Forward-looking firms know their individual strategies must be modified as retail
institutions evolve over time. Complacency is not desirable. Many retailers have
witnessed shrinking profit margins due to intense competition and consumer
interest in lower prices. This puts pressure on them to tighten internal cost controls
and to promote higher-margin goods and services while eliminating unprofitable
items. Let us see how firms are reacting to this formidable environment
through mergers, diversification, and downsizing, as well as cost containment
and value-driven retailing