“EVOLUTION OF GLOBAL RETAIL CHAINS – THE MIRRORING OF NEED HIERARCHY MODEL AND ITS IMPACT ON BUSINESS PERFORMANCE

Abstract

As the Global Giant Retail Chains like Walmart, Panda, Tesco, Carrefour and Lulu get more organised and spread geographically, their needs are becoming more segmented & focused based on Shopper need who frequent those Retail chains. As Shopper need get mirrored in needs of retail chains (both online & offline), there is need for a model to represent that need hierarchy and also test if such need score is related to business performance inside those retail chains.  As the retail need spectrum  becomes more diverse there is a clear need to classify and the customize Retail marketing approach towards them. This article aims at first understanding the need model in form of a hierarchy, then classify the retail chains in form of profile, volumes and culture need and finally co-relate Culture Need Fulfillment Score to business performance. This is a novel attempt to first classify the needs and then find a co-relation with a business performance in order to help retail business managers to manage retail Retailers in form of modified approach rather than “one size fits all approach”. Hence companies need to first comprehend the retail need trends & then adapt their service & offering accordingly. The new set of needs of Retailers named “cultural needs” which are getting increasingly relevant are used to develop “Retail Need Score (CNS)” and companies or business managers requirement to approach the retail chain such “Culture Need Competency (CNC)” which matches their need. Such a “met need” leads to a “win-win” situation which is maximizes the output for the trio of companies, Retailers and Shoppers. In this study we have formulated a “Culture Need Fulfillment Score (CNS)” based on each and weighted average of identified Culture Dimensions. Such a study helps in objectively measuring Culture Need Fulfillment Score (CNS)” to companies servicing those customers. Also the width of diversity and limitations of trade marketing budgets in current post Covid 19 time of business adversity, the retail classification model would help in laser sharp focus on selection of target distribution and targeted Retail marketing reducing costs and increasing focus