In the context of fitness apparel, which factor would be least likely to enhance a retailer's negotiating position?

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In the context of fitness apparel, high switching costs would least likely enhance a retailer's negotiating position. Switching costs refer to the expenses or losses a consumer incurs when changing from one supplier or product to another. While having high switching costs may create loyalty in consumers, from a retailer's perspective, it does not directly strengthen their leverage in negotiations with suppliers or manufacturers.

In fact, retailers may find it challenging to negotiate favorable terms if consumers feel locked into a brand due to high switching costs, as it can limit the retailer's ability to push for discounts or improved terms.

On the other hand, factors such as strong alternative brand options, the size of the retailer's customer base, and exclusive distribution arrangements can significantly enhance a retailer’s negotiating position. Strong alternatives provide competition, enabling retailers to leverage various options to negotiate better pricing or terms. A large customer base establishes market influence, allowing retailers to command better deals from manufacturers aiming to reach more consumers. Exclusive distribution arrangements can provide unique bargaining power, as they create a scenario where the retailer may be the sole conduit for a brand in a certain market or region, leading to stronger negotiation leverage.

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