Shrinking Middle-Class Consumption Of Department Store

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The learning curve, supplier relations, and capital investment that used to be required to enter the industry has decreased but are not insignificant. The large economies of scale that department store possess will allow them to continue to produce at cheaper prices than the new entrants and they also do not have the same brand loyalty as old stores. Degree of Rivalry The level of rivalry between existing competitors is at an all-time high. Despite this universal market decline, mid- range department stores is the weakest segment. Research shows that “there is a shrinking middle class consumption” and consumers are falling into two extremes (jewishbusinessnews, 2015). If consumers are going to department stores there is a higher likelihood

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