Certified Professional Category Analyst (CPCA) Practice Question

What is a contributing factor to channel blurring in the retail industry?

1. Online retailers competing with traditional outlets

2. Increased shopper demand for lower prices

3. Higher prices for goods across all categories

4. Decrease in physical store visits

The correct answer is: Online retailers competing with traditional outlets

Channel blurring in the retail industry refers to the phenomenon where the distinctions between different retail channels—such as online and traditional brick-and-mortar stores—become less clear. A significant contributor to this is the competition that online retailers pose to traditional outlets. As online shopping becomes more prevalent, traditional retailers are compelled to enhance their own online presence and potentially alter their store experiences to align with consumer expectations that have been shaped by online shopping convenience and pricing. This shift leads to a blending of strategies and shopping experiences across channels, as traditional retailers adopt omnichannel approaches, integrating their offline and online sales efforts. For example, many brick-and-mortar stores now provide options like buy online and pick up in-store, which highlights this blending of channels. This competitive landscape drives retailers to reconsider how they present their products and services across platforms, further contributing to channel blurring. The other factors listed, such as increased shopper demand for lower prices, higher prices across categories, and decreases in physical store visits, do impact the retail environment but do not directly address the structural changes and competitive interplay that lead to channel blurring. They might influence overall retail dynamics, but the primary driver of channel blurring is rooted in the competition between different retail formats, predominantly from online