The dialectic of the retail evolution

Abstract

A profound trend in the retail arena is under way. This trend is evidenced by a series of recent phenomena, like the significant growth of direct response advertising; the convergence of mail-order houses and traditional retailers as each crosses over to the other's territory; the advent of television shopping networks; the significant investments in electronic, in-home shopping networks such as Prodigy (formerly Trintex); and the proliferation of personal computer information networks like Compuserve, Dow Jones, and Genie. Four theories that explain retail change are investigated. After examining retail evolution during this century the conclusion is reached that the “dialectic process theory” offers the most encompassing, simple, and logical framework for the understanding of recent retail metamorphoses. The contention that there are two established retail forms is offered: “traditional” (store-based) and “direct marketing” (home-based). Both forms have been converging in recent years. As this convergence has taken place, a new retailing form has started to emerge: “electronic direct marketing.” In this system, the marketer uses computers, telecommunication, and video display technologies, rather than physical stores or print media, to reach consumers and to build an interactive relationship with them. A conclusion is drawn that this emerging form of retailing will come to have a significant and lasting effect on future retail institutions in the United States.