Influence of retail store environmental cues on consumer patronage behavior across different retail store formats: An empirical analysis of US Hispanic consumers

This study examined the influence of Hispanic consumers’ perceived importance of apparel retail store environmental cues and demographic characteristics (i.e., age and the number of years lived in the US) on their apparel store patronage behavior across various retail store formats. Three apparel retail store environmental cue dimensions were identified. Of the three dimensions, Customer Service appeared as a significant determinant in Hispanic consumers’ decision to shop at department stores, specialty stores, and mass merchant stores. Convenience was significantly, but negatively, related to the use of specialty stores. Physical Atmosphere appeared as significant determinants of Hispanic consumers’ use of Internet websites. The respondents’ shopping frequency at department stores, Internet websites, and catalogues was significantly different based on the respondents’ age and number of years lived in the US This study offers insights for apparel retailers in building effective retail store environments to attract Hispanic consumers.     

Large format stores and the introduction of new regulatory controls in South Korea

Since 1996, when Korea's retail industry was liberalized, new store formats such as large discount stores, have grown, it was widely believed, at the expense of incumbent rivals such as traditional markets and small operators. This paper seeks to empirically test this proposition: an important underpinning to new regulatory control policies. Research involved a spatial analysis of traditional markets (1456), large discount stores (408), and super-supermarkets (SSMs or hypermarkets (729)) spread throughout the country, in order to examine the scale and scope of the influence of the new retail store formats. The research is supportive of the ‘Traditional Commercial Activity Protection Zones’, which protect small and medium-sized enterprises (SMEs). From the perspective of traditional markets, it may be necessary for the South Korean government to promote additional, more proactive, support policies for SMEs.     

Retailing strategy for customer growth and new customer attraction

The image that current and potential customers have of a retail store affects the magnitude of patronage at that store. In attempting to increase store patronage, management of a retail store must look to people who already are customers, as well as to people who are not current customers. The appropriate strategy depends upon the dimensions used by people in their evaluation of the store. The hypothesis is tested that the strategy used for gaining increased patronage from customers may have to differ from that used to gain patronage from noncustomers.Field survey techniques were used to collect data from 225 adult females. Respondents evaluated three large retail department stores, which were believed to have distinct images in the minds of female shoppers, on the basis of a set of 12 semantic scales that represented various store attributes. Each respondent indicated frequency of shopping at each store. The data were analyzed by two different multiple discriminant analyses. For the customer growth strategy, the semantic scale measures were used to develop a discriminant model for each store to determine which attributes would be the best predictors of shopping frequency. The analysis relevant to the strategy of new customer attraction differed. First, shoppers were classified as loyal to one store on the basis of their rates of shopping at each store. Second, the 36 attribute measurements (12 scales for 3 stores) were factor analyzed, and three factors were extracted. Those attributes which loaded highest on each of the factors for each store were used as predictor variables in the discriminant analysis.The results of this study indicate that different marketing strategies may be required for increasing sales to existing customers and attracting new customers. In addition, consumers do not necessarily differentiate similar type retail stores on the same dimension.     

中国实体零售企业运营效率及其影响因素研究——基于随机前沿分析方法

近年来，零售产业发生较大变化，实体零售企业纷纷关闭门店收缩经营，探讨新时期实体零售企业运营效率水平及其影响因素具有现实意义。文章利用2007—2016年实体零售企业门店调查问卷数据，采用随机生产前沿和随机成本前沿等不同模型，检验营业面积和员工数量两种投入要素情况下的零售企业生产函数特征，例如规模报酬效应、产出弹性以及规模经济效应等，同时检验实体零售门店商圈竞争度、门店经营历史、商品周转天数、日交易量和客单价等因素对门店运营效率的影响效应。结果发现，我国实体零售企业处于规模报酬不变阶段，专卖店和百货店的运营效率较高，而超市和购物中心的运营效率较低；以及门店经营历史、日交易量和客单价对门店运营效率具有正向影响。最后针对实体零售企业门店经营决策提出管理建议。     

An empirical analysis of tenant location patterns near department stores in planned regional shopping centers

