Editing Retail (section)

==Challenges==
To achieve and maintain a foothold in an existing market, a prospective retail establishment must [[barriers to entry|overcome the following hurdles]]:
* [[Regulations|regulatory]] barriers including:
** restrictions on real-estate purchases, especially as imposed by [[Municipality|local governments]] and against "big-box" [[Big-box store|chain retailers]]
** restrictions on foreign investment in retailers, in terms of both absolute amount of financing provided and percentage share of voting stock (e.g. [[common stock]]) purchased
* unfavorable [[Tax code|taxation structures]], especially those designed to penalize or keep out "big box" retailers (see "Regulatory" above)
* absence of developed supply-chain and integrated IT management
* high [[Competition (economics)|competitiveness]] among existing market participants and resulting low [[profit margin]]s, caused in part by:
** constant advances in product design resulting in constant threat of product obsolescence and price declines for existing [[inventory]]
* partially due to loss in business: lack of work-force, often including management, that is properly educated and trained
** lack of [[education in the United States|educational infrastructure]] enabling prospective market entrants to respond to the above challenges
* direct [[e-tailing]] (for example, through the [[Internet]]) and direct delivery to consumers from manufacturers and suppliers, cutting out any retail [[reseller|middle man]].<ref>
{{cite book
 | last1 = Nicholson
 | first1 = Walter
 | last2 = Snyder
 | first2 = Christopher Mark
 | author-link2 = Christopher Snyder (economist)
 | chapter = Perfect Competition in a Single Market
 | title = Intermediate Microeconomics and Its Application
 | url = https://books.google.com/books?id=Tr4TCgAAQBAJ
 | edition = 12
 | location = Boston
 | publisher = Cengage Learning
 | date = 2014
 | page = 300
 | isbn = 9781133189022
 | access-date = 25 September 2020
| quote = One question raised by the growth of Internet selling is whether there will remain a separate role for retailers over the long term. If the Internet allows producers to reach customers directly, why would any role for retailing 'middlemen' remain?
}}
</ref>