Wheel of Retailing - This concept was developed by the American economist McNair back in the 1930s. It explains the change in operating forms in retail using an identical basic pattern of behavior. Innovative dealers are entering the market with new, aggressively priced forms of business.
You can calculate better because they come onto the market with tight product ranges, have low overhead costs and offer little service. Over the years, the range has been expanded, the administrative burden increases and fewer and fewer product ranges are managed aggressively. Ultimately, they change from price to quality competitor. This creates a gap in the market for new, aggressively priced dealers and the cycle begins again.