Theoretical Approaches

This chapter reviews various theories of retailing. Different types of stores, formats, price ranges, and business strategies that first appeared in Western countries have sought a theoretical framework. These theories range from the more popular “Wheel of Retail,” the “Retail Accordion Theory,” the “Retail Life Cycle,” and the non-cyclical “Environmental Theory” and “Conflict Theory” to an attempt at a synthesis. The concept of the “Big Middle,” attempts to connect the four poles (innovation-low prices or product-market) that will ultimately determine the successful correlation that will lead companies to enter the Big Middle, i.e., the market area where the largest retailers and the largest share of consumers meet. There is widespread concern about the need to make some new theoretical assumptions about the evolution of retailing. In this direction, it is suggested that a mechanism of two different development or survival options is emerging retail feudalism and participatory retailing.