ABSTRACT
To understand the retail environment it is important to glean a knowledge of the inter-relationships between the factors illustrated in Figure 2.1. In this chapter, we will consider how changes in the consumer environment – demographic, socio-economic and lifestyle trends – have impacted upon retail change. At the same time, government has been a major agent of change. Retailers are regulated by an array of laws and ordinances which impinge on their operations. This can be on licences to operate, which goods to sell, hours of operation, health and safety matters through to planning ordinances on where to locate the business. The types of merchandise on sale and the formats developed are a response to such interactions; however, retailers do influence consumers and government on product choice and format development. For example, the UK slowdown of the introduction of GM foods has been driven by retailers’ refusal to stock these products.
