The retail industry is a driving force in the world economy, so much so that news reports often base at least part of their awareness of the economy on how the retail industry is performing. Aside from the major economic ebb and flow of the buying seasons and how they affect retail sales, the retail industry as a whole has a number of other major problems that it must often deal with. Retail is a simple concept of buying or making products, place them on a shelf and sell them at a profit. Competition for customers and the expenses involved in running a store ultimately pose challenges in the retail industry. Both large and small retailers face problems and challenges. Maintaining a feasible price point and keeping customers interested in the brand or product what a retailer sells is the ultimate task.
1. Employee Turnover
Employee turnover, is one of the major problems faced by the retail industry. Lack of workers continuity, skilled and trained staff is a big problem for manufacturers and retailers. Employees coming in and out of a retail business as if it was a revolving door only create problems for human resource professionals who always constantly find and train new staff. In this regular process a lot of valuable time and resources are wasted.
Auditing is another problem that the retail economics faces on a regular basis. Retail businesses are regularly engaged in competition with one another, and this competition can create price wars. This forces a need…