ABSTRACT
This chapter discusses the relationship between retail and an ever changing environment. Environmental exploration can be subdivided into three main groups: analysis of trend developments; analysis of institutional frameworks, such as legislation; and analysis of economic environmental factors. The developments in the composition, geographic distribution and lifestyle of consumers are therefore an important factor for the retailer. The sales in the retail sector are highly dependent on the expenditure possibilities of consumers. The development of the income situation of the Dutch population is therefore an extremely relevant environmental variable. In practice, expenditures in retail appear to be strongly influenced by consumers’ expectations of economic developments. Studies in the relationship between consumer expenditures and the development of the index of consumer confidence seem to suggest that the relationship between the index and the actual expenditure behaviour of consumers are becoming weaker over time.
