LO Covered K$1\mathrm{.}2$ Outline the retail strategy, retail operations management, innovation in retail, and the key issues impacting growth in retail firms. $(10$ marks$)$As consumer behaviour changes and as technology advances, marketers must make changes to stay relevant in the minds of their target market. During the late $1800$s$,$ the department store began the transition away from small mom$-$and$-$pop stores. In the $1920$s$,$ the first supermarket opened. In the $1950$s$,$ door$-$to$-$door selling was in full swing. In the $1980$s$,$ infomercials became mainstream. In the $1990$s$,$ online shopping got its start. In the $2000$s$,$ traditional brick$-$and$-$mortar stores began online sales. The rise of social media began in $2007,$ which created new selling opportunities. Then, in $2017,$ the United States saw a slight shift back toward traditional store retailer. But, alas, in $2020$ as the COVID$-19$ pandemic arose, that shift reversed again to online. These are just a few examples of how retailing has evolved with the times in the last century. As consumers get busier with their work and social lives, retailers find new ways to create value with the products they are selling. Lets take a deeper look at some of the more recent trends in retailing. Figure Social media created new selling opportunities for marketers. $($credit: Social Media Mix $3$D Icons $-$ Mix #$1$ by howtostartablogonline.net$/$Blogtrepreneur$/$flickr$,$ CC BY $2\mathrm{.}0)$Social CommerceSocial commerce is the blend of e$-$commerce and social media. With the rise of social media, brands have found new ways to engage and create lasting relationships with consumers. Many brands use social media as an additional marketing tool to engage more personally with customers. Retailers can do so in a variety of ways, from shoppable posts to influencer videos and everything in between.Lets look at Macys, an iconic American department store chain founded in $1858.$ Macys has weathered many changes in the retail landscape, and today it utilizes social commerce in a variety of ways. In $2020,$ the company opened its ambassador program to people outside the companyinfluencers who would promote Macys products through affiliate links or shoppable videos on social media. The pay is $5$ percent commission on sales. Why this shift to working with influencers? Simple. Consumers tend to trust the opinion of influential individuals over company$-$created marketing. And for Macys and numerous other retailers, the strategy has worked because social commerce grew $30$ percent from $2019$ to $2020.$ As social media has grown since the inception of Facebook in $2004,$ marketers and social media apps alike have taken advantage of the ability of consumers to interact with brands and to purchase products directly in$-$app. For example, Instagrams Shop and Checkout feature allows consumers to purchase products immediately without ever leaving the app. With the onset of the COVID$-19$ pandemic, the ability of consumers to purchase products while staying sheltered in place resulted in a change in behavior that is likely to endure in the coming years.Online Stores in Offline SpacesHave you ever purchased something online and picked it up at the store? This is what is referred to as online stores in offline spaces. While this practice was slowly gaining traction among larger retailers, the COVID$-19$ pandemic accelerated this trend drastically throughout nearly every industry. Retailers that already had the technology in place and$/$or were already testing such practices made a fairly easy transition to this new demand. Others closed their doors forever or scrambled to update their strategies to include some form of online sales. Walgreens, the second$-$largest pharmacy chain in the United States, was extremely successful in making such changes on the fly. In $2019,$ the company began allowing customers to order items online and pick them up at the drive$-$through window, which was previously primarily used for prescription pick up$.$ Because the drive$-$through window was already established at Walgreens, it put them at a unique advantage to transition quickly to offer online orders in offline spaces. Same$-$Day DeliveryWhile most might think of Amazon Prime as the originator of same$-$day package delivery, the concept has actually been around for decades but was less prevalent in retail. Companies that offer legal and financial services have long had same$-$day delivery of their documents. In addition, restaurants have been offering guaranteed on$-$time delivery for some time. Florists have also offered one$-$day service for many years, particularly for funeral arrangements. And while Amazon Prime made the practice much more widespread throughout retailing, the now$-$defunct company Kozmo.com likely pioneered the practice in $1998.$ Kozmo was an online retailer that promised one$-$hour delivery of videos, games, DVDs$,$ music, mags, books, food, basics & more, including Starbucks coffee. The company was popular with young professionals and college students, but it couldnt stay afloat and closed in $2001.$ The company likely inspired the US Postal Service Metro Post, which allowed Amazon to offer same$-$day delivery of packages in San Francisco in $2012.$ Fast$-$forward to today, and many retailers, including Amazon and Walmart, offer same$-$day delivery in larger, well$-$populated areas.The Emergence of Digital WalletsDigital wallets are software$-$based systems that allow for secure transactions. Digital wallets were first used in the late $1990$s$,$ but today they offer more security and allow users to save numerous passwords and payment methods. The system allows users to quickly make online purchases without having to remember passwords or dig through their physical wallets to get cash. They also allow users to pay for products and services in$-$store directly from their phones, allowing for touchless payments.If you are familiar with the Apple Store or the Google Play Store, youve likely used digital wallets. When you purchase online on one of these devices, an automated display will come up asking if you would like to save your log$-$in and payment information. Once saved, each time you log in to the same website or begin to make a purchase, the digital wallet will auto$-$fill your information. While digital wallets are a huge time$-$saver for consumers, they also benefit retailers by capturing a sale that might have been lost due to inconvenience$\mathrm{.}1.$ Which of the following trends in retailing grew considerably during the COVID$-19$ pandemic? $(0\mathrm{.}5$ marks$)$a$)$Social commerceb$)$Online stores in offline spacesc$)$Digital walletsd$)$All of the above trends grew considerably$\mathrm{.}2.$ Layla posts numerous times on TikTok and Instagram. As a result, she is asked to work as an influencer for a major retailer. Which trend in retailing is Layla a part of$?(0\mathrm{.}5$ marks$)$a$)$Online stores in offline spacesb$)$E$-$commercec$)$Social commerced$)$Same$-$day delivery$3.$ Software$-$based systems that allow for secure transactions by storing passwords and payment information are known as $\_\_\_\_\_\_\_\_.(0\mathrm{.}5$ marks$)$a$)$e$-$commerceb$)$online stores in offline spacesc$)$social commerced$)$digital wallets$4.$Of the following, which is the most likely reason for an increase in online shopping? $(0\mathrm{.}5$ marks$)$a$)$A pandemicb$)$The shift from two$-$income to one$-$income familiesc$)$More people retiring than ever before.d$)$The rise in regional shopping centres$5.$ Which of the following is TRUE of social commerce? $(0\mathrm{.}5$ marks$)$a$)$Social media is on the decline.b$)$Very few brands and companies utilize social media.c$)$Social media is one way to incorporate omnichannel marketing.d$)$Social media decreases personalization with customers.Ques $2.$ According to PR Newswire, more than $40$ percent of the overall revenue from the multimodal distribution market is due to roadway logistics$.$ Give four reasons why retailers and wholesalers depend largely on roadsrather than rail, air, or waterto send and receive products. Why do roads create the greatest transportation$-$based revenue for businesses and lowest costs for consumers. $(4$ marks$)$Ques $3.$ Most firms today take advantage of multimodal transportation, especially those that source and distribute products internationally. Do you agree with the statement? List three reasons why multimodal transportation makes sense financially for a retailer like Amazon that operates in a time$-$sensitive marketplace. $(0\mathrm{.}5+3$ marks$)$