All industries deal with the factors of supply and demand. The retail industry deals with it on a daily basis. Certain circumstances can affect the supply and demand of the industry. Some circumstances would be, substitute goods, items sold, competition of stores, and holiday seasons. Substitute goods are easily make one of the largest impacts on the supply and demand in retail. Companies such as Nike and Under Armor are a prime example. Consumers can buy the same thing from each company, depending on which one they buy is determined by prices and quality. In the economy the law of supply states that, when the price of good goes up then the supply goes up and when the price of the good goes down then the supply goes down. The law of demand states that, when the price of the good goes up then the demand goes down and when the demand goes up the prices go down. It is important for retail stores follow the supply and demand law because stores need to know how much and how frequently they need to have their items stocked.
"Retail Demand Planning | Inventory Management | Supply Chain Management | Retail - Industries - GRA - Australia." Retail Demand Planning | Inventory Management | Supply Chain Management | Retail - Industries - GRA - Australia. N.p., n.d. Web. 09 May 2013.
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