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Strategies for Retail Management during Economic Downturn

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Strategies for Retail Management during Economic Downturn

CHAPTER I: INTRODUCTION

Economic Downturn

Economic downturn is a phase during which selling, buying, production and employment tend to decline, with the overall economic activity in the country slowing down. According to macroeconomics, an economic downturn is a reduction in the gross domestic product that yields a number of negative economic consequences. In other words, a recession settles in the national economy. A recession occurs when the nation's economic activity continues on a downward trend for two consecutive quarters of the fiscal year. Typically, recession is followed by a stark rise in economic activity and growth. However, as recently as 2008, global economy suffered a recession that spiraled down to a state of depression. Recession generally increases unemployment, reduces output in the economy, investors retract their investments and gross national product declines. The effects of recession have also impacted the retail industry with consumer confidence and spending take a hit (Shumanov & Ewing, 2007, 70).

The retail store industry continues to look for ways to create better service that will lead to an increase in customer satisfaction and customer loyalty. The retail marketplace in the 21st century is fueled with competition, creativity, and innovation. Retail store managers throughout the United Kingdom are taking into consideration managerial tools and processes to improving customer satisfaction and customer loyalty. Technology, marketing, and inventory management systems are tools that can be used by retail stores to preserve and improve consumer-buying habits (Bowden, 2009, 63). The outlook of the global economy plays a significant part on the lives of people all over the world. The global economy impacts people behaviors and sudden changes in the financial markets impacts consumers buying habits. The downturn of the global economy has sparked the credit crunch, the movement of the dollar, the rise in the price of oil, inflation and deflation (Hoff, 2008, 46). The global power of retailing is significant and it is an important aspect of this study.

CHAPTER II: LITERATURE REVIEW

The internet provides a means in which people can access information at a speed more rapidly than ever before which makes it convenience for people to research and find the information useful. Technology is used in every facet imaginable. As society progresses and demand increases, consumers will look for new ways in which they buy goods and services. Although, technology affords only minor convenience for consumers, the reality is that retail store chains may influence the buying process through marketing, technology, and inventory management systems (Goldsby et al, 2006, 57).

Strategies for Retailers in Recession

Forecast Modeling

The research study represent multiple perspective of the subject matter, opposing viewpoints may only be determined by the various cost ratios as it relate to marketing. The differing technology systems managed and the various inventory management systems established by each retail stores will be determined by the research study. Rajagopal (2007) asserted a firm may combine innovation and technologies in new products to create customer value and competitive ...