The Retail industry is a dynamic sector requiring a careful combination of creativity, business theory, skilled practice, and technology to create value for customers – key aspects being experiences, convenience, service, and quality.
Value-creating functions of the retail sector are providing an assortment of products and services, breaking bulk, holding inventory and providing services. The sector is undergoing rapid change: customers scrutinize retailers today under a new set of value standards, including social responsibility, environmental impact, workplace safety and diversity, and the forces of globalization and trade.
Digital disruption continues to have a big influence on the retail sector - Amazon being a symbol of this threat to the incumbents.
The challenge for retailers is responding to the economic, technological, and customer disruptions with sound retail management strategy.
E-commerce is the one getting the most media coverage. However, technology and online customer behavior are not a threat to retail but should be a part of the strategy, so the economic and technological trends from e-commerce still are a driver for the need to innovate in the retail sector.