Effect of Technology and Globalization on the Retail Industry Paper (Research Paper Sample)

The Impact of Technology and Globalization on the Retail Industry
Name
Institution
The retail industry is one of the most affected sectors as a result of globalization and technology, which have seen a shift in consumer trends and purchasing patterns. Before the advent of technology and globalization, the retail industry was primarily based on the brick-and-mortar model, requiring retail businesses to invest in several physical outlets to reach as many customers as possible as well as increase their brand visibility. Perhaps no retail chain exemplifies this model better than Wal-Mart, whose presence in every American neighborhood made it a ever-present feature in the urban and suburban built environment. Growth was driven by the ability to attract as much traffic as possible to the physical stores, and tempt customers into impulsive buying through appealing displays of products. At the same time, offering products at the cheapest prices was a major competitive advantage factor under the brick-and-mortar model. However, technology and globalization have transformed the retail industry by allowing businesses to sell their items online, and in doing so cut on labor costs and save on utilities like rent for store spaces.