Barriers to the advancement of modern food retail formats: theory and measurement

The recent expansion of global food retailers into emerging economies has made the study of food retail modernization especially relevant at this time. We present a framework to analyze limitations to market share growth of retail formats based on diffusion across consumer segments and by product category. We then propose a measurement approach, based on consumer surveys, that quantifies the impact of these processes on supermarket market share. Food retail modernization is then examined in Hong Kong by this approach for two points in time. In a 1995 diagnostic study, we find that geographic and economic segment diffusion of supermarkets is complete, but that product category-dependent diffusion (specifically perishables) is not. The latter, thereby, becomes the major restriction on supermarket share gain. In 1999, a second study measures the impact of the introduction of superstores, a large modern format, on the perishable restriction to modern format share growth. Consumers perceived superstore perishables to be superior to supermarkets’, but these views had little impact on the ability of modern format to wrest additional share from traditional markets. We discuss diagnostic and monitoring applications, and extensions of the approach to other retail contexts.     

The role of warehouse club membership fee in retail competition

There are several explanations as to why warehouse clubs charge membership fees and how the fees play a role in the competitive landscape of the retail grocery market. We provide another insight into the nature of the membership fee using a model of price competition between a warehouse club and a supermarket. We show that the warehouse club's membership fee is an optimal competitive reaction to the supermarket's promotional activity. The more frequent the promotion is, the lower is the membership fee. However, the larger the promotion depth is, the higher is the fee. We show that the cherry-picker segment plays a key role behind these results. Our analysis not only provides a justification of warehouse club membership fees by discovering its duality with the cherry-picker segment but also gives managers several guidelines on yearly fee and retail price decisions.     

Fighting off the big guys: comparing competitive retail services strategies in industrialized and developing world settings

As global trends regarding increased mergers and acquisitions continue, small local retailers must learn how to fend off these strong attackers. We assess key services strategies when small-local retailers compete against large-national retailers in industrialized (USA) and developing world (black South African township) retail settings. Of key interest is how theories generated from industrialized world research apply in developing world settings. We found that small retailers fend off large national retailers using virtually identical strategies regardless of the level of economic development.

Configurations of business strategy and marketing channels for e-commerce and traditional retail formats: A Qualitative Comparison Analysis (QCA) in sporting goods retailing

This article applies a configurational approach to study the fit between retail format, business strategy, and multi-channel setup. Its empirical material consists of five case studies, and a data set of 74 sporting goods retailers in Sweden. Our results show that a retailer can create strategic advantages when its multi-channel setup fits with its business strategy, and that retail format is important for explaining differences in growth and profit, the former being assigned to e-commerce and the latter to physical stores. Moreover, the study reveals that to some extent online channels also have positive performance implications for physical store retailers.     

Virtual store layout: an experimental comparison in the context of grocery retail

Interface design and the interaction between customer and computer are factors critical to business effectiveness over the Web. A key aspect of conventional retailing is store layout; an analogous aspect in virtual retail is virtual store layout. This paper reports on an experimental investigation into the use of three different layouts in online grocery retailing: freeform, grid, and racetrack. These three most common conventional retailing layout types were transformed into virtual layouts for computer-mediated interfaces. Subjects in Greece and the UK participated in a laboratory experiment: they were given a planned shopping task with money to spend, and performed their shopping through a virtual store with layout as the manipulated variable. The results show that layout significantly affects online consumer behavior, but that predictions generated from the literature of conventional retailing about differences in the outcome of layouts do not generally hold in a virtual setting. Some of the findings can be explained by reference to research in Human Computer Interaction (HCI).     

Impacts of retail brand personality and self-congruity on store loyalty: The moderating role of gender

The present study was an effort to investigate the impacts of both retail brand personality and self-congruity, using them together in the same study, on store loyalty. Subsequently, this study explored the moderating role of gender in these relationships of retail brand personality and self-congruity with store loyalty. Questionnaire was used to collect data (n=355) using systematic sampling from department store shoppers of age 18 years and above in Kolkata, a metropolitan city of India. Multivariate data analysis techniques like exploratory factor analysis, structural equation modeling were used to analyse the data. Results revealed that both retail brand personality and self-congruity constructs have positive impacts on store loyalty and gender significantly moderates these impacts. Arguably, this paper is the first to examine the three constructs namely, retail brand personality, self-congruity and store loyalty using them together in the same model. Academic and managerial implications are further discussed.     

Big-box retailing and the urban retail structure: the case of the Toronto area

This paper examines the growth and impact of power centres and “big-box” retailers through the 1990s in the Greater Toronto Area (GTA). The data reveal that 72% of big boxes were added in the previous nine years and that twice as many opened in the suburban fringe as compared to the equally populated central area. Of all big-box locations, 59% are on industrial lands and close to expressways. Of all postal codes in the GTA, 11% account for 47% of the big-box locations and a 19% versus 7% of 1989–1995 sales growth. Average annual sales per store in the heavily dominated big-box areas is $2+million versus $1.4 million in non-box areas and market shares for the dominant big-box retailers range between 19 and 33% in their respective retail categories. In eight retail sectors in direct competition with big-box retailers, there is an overall decline of −7% in share of total stores. Between 1993 and 1997, the proportion of retail employment within 2 km of a big-box increased from 28 to 43%. This increase is accounted for by additional retail and service firms.     

Human versus spatial dimensions of crowding perceptions in retail environments: A note on their measurement and effect on shopper satisfaction

Perceived retail crowding was originally conceptualized as having two dimensions, but subsequent empirical work in marketing has treated the construct unidimensionally. This paper reports a series of lab and field studies that examine the dimensionality of the construct and its relationship to store satisfaction. Two alternative crowding measures are tested. Results suggest that perceived retail crowding has distinct human and spatial dimensions that affect satisfaction differently.     

