Overcoming new challenges

Retailing is increasingly being confronted with difficult economic and social conditions. In order to operate successfully, modern retailing companies have to develop and implement innovative strategies.

82 million German citizens are continuing to display restrained behavior when it comes to shopping. Income levels are stagnating, financial room for maneuver when buying consumer goods is generally smaller. At the same time, more and more companies are competing for customers. Apart from local competitors, powerful companies from abroad are expanding into the German market.

Demographic change is not confined to Germany, most European countries are experiencing the same thing: the average age is increasing, while birth rates are dropping. In the future, young people will no longer make up the majority of the population. On top of that, the number of immigrants in many European countries has continued to grow over the last decade. Retailing companies have to develop customized product ranges for these target groups, as senior citizens and different ethnic groups have considerably different needs, wishes and shopping habits.

The growing number of consumers means that shopping behavior changes from one situation to the next. Sometimes the price is all important, sometimes the store atmosphere, and sometimes the customer-friendliness and image of a particular store. So-called hybrid customers cover their daily needs at discount outlets, but also make impulse or provision buys at expensive gas station stores. Due to this inconsistent consumer behavior it is important that retailing builds long-term customer relationships.

Further information is available in the  "Consumers in focus" section on the METRO GROUP website.