Retail Problems

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Employee turnover, is one of the major problems faced by the retail industry. Lack of workers continuity, skilled and trained staff is a big problem for manufacturers and retailers. Employees coming in and out of a retail business as if it was a revolving door only create problems for human resource professionals who always constantly find and train new staff. In this regular process a lot of valuable time and resources are wasted. 2. Auditing Auditing is another problem that the retail economics faces on a regular basis. Retail businesses are regularly engaged in competition with one another, and this competition can create price wars. This forces a need to keep tight control over inventory and other important data. The retail economics is…show more content…
Economic Challenges Another area of challenge for the retail economics is the economic uncertainty, it faces while moving forward. The retail industry as a whole is largely dependent upon the economic well being of the nation. As the nation prospers and people have more money to spend is a result, the retail industry generally flourishes. However, in more difficult economic times, the retail industry is often faced with potential shrinkage. It also indicates that the future uncertainty of global economic markets makes economic planning difficult in the retail world. 4. Technology Keeping up with the pace of modern technology is another problem the retail industry faces. For instance, retail point of sale technology often uses computer systems that are several years behind the computer industry as a whole. The inability of retail industry technology to keep up with initiatives such as mobile digital coupons is a problem that the industry regularly faces. The rate of turnover and the constantly changing economic environment, constantly upgrading and keeping their tools and networks running on the newest technologies can be difficult for retail leaders. 5. In context to Small and Big retailers Small Retailer A. Limited Product…show more content…
Lack of Product Diversity Small product manufacturers might find it difficult to convince large retailers to stock their item. Most large retailers, which have the goal of creating a regular customer experience across all of their stores, will want to stock only products with considerably large sales. Big retailers want products who at least give high returns in sales and a company history of at least three years, If newer products become popular quickly, a large chain's reluctance to stock them might cost them sales. B. Too Big to Manage Although large retailers benefit from economies of scale, which means they are able to purchase and sell high amounts of product at a smaller per unit cost than independent retailers, companies can expand too quickly. Companies can become out of touch with the everyday consumer and fail to provide them with the products they want. A chain based on the concept of low prices might do well during an economic recession, but suddenly find its sales decline when consumers have more money and prefer to spend it on quality or exclusive goods offered by independents store

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