来自国际大品牌的竞争:由于上面讨论的另一个因素，即在线市场，这个因素的影响已经增加。网络市场使得来自美国和欧洲的大型国际品牌能够在澳大利亚开设仓储式商店，并作为零售商经营澳大利亚市场(Mitchell & Chaudhary, 2014)。因此，竞争变得激烈，降低了零售商店的负担能力。
The challenges for the retail store owners have been increasing. There are several factors that are impacting the profit margin in the retail business. Over the period of time the challenges have shifted from the supply side to the challenges posed by the demand side. The factors impacting the business are entirely different from traditional challenges. It is important to identify the challenges from different perspectives. Based on the understanding of these factors, suitable strategies have to be employed to overcome the challenges.
The report has been prepared for Peter Alexander Crown Casino to develop a store strategy plan. The report includes analysis of the current retail environment which includes the external environment, customers and competitors in the industry. Further, the current strategies of the retail stores employed by different retailers in the industry based on various factors have been discussed in the report. Lastly, based on such analysis, the strategies to be employed by Peter Alexander have been recommended to overcome the challenges discussed above. Overall, the report will provide guidelines for future strategic initiatives that may be taken by Peter Alexander to sustain in the market.
Current Retail Environment
Several studies have been conducted to analyse the impact of external environment on the performance of retail store. The analysis shows that physical retail outlets are facing several challenges including continued growth in online retail, competition from big international brands and low economic growth.
Competition from online stores: A lot of online stores have come. The advancement in technology has enabled not only offering products but also collect money and obtains feedbacks from customers. This has put retail stores on the back foot as very small players in the market have launched their products on the online platform.
Competition from big international brands: The impact of this factor has increased because of the other factor discussed above i.e. online markets. The online markets have enabled the big international brands from USA and Europe to have warehouse stores in Australia and operate as retailers for Australian Market (Mitchell & Chaudhary, 2014). As a result of this, the competition has become fierce and reduced the affordability of the retail stores.
Industry growth: The sluggish growth of the industry has been one of the factors that have impacted the performance. The growth in sales in the market is not there and the inventory costs itself is driving away the profitability.