Essay on Impact Of The Retail Industry On Retail Business
Changes in economy and technology influence retail business just as they do other industries. Some of these changes have transformed the future of the retail industry. Current economic growth means a good retail environment. However, recent economic downfall had a very negative impact on the retail industry, as a result it will take a long time to return to the rapid growth the industry had before recession. On the other hand, recovering economy will stimulate consumer spending. (Ira Kalish, 2014)
In the recent years’ retail industry had its up and downs because of the latest recession and it improved when the economy got better. However, as the chart below shows it’s still not as strong as it used to be.
Also the popularity of online shopping, which increased in the past few years, has caused some declining of employment in the retail industry in the past few years. According to Consumer Affairs improved retail sales online are the major cause of Macy’s shutting down 36 of it’s stores this year. The new strategy will eliminate about 3,000 jobs nationwide. The closing stores represent about $375 million in sales. This way Company will reduce its cost by about $400 million. (Huffman, 2016)
New devices trend
Currently technology plays an essential role in enhancing shopping experience. “The recent integration of GPS and mobile phone technologies serves as a useful illustration of how a convergence can create new markets and services.” This…