It is important for the online reputation management New York company to understand how retailers evolve according to the strategies they change. There is a wheel of retailing which is a theory describing how new types of retailers can enter the market as a low-end operator but when they are successful, they gradually become more sophisticated and vulnerable to new low-end entrants. When they first enter the market, they enter as a low-end strategy, which is when they have low prices, limited facilities and services, and they are targeting price-sensitive consumers. When they evolve to medium strategy it involves them changing to moderate prices, improved facilities, and broader base of value-and-service conscious consumers. The third evolution is the high-end strategy where the retailer has high prices, excellent facilities and services, and upscale consumers. It is important as a retailer to understand that they evolve from one strategy to the next.
The wheel of retailing is a cycle where the innovative retailer has elements such a low status, low price, minimal service, economical premises and a limited offering. The innovative retailer then becomes the traditional retailer where they have more advanced facilities special services, essentials and exotics, high-rent locations, orientation toward clothing, high prices, and more diversified product offerings. The traditional retailer becomes the mature retailer where they are very static, they are conservative, and they are potentially in the declining role.
Low-end to high-end strategies include low-end strategy that has low rental location, they don’t have any services or the services are charged at an additional fee, they have crowded store interior and they have simple retail personnel organization. For the high-end retail strategy, they have a high rental location such as a shopping center or a central business district location, they have elaborate services available included in price such as credit, delivery and more. They also have a very spacious interior and they have elaborate retail personnel organization.
