As retail institutions are economic entities they ALSO confront an ENVIRONMENT. Retail environment is made up of customers, competitors and changing technology. The changes in the external environment can alter the profitability of retail organizations. If an organisation is not able to cope with its external environment it will SOON vanish from the MARKET. Thus, the birth, success or decline of different forms of retail enterprises many a TIMES is attributed to the business environment.

As retail institutions are economic entities they also confront an environment. Retail environment is made up of customers, competitors and changing technology. The changes in the external environment can alter the profitability of retail organizations. If an organisation is not able to cope with its external environment it will soon vanish from the market. Thus, the birth, success or decline of different forms of retail enterprises many a times is attributed to the business environment.