Description
Unformatted Attachment Preview
Purchase answer to see full attachment
Explanation & Answer
Attached.
Running Head: WEEK 6 ASSIGNMENT WIKI
Week 6 Assignment Wiki
Name
Institution
Course
Date
1
WEEK 6 ASSIGNMENT WIKI
2
Claim and Hypotheses
The Claim in this article is that the retail sector has a great role to play towards the
development and economic growth of society. One major claim about the role of the retail sector
in society is the stabilization of prices of consumer goods. As a result, the retail sector
determines the expenses that consumers incur in the prevailing market. This sector also plays the
role of creating financial stability, thereby alleviating the level of poverty in society. The retail
sector also provides a place for monetary circulation since a significant portion of the income
which households spend on their basic needs and necessities are injected in the retail sector.
Supermarket chains play a critical role in the sustainability of the retail sector since they can
manage to offer their goods and services at low prices and still manage to make profits by taking
advantage of the economies of scale.
There is no doubt that the health of the retail sector determines the economic growth and
development of a country's financial sector because it is one of the points of household
consumption, which provides an avenue for the free circulation of currency in the economy.
Besides, the ability of the retail sector to meet the needs of the general population at the lowest
cost possible has a great significance to society. As such, exploring any topic that focuses on the
strategies of improving their sustainability is important for governments and the consumers as
well. Therefore, any instability in the financial sector and challenges facing the economy directly
affects the retail sector. Such economic stress may force even large retailers like Walmart to
downscale their workforce and even close down their stores and outlets despite their financial
stability (Hamza & Nazim, 2016). Many retail chains have been forced to close down their
operations due to the financial challenges they face in the industry. Some retail chains have been
unable to cope with the dynamic shifts in economic conditions, forcing them to exit the industry
never to revive their operations again.
WEEK 6 ASSIGNMENT WIKI
3
Whenever a retail sector is restructuring its operation to remain afloat in a tough financial
situation, the retail chain always targets the less profitable outlet. Retailers know ...