Key issues
Current growths of electronic and mobile technologies, as well as changes in the positions of national currencies lead to a range of challenges retailers experience, when operating in the Canadian market. The key challenge lies in designing a retailing policy in a way that fits consumer behavior in a particular country (e.g., Canada). In this regard, it is also important to take into account the implications of general economic situation on buyers’ behavior. Secondly, a significant issue is concerned with tough competition between brands that may lead to closures of specialized stores (e.g., Sony stores) (Raza, 2015). Thirdly, it is a growing concern to retail stores is represented a by a so-called showrooming. “Showrooming” is a practice, wherein customers visit a store to choose products they like and buy them online at cheaper prices.
Critical analysis
The above issues seem to be highly different (ranging from current low positions of the Canadian dollar to the prevalence of online shopping). Nevertheless, tackling all of them requires similar approach that deals with understanding the behavior of customers, differentiating and generating added value for them accordingly. Firstly, it is essential to know as much as possible about the industry, wherein a company is going to operate, and understand the major peculiarities and trends of consumer behavior. The issue of differentiating comes into play, when one remembers the case of Sony that had to close its store because of Samsung and LG competitive forces. If Sony had managed to differentiate by quality of its products, in-store service, in-store experience or prices, the company would not have had to get its store closed.
The concept of differentiation is also applicable with regard to current need to compete with online shopping. If a retail store manages to provide customers with an experience of far higher quality than e-stores, it will be still able to sustain the competition of e-stores. Retails stores tend to employ divergent practices in order to improve the understanding of the wants and needs of their customers and generate greater added value. These practices can be used as recommendations for retail stores to counter present challenges.
Recommendations
Firstly, stores can use price differentiation by setting prices that do not exceed the ones in e-stores. This step may require working together with manufacturers or suppliers to reduce prices the store buys items from them (Raza, 2015). Secondly, a good practice can deal with crediting stores for further online purchases, made by showrooming customers (Raza, 2015). Thirdly, providing a high –level of service and unique shopping experience is n excellent way to return customers to stores. This avenue can be taken by powering frontline sales (e.g., offering in-store applications that help customers get to know more about the items) (Constantinides et al., 2013). It is also important to try creating magnificent shopping experience (e.g., by offering additional services, such as the ones of beauty advisers or personal shoppers. In this regard, it is important for retail stores to keep investing into promotion activities. Thus, Nordstrom retailer, opening in Vancouver in 2015, made a lot to emphasize the uniqueness of experience one can get there and managed to attract a lot of customers (Nordstrom, 2015). Finally, offering special deals and coupons has always been a good way to keep customers interested.
References
Constantinides, M., Gregg, B., and B.Salsberg (2013). Mobile shopping’s data goldmine. Retrieved 27 January 2016 from https://hbr.org/2013/06/mobile-shoppings-data-goldmine/
Nordstrom (2015, 09.18) Nordstrom Pacific Centre: opening highlights. Retrieved 27 January 2016 from https://www.youtube.com/watch?v=jRKD51pmcX8
Raza, I. (2015). Retail challenges and trends. Retrieved 27 January 2016 from https://imranraza.wordpress.com/2015/09/20/retail-challenges-and-trends/
