Competing successfully in a dynamic world

In many ways the British retail sector is currently going through a more colourful and dynamic phase than we have seen for some time. Innovators abound, especially in areas such as leisure, sports goods, toys; fashion innovation is a whole story in itself. Diversification continues apace: supermarkets move into pharmacy and practically everybody moves into DIY. In food, the convenience store proliferates. Even in the department store sector, not known for its speed of response to changing conditions, some groups are searching around for ways of fighting back. The authors of this feature suggest that, in this time of rapid change, retailers must be flexible as well as observant. Consumers increasingly demand choice and specialisation where once a mass merchandising strategy was adequate; consumers want self‐expression and self‐fulfilment. How to reconcile these factors with the retailer's need to control margins and build buying volumes?