Retail industry in Canada (P.E.S.T) Analysis
There is no doubt that consumer’s play major role in driving the economic engine. Consumers are in today’s market place interacting with different marketplace than they were before. Consumers’ ability to take full advantage of the new marketplace is related to their socio-economic status and time constrain. Organization is open systems, which mean they interact with and respond to their environment. An organization takes inputs and processes those inputs into outputs. These inputs which organization consumes to produce output come from external environment.
Due to the fact that organizations interact with this external environment which are ...view middle of the document...
During the last three decades, foreign retailers made their presence by more than 3 times, from 3000 to approximately 10,000 between 1075 and 1995. Retail industry has been benefited with flow of goods and services across borders without tariffs.
• Canadian government are working with industry and consumer groups to develop consumer protection e-commerce legislation and policy or voluntary guidelines and for the on-line merchants.
• Canadian consumer are protect by unfair practises, such as false, misleading or deceptive representation, unconscionable representation, renegotiation of price ,unfair practices prohibited, rescinding agreement and transition. The compliance with the law to protect Canadian consumers is mandatory and encourages transparency in the industry.
• The retail sector play major role into the production and consumption which directly and indirectly helps Canadian economy. Retail sector directly contributing some $74.2 billion into gross domestic product (GDP) in 2009.
• Large retailers in many industries have become bigger in size and develop in-house brands e.g. no name brand of Loblaw’s reducing dependency on upstream manufacturers’ supplies.
• The economic impact of big box retailers on the smaller stores located within five kilometre radius in Greater Toronto Area is devastating. Between 1993 and 2002, the closure rate for smaller stores was ranged from 26 to 55 percent .
• In today’s highly global competitive market and with traditionally low profit, cost controlling is number one priority for firm’s profitability. As retailers around the globe recovering from economic downturn their focus is shift from revenue growth to cost controlling. The retailers who are slow to adapt to economic conditions and...