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Advances in computer technology have also helped retailers spot new opportunities, such as the latest fashions. These styles can be .recreated on a computer, and the designs can be transmitted electronically to manufacturers for production. New merchandise can be produced and put on store shelves in weeks rather than months. This speed gives retailers like Dillard's a competitive advantage over other fashion retailers.

As margins drop and competition intensifies, retailers are becoming ever more aware of the advantages of private-label brands, or those brands that are designed and developed using the retailer's name. Because the cost of goods-typically makes up-between 70-and 85. percent of a retailer's expenses, eliminating middle-men can shave costs. As a result, prices of private-label goods are typically .lower than for national brands, giving customers greater value. Private-label branding isnot new.

For decades, Sears has fashioned its Kenmore, Craftsman, and Diehard brands into household names. Lately, Wal-Mart has begun rolling out its own private-label brands, such as White Cloud paper products, Spring Valley nutritional supplements, Sam's American Choice laundry detergent, Ever Active alkaline batteries, and Ever Start auto batteries, with much success .Its Ol’Roy dog food and Sam’s American Choice garden fertilizer are now the best-selling brands in their categories. As the nation's largest retailer, Wal-Mart's foray into private-labels worries many brand marketers. Such as Procter & Gamble, which manufactures Tide laundry detergent. Whereas Wal-Mart was once it3 biggest customer, the giant retailer is transforming itself into its biggest competitor with the introduction of Sam's American Choice laundry soap that sells for 25 to 30 percent lower. And while Wal-Mart's private labels might not steal significant sales away from popular brands like Tide, in the long run smaller second- and third-tier brands that don't bring consume to shelves may have a difficult time surviving.