The location of a store within a mall can affect the sales and profits of the store and its neighbors, and those of the mall׳s owner/developer. Because the interests of retail stores and the mall׳s owner/developer with respect to choice of location might not coincide, bargaining power might come into play. To assess empirically whether relative bargaining power as between a retail store and the mall owner/developer affects store location within a center, we focus on locations of stores near the department store tenants of malls. Department stores might have the bargaining power necessary to affect which tenants are chosen as neighbors of the department store.Using data collected from 148 regional shopping centers (malls) in 2007 in the five westernmost provinces of Canada, we examine the relationship between variables that reflect store location patterns near a department store׳s entrance, and variables associated with the bargaining power of developers. We find that the density of stores selling comparison shopping goods is larger near department stores within centers that are older or have a larger gross leasable area. In addition, such density is negatively related to the number of department stores contained in the center. Because a shopping center׳s age, gross leasable area, and the number of department stores in a center are expected to be associated with a developer׳s bargaining power, the above findings are consistent with the hypothesis that the store location patterns near department stores depend on the relative bargaining power of the developer and the department stores.     

Evaluating store location and department composition based on spatial heterogeneity in sales potential

In this paper, we extend a retail location evaluation model with the possibility to include the effect of department size adaptation at the store level. We relate department-level store sales to a store's competitive and demographic environment, thereby providing richer insights into the drivers of department sales than a model of just aggregate sales. Further, we accommodate heterogeneity in consumer characteristics over space by using zip code level data and unobserved spatial effects in department sales by including spatially autocorrelated error terms.Using spatial panel data for 30 clothing stores belonging to one Dutch retail chain, we demonstrate how to use the modeling approach to analyze and predict sales performance of new and existing stores. We show that the predictive performance of our model is superior to that of a benchmark model that does not include spatial autocorrelation.     

Navigating the ‘retail apocalypse’: A framework of consumer evaluations of the new retail landscape

Strong signals exist for a permanent restructuring of retailḍing, where traditional physical retailers may not fully recover. Such transformation will have vast implications for consumers, the industry, and society in general. This study explores U.S. consumers’ evaluations of these profound changes sometimes referred to as the ‘retail apocalypse.’ Two studies, a content analysis of reader comments in response to articles featuring reports on large-scale store closures, and structured online consumer interviews, provide insights into consumers’ perspectives. We include consumer-derived explanations for the decline in physical retail, and the growth of online shopping, as well as anticipated consequences for both, individual consumers and society in general, in a conceptual framework. We find many consumers lamenting the disappearance of physical retailers. Most expect negative consequences for themselves and society. However, many consumers also describe physical retailers as often unable to deliver on basic retail functions, and many are accepting of a future with very few physical stores. Based on these findings, we develop practical implications for the retail industry and public policy, as well as future research opportunities.     

A Decision Model for E-commerce-enabled Partial Market Exit

Struggling retail chains often try to recover profitability by closing some of their stores. The challenge in this strategy lies in determining how many stores to close, as store exit has implications for both the customers and the supply chain. After a store closes, its customers are lost forever to the competition, unless there is a surviving open store nearby or an electronic alternative such as an e-store. From the supply chain perspective, after a store closes, its supporting regional distribution center is left with less business, and thus reduced viability. This paper develops a decision support model to study the profitability of alternative retail network structures by varying the proportion of stores that are closed, the average price sensitivity of demand, the price difference between the online store and the traditional retailers, and customer retention rates.     

Measuring retail performance in an omni-channel world

Abstract

Driven by global advances in technology and changes in consumer buying behavior, brick-and-mortar retailers are being forced to become omni-channel retailers. This calls for new metrics for evaluating retail performance. We examine the challenges facing the retail industry, the metrics that traditional brick-and-mortar stores have used as well as the new metrics that retail industry experts are suggesting for online retailing. A conceptual framework for omni-channel retailers is suggested.     

