An important lesson in the wheel of retailing is for a retailer to

Question

Quizplus · Accepted Answer

The wheel of retailing theory suggests that over time, retailers start with low prices and low margins to attract customers and then gradually add services and amenities, which increase costs and prices. Keeping an eye on costs is crucial to avoid becoming vulnerable to new competitors who can enter the market with a lower cost structure, thereby repeating the cycle. Continuous focus on cost control helps a retailer maintain its competitive edge and adapt to changes in the competitive landscape.

An Important Lesson in the Wheel of Retailing Is for a Retailer