Retailing in Australia has become very competitive. The consumer is offered a wide variety of choices for the spending of disposable income. Even though total expenditure at the retail level continues to increase, the expanding number of retail outlets makes competition for market share more intensive than ever. While this competition may be seen as beneficial for the consumer, the retailer is under increased pressure to survive, and to subsequently make a profit. Lack of ability to attract an adequate market share is one reason for the high rate of failure of businesses within the early years of operation.
In order to provide an adequate return on capital and personal effort, a retailer today has to be acutely aware of what it takes to attract the required number of customers to generate the necessary sales revenue. It is suggested that the retailer has to adopt a customer driven management approach to ensure that the strategic plan contains the critical success factors that will equip make him to be competitive in a changing environment.
There is a reasonable amount of literature available from overseas, mainly from the United States of America. However, there appears to be a paucity of information from within Australia. Information for this report has also been gleaned from trade journals, department store in-house magazines and discussions with retailers, managers of shopping centres and retail property consultants.