1. What retailing strategies do you recommend for the new retailer for their first two years in business-what merchandise, what store image, and what location(s)? The wheel of retailing suggests that new retailers enter the mar- ketplace by offering goods at lower prices than those of their competitors and that after they gain a foothold they "trade up," improving their facilities and their merchandise assort- ment. Think about a new retail venture, a specialty store that sells timepieces, such as men's and ladies' watches and clocks.