LIFE CYCLE OF RETAILING

Submitted by Ratna Kushwah

ROLL NO. 42
 Retail Life Cycle

• The retail life cycle is the process of growth

and decline that retail outlets, like products,
experience, which consists of the early growth,
accelerated development, maturity, and decline
stages.
 Retail Life Cycle
• A theory asserting that institutions -- like the goods
and services they sell -- pass through identifiable
life-cycle stages: innovation, accelerated
development, maturity, and decline. Retail
institutions pass through identifiable life stages
 introduction
 growth
 maturity
 decline
 Understanding retail life cycle theory

• It says that the retail developments pass

through stages.

• At birth , there are slow rates of growth due to

limited resources and experiences.

• This is followed by a time of rapid growth as

efficiency and experience increase .
• Eventually growth will level off into the
mature stage due to increased costs &
competition and and reduced efficiencies.

• In a mature market the competition remains

intense , growth slows and profits begin to fall.
• A continued decrease in market share and
profitability will eventually cause the
development to decline and, if the situation
worsens , ultimately to withdraw from the
market.
• The less competitive companies, which have
previously entered the market, will be forced out
early as the market goes through a shake- out
period.

• An example of a company which has had problems in

relation to the life cycle is Woolworths. In an attempt
to remain competitive its range was expanded to a
point where the offer was undefined and it became a
store of last resort.
the group realized it was not adequately
providing for the needs of the contemporary
consumer and survived only because it
recognized the value of adopting a focused
strategy.
THANK YOU