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Retailing Will Never Be The Same Again Article Review

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¶ … Retailing Will never Be the Same Again This article first appeared in Forbes in 2009 and discusses the affect of the Internet and the recession on the $4 trillion dollar U.S. retailing business. The article notes that just as the Web has ravaged the newspaper business, the retailing business is also being reshaped by the Web and the economic downturn. This article is very germane to the current economic climate in the retail industry.

The authors note assert that the recent bankruptcies of Circuit City, Linens 'n Things, Mervyns, and others are only an indication of things to come. This "economic and technological tsunami" has worked to force retailers into two groups, discounters who sell national product brands on the basis of price or stores that don't need to discount because they offer uniquely compelling products and shopping experiences. As this phenomenon is trans forming the retail business and as it does a third group, major supplier who do not like either...

Because of this retailers that cannot compete on price or convenience have to find another way to attract customers, usually with distinctive offerings and engaging customer experiences. Many retailers such as Abercrombie, Aeropostale, PetSmart and Best Buy have begun designing some or all of the products they sell, becoming vertical retailers with integrated design and development. This gives them greater capabilities in market research, product development, product testing, and sourcing than most retailers. However, most of these retailers have do not to own the factories that produce their unique products, acting vertical rather than being vertical. Another strategy retailers employ to attract business is to expand their definition of what a product is.…

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Karonis, John, & Madison Riley, "Why Retailing Will Never Be the Same Again." Forbes.com (May 13, 2009). Accessed January 20, 2013. http://www.forbes.com/2009/05/13/retail-industry-change-leadership-managing-revolution.html#
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