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The first theory is known as the wheel of retailing theory, which explains how new retailers enter the marketplace. The theory proposes that retailers go through three stages: Entry Phase: This is when a retailer is new to the marketplace. They offer low prices but also have limited facilities and limited services.
Similarly one may ask, what are the theories of retailing?
We will now discuss the three cyclical theories of retail change: the Wheel of Retailing; the Retail Life Cycle; and the Retail Accordion.
These were as follows:
- Retail personalities.
- Misguidance.
- Imperfect competition.
- Excess capacity.
- Secular trend.
- Illusion.
In this regard, what is wheel retailing theory?
The Wheel of Retailing is a major hypothesis regarding patterns of retail development in which new types of retailers generally enter the market as low-margin, low-status, low-price operators, that gradually acquire more elaborate premises and facilities and move upmarket.
Retail mix is a marketing plan that responds to a set of varying factors, such as location, pricing, personnel needs and offered services and goods. A retail mix plan targets strategies to attract customers and influence their purchasing ability.