Page 112 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Unit 5: Managing Retailing in Good Times and Bad

them to the retail points. ‘Low investments and high returns’ is now made possible with the Notes
arrival of technology enabled marketing services. The retail industry should realize that it
would be at a fair advantage of including technology enabled marketing services to unfold the
immense retailing opportunities.

Self Assessment

Fill in the blanks:
9. …………………… down the marketing and advertising budgets will reduce the financial
burden on retailing industry.
10. According to National Retail Federation research, retail and ……………………….. places
employ more workers than all other sectors of the U.S. economy.
11. Marketing and ………………….. are the supreme factors for the retail industry to penetrate
more into retail market.
12. The retail industry should realize that it would be at a fair advantage of including
……......………… enabled marketing services to unfold the immense retailing opportunities.

13. Following innovative marketing and effective advertising at ………………….prices will
be a brilliant move for the present day market trends

5.6 Summary

Consumer spending patterns are shifting, and retailers must alter their strategies as past
tactics may no longer be effective.
The characteristics that describe a macro economy are usually referred to as the key
macroeconomic variables. The following four variables are considered to be the most
important in gauging the state or health of an economy: aggregate output or income, the
unemployment rate, the inflation rate, and the interest rate.
Macroeconomics essentially examines the factors that lead to changes in the main
characteristics of the economy—output, employment, inflation, and the interest rate. A set
of principles that describes how the key macroeconomic variables are determined is
called a macroeconomic theory.

The best way to manage seasonal fluctuations, and maintain positive cash flows throughout
the year, is to develop detailed sales and inventory plans before the season begins, use
those plans to guide your merchandise purchases.
“But without careful planning, inventory can easily get out of line, resulting in heavy
markdowns due to overstocks and, ultimately, serious cash flow problems.”

For many independent retailers, the largest asset on the balance sheet is inventory.
Inventory is the ‘active’ asset, which generates the business’s sales and profits.

A seasonal retailer has to commit to enough inventory to set displays and cover early
sales, sales which are a critical early indicator of the season to come.
According to National Retail Federation research, retail and food and drinking places
employ more workers than all other sectors of the U.S. economy.
The current slowdown in the Indian economy notwithstanding, the retail segment in the
country seems to be in for a big time expansion led by most major Indian business majors
and global players.

LOVELY PROFESSIONAL UNIVERSITY 107