Question

As a warehouse club manager, you have noticed that this format's market share has stabilized. As such, you fear severe profit declines as warehouse clubs are now in the _____ stage of the retail life cycle?

1) introduction
2) growth
3) maturity
4) decline
5) vulnerability

Answer 1

Warehouse clubs with stabilized market share experiencing profit declines are typically in the maturity stage of the retail life cycle, where growth slows and competition becomes more intense.

Step-by-step explanation:

When a warehouse club’s market share has stabilized and there is a fear of severe profit declines, it suggests that the warehouse clubs are likely in the maturity stage of the retail life cycle.

This is the stage where growth has tapered off, market saturation has been reached, and businesses may start to see a plateau or decrease in profits. Strategies during this stage often involve differentiation, improving operational efficiency, and seeking new markets to maintain a competitive edge.