Retailing is without any doubt the most delicate part of sales. This delicate state is in large part due to the constant need to maintain a steady flow of commodities with the view of avoiding their stagnation. Khan (2016) opines that pricing is an art just as much as it is a science. Consequently, a clear-minded approach is necessary when making decisions concerning one's retailing prices. Danziger, Hadar & Morwitz (2014) also suggest that the lifeline of a commodity in the market is substantially determined by the eventual retail price. This supposition is in line with the outcomes of their studies which further supports their argument. Accurate evaluation of the market, as well as proper pricing and retail strategy, are imperative in keeping a business endeavor on its feet.
Retailing refers to the process through which a company or a set of individuals take part in the selling of goods and services to customers (Marcilla, 2014). A focus on Wal-Mart grocery retail chain would suffice to bring retail pricing into perspective. The immense contribution that the retail industry sector offers to the economy is an indisputable fact. Moreover, it has established itself as the leading employment creating industry in most developed economies. According to Marcilla (2014), it takes the second spot among the largest industries and accounts for up to 12% of total employment in the United States of America. Through the decades, since its initiation, Wal-Mart has moved through the ranks and is today a force to reckon with in the sector.
The store mainly attributes its success in the market to its low cost, high volume strategy. This approach has enabled then to remain relevant and competitive in the retail industry. It recognized the need to ensure customer satisfaction. Ideally, most consumers will opt for cheaper commodities when assured of quality (Danziger, Hadar & Morwitz (2014). Accordingly, Wal-Mart provides that its customers remain satisfied by offering low prices coupled with quality customer service. It attaches great importance to employee motivation. A motivated workforce is an essential requirement for positive client feedback. Another factor that gives it the edge over its competitors is the seemingly large sizes of its stores. It provides one-stop shop services to its customers by availing a wide variety of goods at the same venue.
Nevertheless, the journey to prominence has not been entirely a smooth one for Wal-Mart. The industry offers an array of challenges that only big willed retailers can withstand. In 2014 for instance, news abounds that several retail stores were closing down primarily due to intense competition (Marcilla, 2014). Wal-Mart's personal failure to conquer the German market is an example of poor strategy on their part. Eventually, the store had to pull out its outlets from the country. Presently, the retailing market trend that threatens to affect the patterns of customer transactions is the emergence of online shopping. Loeb (2016) warns that retailers could be compelled to restructure their strategies on these changes to make an impact in this financial year. Amazon has been identified as the main culprit in internet retailing.
Before venturing into the retail business, it is imperative to lay out proper strategies with regards to retail pricing. This is because of the business' existence, as well as its longevity depends on it. Needless to say, critical analyses of the direct market, as well as instant response to changes in the market, are necessary to keep the business afloat in the increasingly competitive market. Additionally, consumers prefer cheaper products. Making one's products affordable to the consumers is a sure recipe for the success of the retail business.
Danziger, S., Hadar, L., & Morwitz, V. G. (2014). Retailer Pricing Strategy And Consumer Choice Under Price Uncertainty. Journal of Consumer Research, 41(3), 761-774.
Khan. H. (2016). 9 Strategies for Profitably Pricing Your Retail Products. Retrieved from https://www.shopify.com/retail/120028547-9-strategies-for-profitably-pricing-your-retail-products
Loeb. W. (2016). Why Retailers Must Restructure In 2016; Forbes.Com. Retrieved from Http://Www.Forbes.Com/Sites/Walterloeb/2016/01/04/Every-Sign-Is-Saying-Retailers-Must-Restructure-In-2016/#3810ac415f94
Marcilla. B . L. (2014). Business Analysis For Wal-Mart, A Grocery Retail Chain, And Improvement Proposals. Southeast Missouri State University. Retrieved from Https://Riunet.Upv.Es/Bitstream/Handle/10251/44289/Business%20analysis%20for%20Walmart%20FINAL%20TFC%20Laura%20Barber%C3%A1%20Marcilla.Pdf?Sequence=1
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