Retailing theory has failed to explain the massive growth of direct marketing and the evolution of factory outlets and the heightening battle between brands and powerful retail outlets. This is because of the failure of the theory to consider supply side considerations. On the other hand, channel theory largely fails to consider the role of the consumer. We argue that retailing theory must integrate supply side influences if it wants to remain relevant in present circumstances and we suggest that channel theory would be a good place to start this integration.
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