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Retail Theory
Ent
ph
ry p
ility
Innovative retailer
Mature retailer
has
rab
e
ne
Minimum service
Vul
Poor facilities
Limited product offering
Traditional retailer
Elaborate facilities
More locations
Higher prices
Extended product offerings
T
Trading up phase
The Concept of Life Cycle in Retail
• A change may occur not only in the format but also in the
merchandise mix offered.
D. Decline:
• The retail organization looses its competitive
edge and there is a decline.
LIFE CYCLE
SALES
Maturity
Decline
Growth Profit
Innovation
TIME
The retail life cycle