Name 1 Name Surname Marketing Coursework July 5, 2012 Retailing is characterized by high dynamic.

There are different types of retailers and they are changed each year at the market. The problem is in order to be competitive in the market retailers have to improve their positions at the market by changing or enlarging services and production, increasing or decreasing prices, or changing form of retailing. The process of retailing change is explained by wheel of retailing and life cycle of retailing concepts. Both concepts describe the changes that the retailer outlet experiences during the life cycle. Four stages of wheel of retailing answer four stages of life cycle of retailing. Thus, the first stage of wheel of retailing is characterized by low prices, low status, and low margin. As the status and margin of such outlets are low, they have lower market share and profit. Consequently, it corresponds to early growth stage. Then, during accelerated development companies get more profit and conquer more market branches that leads to higher margin and status. After that, retailers get the stage of maturity when margin and status get much higher. Retailers change their forms, their profit decreases, and they share less market at the stage of decline. It leads to lower margin and lower status. The main difference between the concepts is aspects they highlight. For example, the concept of wheel of retailing focuses on the prices, margins, and status of the retail outlets, while the concept of life cycle of retailing makes accent on the market share and profit of the retailer. The concept of life cycle of retailing is more detailed and clear. Each stage is titled (early growth, accelerated development, maturity, and decline). Moreover, the definite types of retailers are correlated with definite stage. For instance, value retail centers, online centers,

Name 2 and single brand stores refer to early growth; single-price stores, warehouse clubs, factory outlet stores refer to accelerated development; department stores, fast food stores, supermarkets, and convenience stores are connected with maturity stage; business district retailers, general stores and catalogue retailers operate at the decline stage. The concept of wheel of retailing provides four stages but the difference between them is not clear enough. Thus, it is difficult to find the difference between the second and the third stages, since it is written that they both have higher prices, higher margins, and higher status. In conclusion, it is necessary to say that two concepts have similar description of changes in retailing life cycles. However, the concept of life cycle of retailing is more detailed and clear in comparison with wheel of retailing.

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