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Retail Business Environment

Notes “Technology has grown in leaps and bounds over the last decade and will continue to grow in
a geometric progression. In the retail industry profits are not made through a single transaction
but by establishing a rapport and a long term understanding with customers. It is all about
building reputation and customer relationships to profile customer buying patterns. Technology
has vast and major implications in virtual shopping, where a customer can shop anything he
wants within a few clicks of a button. The best part of having an online shop is that it is accessible
all the time. Most stores have an integrated online shopping option which enables customers
sitting from their offices.”
In concluding remarks, the retail industry has transformed from what it used to be single shops,
to what is now a much complex chain stores with worldwide customer base. Globalization has
expanded the market in which retailers operate so this transformation has led to advanced
information technology necessity to connect all the shops to one central hub system to manage.
As a result of advancement in technology and informed and price sensitive customers, information
has developed to be the most vital asset of the successful retailers today. Information as an asset
and information system technology is the most important tools available to retailers. Technology
has had a huge impact on the retail industry transformation.

Self Assessment

State whether the following statements are true or false:
10. Information as an asset and information system technology is the most important tools
available to retailers.
11. As a result of advancement in technology and informed and price sensitive customers,
information has developed to be the most vital asset of the successful retailers today

12. The retail industry is a sector of the economy that is comprised of individuals and companies
selling finished products to wholesalers.
13. As a result of this transformation and evolution of the market, travelers began travelling
around to sell their goods and so they were known as “peddlers.”
14. FDI in Multi brand retail implies that a retail store with foreign investment can only sell
one brand.
15. FDI in Single Brand retail implies that a retail store with a foreign investment can sell
multiple brands under one roof.

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Case Study An Aldi Case Study Competitive Advantage

Through Efficiency

he food retail industry is a highly competitive market. More so than ever,
organisations need to offer customers value for money. Customers want the best
Tquality products at the lowest possible prices. With such tough competition it is
vital for organisations to understand what their customers want. Aldi understands that its
customers want value for money but do not want to compromise on quality. This case
study will demonstrate how Aldi uses a lean approach to its business operations to offer
its customers quality products at competitive prices.
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