Major Problems Of The Retail Industry

Auditing

Auditing is another problem that the retail industry faces on a regular basis. Retail businesses are regularly engaged in competition with one another, and this competition can create price wars, forcing a need to keep tight control over inventory and other important data. Metric Stream, Inc. notes that the retail industry is often faced with inefficient and poor auditing plans that make competing with other companies difficult. The company notes that existing auditing systems may be outdated and provide inadequate audits needed to stay competitive.

Economic Challenges

Another area of challenge for the retail industry is the economic uncertainty it faces moving forward. The retail industry as a whole is largely dependent upon the economic well being of the nation. As the nation prospers and people have more money to spend, the retail industry generally flourishes. However, in more difficult economic times, the retail industry is often faced with potential shrinkage. Columbus IT also indicates that the future uncertainty of global economic markets makes economic planning difficult in the retail world.

Technology

Keeping up with the pace of modern technology is another problem the retail industry faces. For instance, retail point of sale technology often uses computer systems that are several years behind the computer industry as a whole. An article in Mobile Commerce Daily by Peter Finocchiaro points out that the inability of retail industry technology to keep up with initiatives such as mobile digital coupons is a problem that the industry regularly faces. Given the rate of turnover and the constantly changing economic environment, constantly upgrading and keeping their equipment and networks running on the newest technologies can be difficult for retail leaders.