Buy custom An examintaion of the changing nature in retail nature and the potential impact on future operations
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| Topic: |
Business
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| Number of pages / Number of words: |
9 / 2462 |
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If interest rates are low it encourages consumers to spend as the cost of borrowing money is much cheaper. This is especially beneficial among firms that sell ‘big ticket goods’ e.g. white goods such as fridges. This is due to customers often needing financial support for funding as they are expensive...
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For example car companies and high street shops such as PC World, low interest rates could create opportunities. As there will be higher demand for these goods, and therefore be able to sell more units. On the other hand it could mean that unless retailers are prepared for the surge in demand then many may fail to meet customer demands or may not be able to produce stock quick enough...
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