More than window dressing: visual merchandising and austerity in London’s West End, 1945–50

Abstract

In the aftermath of the Second World War, the fashion departments of London’s West End department stores were not only challenged by austerity and bomb damage but also by the growth of multiple retailers selling branded ready-to-wear goods. This article investigates how department stores responded by investing in display and visual merchandising to attract custom and rebuild their fashionable reputations. It argues that the difficulties caused by austerity conditions forced department stores to embrace new retail methodologies that helped them adapt to the changed circumstances of post-war fashion retail and compete with multiple retailers.     

Themed flagship brand stores in the new millennium: theory, practice, prospects

The flagship brand store is an increasingly popular venue used by marketers to build relationships with consumers. As we move further into an experience economy in the new millennium, retailers are refining the flagship brand store into new forms such as the themed retail brand store. This new form not only promotes a more engaging experience of the brand’s essence but also satisfies consumers looking for entertainment alongside their shopping. In this article, we conceptualize and explore themed flagship brand stores in terms of the mythological appeal of the narratives conveyed by their physical and symbolic structure. We utilize a field study of ESPN Zone Chicago to examine these features in a sports-themed retail brand store. Finally, we offer some projections, based on our research, of the possible transformations of the flagship brand store as the new century unfolds. We conclude that mindscape-related themes, which combine entertainment, therapeutics, and spiritual growth, are at the frontier of retail theming.     

Competition,contested retail space and the rise of the department store in Imperial Germany

This paper explores the highly contested evolution of the department store in Imperial Germany from an open systems theory perspective. Existing approaches advocating an open systems interpretation highlight the importance of environmental conditions and their feedbacks to the organization and performance of the retail institution. In general, this framework lends itself well to an interpretation of German department store history as many of the critical demand-side and supply-side conditions are also present. However, one set of conditions remains understated in the previously published literature: to understand German department store evolution, it is vital to appreciate the importance of the changing nature of competition, social relations among retailers and regulation on the performance and internal organization of the retail institution.     

When nature calls: The role of customer toilets in retail stores

The scarce previous literature indicates that the customer toilet facilities influence shopping value and should be a concern for retailers. However, customer toilets are often inadequately capitalised in retail stores. This study aims to provide a scientifically robust argument about the critical role of customer toilets in retail stores. The explanatory survey data (n=655) from a Finnish out-of-town department store is examined to explore (1) the importance that consumers place on the customer toilets and (2) the effect of toilet usage on actual shopping behaviour. The results support the assumptions of previous literature by suggesting that customer toilets are considered as an important store attribute and, more importantly, the use of toilets is associated with prolonged in-store time which, in turn, increases spending. The findings offer both academic and managerial contribution and encourage academics and practitioners to regard customer toilets as more than mere an unwanted property expense and discover their full marketing potential.     

Store and store format loyalty measures based on budget allocation

In highly competitive environments, such as retail markets, characterized by a growing heterogeneity of demand and the proliferation of new retail formats, cross-shopping behavior between stores and formats is becoming increasingly common. This process makes customer loyalty a key strategic challenge for retailers that want to consolidate their position within the market. To contribute to the analysis and comprehension of this reality, the authors propose and assess different objective indicators of store loyalty, store format loyalty, and intra-format store loyalty based on budget allocation. Specifically, they analyze the role of retail format in observable loyalty patterns in a market. Through an empirical analysis of grocery purchase patterns of a sample of 580 Spanish households, the authors find that diverse objective loyalty indicators based on budget allocations provide very similar information from a practical point of view. They also find that consumers' regular use of various formats (specifically, supermarkets, hypermarkets, and discount stores) for their purchases explain observed disloyalty better than does purchasing in several stores within these formats. The observed patterns reveal that retail formats define differentiated store profiles that relate to the benefits sought in different purchase situations.     

The effects of shopping value on retail outcomes: a comparison between department stores and hypermarkets

Shopping in various retail formats involves both utilitarian and hedonic value. Taiwan residents shop at department stores and hypermarkets frequently, compared to other retailers. This study contrasts the differential effects of shopping value on retail outcomes in department stores and hypermarkets. The results support predicted relationships: (1) in the department store context, (a) hedonic shopping value perceived by shoppers is higher than utilitarian shopping value; (b) hedonic shopping value has a greater effect on satisfaction and word-of-mouth than utilitarian shopping value; and (2) in the hypermarket context, (a) utilitarian shopping value perceived by shoppers is higher than hedonic shopping value; (b) utilitarian shopping value has a greater effect on satisfaction and repatronage intentions than hedonic shopping value.     

