Numerous innovations characterize the new era. The technological advancement has had an impact on the many aspects of the society including retail trade. The internet has had the most substantial effects on retail trade. The impacts are double-edged, that is; they are both beneficial and negative. Owing to technology, retail trading has transformed from the traditional markets to complex retail physical and online stores.
One of the notable effects of technology on retail is creating an opportunity for the opening of this form of enterprises. Consequently, the consumers can now enjoy a large pool of commodities at their doorsteps. For illustration, at the mall, you can get everything under the same roof.
However, there are negative effects on retail trade. For instance, the high number of players in the market has heightened competition which threatens new entrants. The rise in the use of the internet as the most prevalent method of communication has bridged the gap between the consumer, the wholesalers and the producers. As a result, the need to have a retailer in the chain of supply is eliminated. For illustration, clients can now order products online from the manufacturers and distributors. Furthermore, online stores are outdoing physical retail stores by using orders placed via an app or website then delivering the products to clients.
The consumer awareness concerning the market has increased due to competition. Hence, their bargaining power has increased which is detrimental to the retail enterprises. In most cases, consumers are getting cheaper alternatives when they buy from distributors and wholesalers.
On the other hand, retailers can take advantage of the opportunities provided by advancement in technology. For instance, the target market is increased as they can reach out to new markets. The internet has made the marketing of brands and products easy. Thus, technology is a threat and opportunity for retail trade.