Retailing in 21st Century: Current and Future Trends, 2nd edition

Citation

Shekhar Singh, A. (2012), "Retailing in 21st Century: Current and Future Trends, 2nd edition", Journal of Product & Brand Management, Vol. 21 No. 3, pp. 226-227. https://doi.org/10.1108/10610421211228856

Manfred Krafft and Murali Mantral have successfully brought together an impressive list of 48 authors who include industry experts and leading academic scholars from Europe, the United States, Australia, and India. The 25 chapters in the book are divided into three Parts:

1. 1.

   Introduction;

2. 2.

   Global, Environmental and Market Trends; and

3. 3.

   Trends in Retail Management.

The Introduction consists of three chapters and focuses on the key success factors driving national and international success in retailing, including the role of the entrepreneur. Chapter 1, co‐authored by Grewal, Krishnan, Levy, and Munger, present a framework that identifies the key drivers of success and introduces four segments of retailers:

1. 1.

   Innovative;

2. 2.

   Low‐Price;

3. 3.

   Big Middle; and

4. 4.

   In Trouble retailers.

In Chapter 2, the story of the growth and transformation of METRO Group is described by Mierdorf, Mantrala, and Krafft. Chapter 3 deals about the idea of Entrepreneurship in Retailing, and authors Mantrala and Krafft describe European retail entrepreneur Leopold Stiefel's journey towards making of two consumer electronics retail chains, Media Markt and Saturn.

Part II of this book consists of a total of 11 chapters: four chapters on Global Trends; four chapters on Environmental Trends; and three chapters on Market Trends. In Global Trends, retail trends in Europe, US, East Asia, and India are discussed. A new chapter has been added in the second edition of the book due to the need for a detailed analysis of the Indian retail sector, by authors Sinha and Kar.

The issue of Environmental Trends deals mainly with use of innovative technologies in retail sector. Use of technologies like Universal Product Code barcode scanning, automated self‐checkout systems, personal selling assistants, digital advertising displays, electronic price tags, and radio frequency identification (RFID) technologies in retail sector and its consequences are discussed by the authors. This chapter written by Ravi, Raman, and Mantrala, focuses on applications of intelligent technologies in retail marketing for not only creating data warehouses but also for analyzing them intelligently to support decision making.

In the Market Trends chapter are discussed issues of forces driving the buyer‐centric revolution in retailing, Multi‐channel Retailing, and prevailing competition in retailing be it within or between retailing formats.

Part III consists of a total of eleven chapters: one chapter on people; two chapters on products; two chapters on pricing; two chapters on distribution; and four chapters under the heading of operations, promotion, and marketing communications. This section begins with chapter describing the critical role of Human Resource Management in changing external and internal environment for international retailers dealing in diverse cultures. The next two chapters deal with the issue of product assortment and out‐of‐stock situation in the retail sector.

Today's retailers face a renewed emphasis on pricing practices, and two chapters explore these issues. Bolton, Shankar and Montoya suggest a movement towards customized pricing by identifying and examining the impact on retailer pricing practices of four major retailing trends: retail consolidation, changing manufacturer practices, advances in technology, and the emergence of e‐tailing. In next the chapter the impact of price on profit and lack of proper attention to optimize pricing are discussed.

In the first chapters on distribution the authors provide a detailed comparative analysis of different retail formats in G8 countries, namely:

• •

  cash and carry stores and warehouse clubs;

• •

  convenience and forecourt stores;

• •

  discount stores;

• •

  hypermarket and superstore operators; and

• •

  supermarket and neighborhood store operators.

This comparison shows share of retail formats in these countries and makes an attempt to predict the trajectory of retail structure in the future based on these current trends. The next chapter, by Weitz, discusses the potential and limitations of electronic retailing. The kind of merchandise and services being sold through this channel and likely to be sold in the future, and companies who are likely to lead, are discussed.

The last part of the book deals with the issue of Operations, Promotion, and Marketing Communications in the retail sector. The first chapter in this section focuses on supply chain management issues associated with products frequently on promotion and emphasizes the need for an accurate forecast of the demand impact of such promotions. The chapter provides insights into how manufacturer–retailer collaboration can improve performance in this environment. The next chapter, by Gedenk, Neslin and Ailawadi, talks about sales promotion in retailing. Here they discuss about price and non‐price promotions, short and long term effects of these promotions, and use of technology like loyalty cards in retail promotions.

In the next chapter, Reinartz discusses the strategic management of loyalty programs, which have become an extremely prevalent marketing tool. He provides a descriptive overview of different types and design characteristics of loyalty programs followed by specific possible roles of it in marketing. Last chapter of the book, written by Raman and Naik, provides detailed analysis of the need for integrated marketing communications and their ability to solve the key challenges in the area of communications for retailers. They reveal how retailers should act differently as they seek to determine the communications budget amount and optimally allocate it to create synergies.

Overall, I believe that practitioners as well as academics will strongly benefit from this book and find it stimulating and thought‐provoking. A selective reading would benefit anyone who hopes to succeed in tomorrow's retail environment.