Managing heritage brands: A study of the sacralization of heritage stores in the luxury industry

We investigate the concept of the heritage store, that is, the locations that lies at the heart of a brand׳s identity and history. Based on store observations and interviews with managers and sales personnel in the luxury industry, we analyze the characteristics of heritage stores and their role in the management of heritage brands. We show how managers sacralize a store׳s heritage to nurture the value proposition of the brand. Our analysis yields new insights into retailing, introducing the concept of the heritage store and emphasizing its sacralizalization. We outline the implications for retail marketing in developing and maintaining the sacralization of heritage stores.     

Strategic human resource management in department stores: An historical perspective

The department store as a retail format created special demands on the organization of staff and the creation of a harmonious and productive workplace. Despite a lack of theoretical knowledge of human resource management strategy, early 20th century department store owners used the business strategy to guide strategic decisions about internal communication and staff training. The most obvious area of training was in selling. However, the more innovative department stores also recognized the need for management development programs. This study examines how the business strategy which embraced business growth, efficiency and effectiveness, building the firm's image and creating a supporting culture, strategically guided selected human resource management policies and practices in an Australian department store.     

Two-Stage Determinants of the Organic Food Retailing Landscape: The Case of Manhattan,New York

Retail sales of organic food products have been increasing faster than any other category of food and have penetrated mainstream retail grocery outlets. The majority of the literature on organic markets explores the socioeconomic characteristics of consumers, linking these traits to the probability of buying organic food, and it suggests that access to organic food is an important but overlooked factor in such studies. More recently, research focusing on food retailer marketing strategies for organic food finds that traditional strategies such as price promotions are largely unsuccessful with increasing sales for the organic food consumer. This article focuses on the retailer decision to offer organic food for sale. We model the decision as a two-stage process, where the retailer’s first decision is whether to sell organic food, and the second decision determines how many different organic products to offer for sale. In doing so, by using data collected in stores, we assess the organic food retail landscape in Manhattan, NY. We find that the decision to offer organic food for sale depends on the neighborhood socioeconomic characteristics, and the amount of organic food offered for sale depends on the size of the store.     

The effects of in-store themed events on consumer store choice decisions

Retailers are increasingly using in-store events to provide shoppers with unique experiences that will enhance shopping value and help differentiate their stores from competitors. However, relatively little is known about how consumers respond to experiential retail events in terms of their store choice decisions. The purpose of this research was to find out how in-store retail events affect consumers in terms of their store choice decisions. The paper presents findings from a discrete choice experiment that manipulated the presence of different types of in-store themed events in a do-it-yourself (DIY) category. Participants were 312 randomly recruited residents of Melbourne, Australia, who had recently shopped at a hardware store. The experiment was implemented as a mail-back survey. Using logit models the authors assess the effects of the in-store events along with those of various traditional store attributes, including store appearance, price image and distance, on consumer store choice decisions.     

Open all hours: spatiotemporal fluctuations in U.K. grocery store sales and catchment area demand

Conventional population estimates do not account for spatiotemporal fluctuations in populations over a diurnal timescale at the level of retail store catchments. This presents challenges for the retail location-based decision making process which seeks to predict sales volumes and their temporal characteristics prior to new store construction. We present a novel analysis of the temporal fluctuations of store sales, evidencing links between the spatiotemporal distribution of specific population subgroups and temporal store sales. Previous research linking spatiotemporal populations and store sales is limited owing to the fact that commercial data are not openly available to academic research. However, this research has unprecedented access to store level temporal sales data and an established loyalty card scheme from a major UK grocery retailer making these analyses possible for the first time. Additionally, we demonstrate that current store classifications were inadequate for grouping stores with similar sales profiles and propose four new clusters of stores based on the times of the day that they generate revenues. This development has clear academic and commercial benefits, aiding our understanding of consumer behaviours and a novel solution for improved location modelling. We lay the foundations for further research building spatiotemporal demand fluctuations into retail location models.