History of Retail Consolidation[/b]
From the 1980s to 1990s, “there was a significant change occurred in the economic power in supply chains with the trend toward retail consolidation and the emergence of giant retailers” In other words, this shift gave large retailers more power and was able to make manufacturers change their supply chain strategies. In China, only till to mid 1990s, this trend in the retail industry started; especially in 1998, there were more than 1,000 chain-store companies including 21,000 outlets in China with the total sales increase up to 70% compared with the sales in 1997 Looking at the specific convenience-store industry in China, in 1999, due to the consolidation, the growth rate of convenience stores reached the peak of 25.38% during the time from the 1980s to 1990s It was claimed that this sector would experience further consolidation; one example is that only in one month, July 2003, Family Mart said that it was acquiring 43 convenience stores.
With retail consolidation and competition of the private label business, traditional branded apparel companies are having a hard time to differentiate and grow. Retail consolidation also called central buying, an approach in chain stores whereby all purchasing is done through a central or main office. In the past year the mergers of retailing giants - Sears and Kmart and Federated and May department stores - have generated lots of media attention, but these mergers are undertaken for the good of the companies themselves and not for their shoppers. Shoppers are following two different tracks which necessities are shopping where convenience and price are key and recreational shopping where a whole other set of rules apply. Recreational shoppers are looking for more than just buying more stuff at cheap prices. Recreational Shopping: Consumer Insights Study of the Recreational Shopper, Their Demographics, Their Shopping Choices and Their Motivations to Shop, Unity Marketing conducted qualitative and quantitative research to examine the newly emerging recreational shopper - who they are, and both men and women shop for fun; how they shop; where they choose to shop and who their favorite retailers for recreational shopping are; and most importantly, their drives, motivations and passions that incline them to look at shopping as fun. After all retailing is really a people business, not a products business." Segments of retail where consolidation has not yet occurred and small retailers dominate include furniture and home furnishings stores, florist, gift and novelty stores, art dealers and non-store retailers. Consolidation has exacerbated market power throughout the economy. In food, it has spawned U.S. congressional charges that powerful oligopolies of grain buyers and meatpackers are exploiting farmers and ranchers, and that a handful of grocery giants collectively monopolize the nation’s retail shelves. In radio, it has afforded a handful of giants vast influence in dictating what political views and voices are — and are not — heard; what types of music are — and are not — played; and which musicians and concerts are — and are not — successful. Lucy is a great retail brand with tremendous energy and growth potential. In the fragmented women's active area, branded makers are still the major players. Lucy offers a fun and relax shopping environment with attentive customer service and products that are well designed and priced. This is one brand and concept to watch.