Structural Changes in the Us Retailing Industry and Legal, Economic and Strategy Implications for the Us Real Estate Industry
41 Pages Posted: 17 Feb 2006 Last revised: 14 May 2021
Date Written: 2004
Between 1995-2003, the US retailing industry experienced substantial decline. This was manifested in layoffs, changes in management, inventory write-downs, discontinuation and streamlining of online marketing efforts, bankruptcy, reduced capital expenditures, store closings and cost cutting. In many companies in this industry, real estate accounted for a substantial portion of total assets (land, buildings/fixtures and lease interests), capital expenditures and operating costs. This paper analyses the economic, legal and strategic impact of the Internet and structural changes and industry restructuring in the US retailing on the US real estate sectors. The article's contributions to management theory, law and economics are in: a) improving the understanding of the analysis of structural changes in large industries, b) showing the relationships and dependencies among strategy, change management and regulation, c) critiquing the standard models/theories of industry growth and competition, d) showing why the standard method of analysis of antitrust and competition for regulatory purposes (industry concentration) may not be accurate in certain circumstances, e) introducing new models/theories of competition, and change, f) analyzing economic issues in real estate, g) analyzing real estate as a major component of retailers' supply chain.
Keywords: Industry restructuring, strategy, change management, law and economics, real estate, healthcare facilities
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