Assignment:
Retail Life Cycle The process of growth and decline that retail outlets, like products, experience is described by the retail life cycle. In this activity, we will investigate the four stages of the retail life cycle: early growth, accelerated development, maturity, and decline.
Similar to the life cycle experienced by products, the retail life cycle describes the process of growth and decline that retail outlets experience over time. Early growth is the stage of emergence of a retail outlet, with a sharp departure from existing competition. Market share rises gradually, although profits may be low because of start-up costs. In the next stage, accelerated development, both market share and profit achieve their greatest growth rates. Usually multiple outlets are established as companies focus on the distribution element of the retailing mix. In the maturity stage stores try to maintain their market share and price discounting occurs. As with the product life cycle, the maturity stage is followed by the decline stage. The challenge facing retailers is to delay entering the decline stage in which market share and profit fall rapidly.
Read the hypothetical roll-over hint associated with each retailer then drag the retailer into the correct stage of the retail life cycle.