers. Here are some of the articles I was able
to find enumerating issues that are considered for the competitiveness
of a particular company.
Deloitte Consulting Research:
1. Rising Prices and Interest Rates
?The current reality is that the majority of retailers continue to
struggle to keep prices low in the face of rising input prices. It is
the innovators in the industry who are the best positioned to benefit
from the increased consumer spending.?
2. More Government Scrutiny
?Additionally, companies should continue to monitor costs at all
levels to help improve organizational performance. And with more
Americans making health, privacy, nutrition and food safety higher
priorities, governments are more closely monitoring these areas
as well.?
3. Proliferation of Retail
?Increasingly, it seems as if you can buy just about anything just
about anywhere. In an attempt to broaden their appeal to shoppers,
retailers are offering a wider array of products and services, but
this is creating channel blurring.?
?Retail Industry Top 10 Issues 2004-2005?
http://www.deloitte.com/dtt/cda/doc/content/US_CB_RetailTop10%282%29.pdf
----------------------
NRF and Bearingpoint Research:
2004-2005
Our next two links will discuss the findings of Bearingpoint and the
NRF about the issues confronting the retail industry today. The full
report is available but is not for free and must be purchased
separately. However; based on these articles, we can have an idea of
what most retailers are looking at.
1. Economic effects on purchasing power of the consumer.
?NRF's retail sales forecast is restrained this year for a variety of
other reasons. ?This year, consumers will be under increased financial
pressure due to higher energy costs and slow wage growth,? said NRF
Chief Economist Rosalind Wells.?
?Discounters, on the other hand, will continue to be challenged as
their core consumers are most affected by the higher energy costs and
slow income growth.?
?NRF Forecasts 3.5% Growth in 2005 Retail Sales; Predict Tough
Comparisons, Subdued Spending To Produce Softer Picture?
http://www.hfia.com/ReadContent.asp?nid=16
The NRF also mentions the following additional issues needed to be
addressed by retailers. The summary articles at the Bearingpoint
website and at About.com also give us additional insights. The
Bearingpoint article is for 2003-2004 but it still shows a strong
similarity with the more updated About.com article.
2. Supply Chain Issues - ?Create true supply chain visibility with a
synchronized demand network that eases inventory pain??
3. Link Systems - ?Link disparate systems for common connectivity to
aid in retailers' streamlining of operations.?
?Key Retail Industry Issues?
http://retailindustry.about.com/od/supplychainmanagement/a/bl_nrf011805.htm
2003-2004 Survey
1. Data Knowledge Action ? ?Why is the data-knowledge-action continuum
a core concept for the future? Because, in an increasingly competitive
environment where customer loyalty is ever more difficult to gain, an
actionable knowledge of the customer is fundamentally necessary.? (58%
of executives consider it an issue in 2003)
2. Segregation of High-Value with Lower Value Customers - The
customer-centric enterprise understands current and target customers,
segregates the high-value customers from the low- and no-value ones,
and then provides the right combination of products and services to
satisfy the profitable customers and earn their loyalty. (51% of
executives consider it an issue in 2003)
3. Using Private Labels for Differentiation ? ?A retailer must win the
heart of today?s savvy consumer by standing out. (349% of executives
consider it an issue in 2003)
4. Cross-Functional Integration ? ?The advantages of cross-functional
integration (at least
in theory) are well recognized in the industry: agility in responding
to ever-shifting customer demand; speed-to market?(39% of executives
consider it an issue in 2003)
?Retail Horizons BENCHMARKS FOR 2003, FORECASTS FOR 2004?
http://www.bearingpoint.com/portal/binary/com.epicentric.contentmanagement.servlet.ContentDeliveryServlet/published/pdfs/public/C2765_RH_2004_Flyer_final.pdf
-------------------------
Retail Systems Alert Group and Oracle Software Study
1. Consumer Polarization Making Strategies Difficult ? ?Most retailers
think that the consumer marketplace is polarized between consumers who
seek low cost with low emotional investments and consumers who seek
greater "personal value" and purchase goods with high emotional
importance.?
2. Off-shore manufacturing ? ?Businesses are challenged because it is
more difficult for hourly workers (including retail employees) to make
ends meet. Respondents agreed that this trend is likely to continue
indefinitely and will require the United States to evolve a new
economic model to return the country to past levels of prosperity?
3. Industry Consolidation or Real Estate ? ?C-level executives have
varying opinions on consequences of a dramatic drop in sales per
square foot ($280 per square foot to $202 per square from 1992 to
2003.) Some believe that this is the result of further consolidation
in the industry, while others argue that their companies will mostly
"rationalize" real estate. This rationalization will result in closure
of older stores in favor of new large format stores.?
You can get more in-depth insight by reading our next link.
?Consumer Trends Named Top Influence on Retailer Spending Decisions?
http://www.crm2day.com/news/crm/114457.php
Search terms used:
"retail industry" issues
I hope these links would help you in your research. Before rating this
answer, please ask for a clarification if you have a question or if
you would need further information.
Thanks for visiting us.
Regards,
Easterangel-ga
Google Answers Researcher |
