The retail environment today is far more complex and increasingly faces greater challenges. They are faced with complex inter-related issues such as ever-transient customer preferences, diminishing low operational margins, competition from existing & emerging store formats and the continuous pressure to create increasing value for share holders. This compels the retailers to perpetually innovate in every set of activity they manage including merchandise assortment planning, forecasting, procurement, logistics, merchandise returns, managing multiple sales channels and vendor relationships.

The retail industry is also witnessing many physical and technological changes leading to consolidations, restructuring and business model reorganizations. Retailers today face greater challenges in acquiring new customers, satisfying, retaining and acknowledging their buying through loyalty programs, promotions and managing the Customer Lifetime Value (LTV) in a multi channel environment. Better pricing models, assortment planning, improving customer's in-store experience and better marketing campaign are some of the challenges the retailers face.