Existing research studies on the topic of online shopping, point of sale retail segment and success and decline is discussed here. Accounting theory and how cost analysis would be a useful tool is argued for theoretically. The purpose of the literature review is to present how e-retail and point of sales retail would differ when it comes to the cost structuring. Also, the research literature review aims to show how current research discussion can be structured.
Environmental theory, cyclical theory and conflicting theory are main theories of retail development. Those theories explain the process of retail development including organizational capabilities of investments and creation of sustainable competitive advantages.
In trading up phase, retailers as traditional retailer develop their business, establishing their own right. In this phase, the traditional retailer will update and acquire more expensive facilities to offer a greater range. Thus, the new discounter and scrambled merchandising occurs because the retailer offer some unrelated goods and service. Extended product offering, higher rent and updated facilities promote the sale and increase the sale price, thereby, increase overall sales and profit margins (Polsa & Fan, 2011). Carrefour China has systematically emphasized of selling the retail products for obtaining more valuable objects of this kind. This retailer organisation has strictly focused on stocking up high priced items through purchasing and exchange policy.