- Shortening channels (i.e., fewer channel members)
- More vertical marketing systems (VMS)
- More vertical and horizontal integration
- More direct marketing
- More power retailing (e.g., Toys R Us; Walmart)
- More “category killers” (i.e., stores with classification dominance in a particular product category (e.g., Toys R Us= toys; Barnes and Noble = books; Office Max and Office Depot = business supplies; Home Depot and Lowes = do-it-yourself merchandise)
- Greater price competition at all levels
- Proliferation of off-price and outlet malls
The next decades will be interesting. At a minimum, we will have:
- Increased use of technology
- Continued intense competition and industry shake-outs
- Continued use of self-selection and supermarket technologies (i.e., grid layout, scanner coding, shopping carts, few employees per square foot)
- Continued use of high service and narrow target marketing to differentiate to a small niche
- Continued shrinking of inventories and warehouse space