The competitive impact of service process improvement: Examining customers’ waiting experiences in retail markets

In this paper, we investigate the impact of a service process improvement in front-end retail operations on the waiting experiences of shared customers, that is, those customers who patronize a retailer as well as its competitors. Our findings from two studies—a field study and a controlled laboratory experiment—suggest that while customers’ waiting time perceptions are independent across competing firms, their waiting time satisfaction is interdependent. As a result, the impact of a retailer's service improvement initiative that reduces waiting times is not merely local to the retailer but propagates to its competitors through its shared customers. Specifically, such an improvement not only raises shared customers’ satisfaction with the focal retailer, it also concurrently lowers their satisfaction with the retailer's competitors. By implication, current approaches that assess the impact of a service process improvement by just measuring the difference in customer satisfaction before and after the improvement may be underestimating the true impact of such improvements.     

Flexibility,labour segmentation and retail superstore managers: the effects of Sunday trading

Research into retail employment relations has focused largely upon the shop floor worker. Relatively little has been written on the role of store management. This paper focuses upon managerial attitudes to one of the major contemporary retail issues- Sunday trading. It examines the composition of the managerial workforce within the DIY and grocery superstore sectors and analyses their attitudes towards Sunday opening. It concludes that, compared to other job categories, these superstore managers perceive there to be greater disadvantages with Sunday working. The implications of this are assessed both in retail management terms and also in the context of debates about restructuring retail employment, labour market segmentation and flexible workforces     

The Asian economic recession and retail change: the implications for retailer strategies in Asia

For almost three years the Asian Economic Crisis has been one of the most talked about influences on the retail sector in the region. This paper argues that the economic crisis has hidden or diverted attention away from the underlying changes in retailing that have been proceeding for much longer.A more dynamic and proactive retail sector appears to be evolving, one which is now less of a 'taker' of the strategies of manufacturers and more of a 'setter' of trends in product development and logistics. European and American retailers often appear to be major catalysts in this process, but this is not to say that the Asian retail sector will not develop in its own way, matched to local needs. What does now appear to be clear is that as economies in the region recover, most of their retail sectors will not go back to 'business as usual'.     

Consumption and the retail change process: a comparative analysis of toy retailing in Italy and France

Set in the context of a review and critique of the retail change literature, this study conceptualizes the importance of cultural diversity in consumption practices, and their dialectical interplay with retail structures. Underpinned theoretically by concepts located in Critical Theory and Bourdieu's studies of 'Distinctions', a grounded approach at a macro-level of analysis is applied to the comparison of the French and Italian toy retail sectors, which serves as an empirical illustration of the conceptual categories and relationships posited. In the comparative analysis of the French and Italian toy retail industry, the links between market structures and macro-economic and demographic factors, on the one hand, and localized consumption habits, on the other, are discussed, highlighting the interplay of the properties of the emergent retail activity and consumption categories of analysis. The impact of global sourcing and market entry of international retailers is assessed. Conclusions point to the importance of the forcefield between localized meaning and the dynamics of toy retail capital. It is argued that the commodity form of toys, together with the values attached to them and the role they play in childhood, is influencing the structures of national toy retail sectors which are also dependent on the overall retail system and broader environmental factors. In this, retail change processes take place as a result of the interactions between the different spheres and their particular expressions cannot be generalized across borders as they depend on the specific dynamics within each system.     

Keeping customers shopping in stores: interrelationships among store attributes,shopping enjoyment,and place attachment

Our research purpose was to identify and test variables that contribute to customer's willingness to continue to shop in brick and mortar stores, hereafter referred to as store loyalty. Specifically, we examined interrelationships among store attributes, shopping enjoyment, place attachment, and store loyalty with apparel shoppers. Significant store attributes that predicted shopping enjoyment included atmosphere, price, leisure, design, and service. Shopping enjoyment was a significant predictor of both place attachment and store loyalty. In turn, place attachment was found to be a significant predictor of store loyalty. The implications for store retailing are discussed as well as limitations and areas for future research.     

Cognitive and affective constituents of the consumption experience in retail service settings: effects on store loyalty

Based largely on the recently growing experiential marketing stream, this study explores the joint effects of cognitive assessments of and emotional responses to service experiences on store loyalty in a retail service setting. Experience-related cognitions and store-related cognitions based on evaluations of the service experience, as well as the subsequent positive and negative emotional responses on the part of the customers, are modeled and investigated in terms of effects on store loyalty. Empirical data were collected through a survey of 518 consumers in four coffee shops of two major chains. The results suggest that consumer evaluations of the service experience and store environment may influence store loyalty, both directly and indirectly, through both negative and positive emotional arousals. The relative effects of each construct through different mechanisms are the primary research questions investigated in this study. Managerial implications and future research directions are also discussed.     

Determinants of retail bank choice in Nigeria: a focus on gender-based choice decisions

As the Nigerian retail banks customers become more sophisticated, it is now very important that retail banks determine the factors that are important and relevant to the customers’ retail bank choice decisions. By using a survey of retail bank customers, this study evaluates the relative importance attached to retail banks’ choice criteria used by male and female customers in Nigeria. The results show that there are some differences in choice factors used by male and female customers in selecting a retail bank for patronage. The recommendation is that bank managers should take both female and male market segments into consideration when making retail bank strategic planning in order to become competitive. The findings can assist retail bank managers in refining their marketing strategies as a means of overcoming the intense competition that exists in the Nigerian banking system.     

The effects of wait expectations and store atmosphere evaluations on patronage intentions in service-intensive retail stores

Many factors, both obvious and subtle, influence customers’ store patronage intentions. Using videotape technology that enabled us to experimentally manipulate the number of visible store employees, number of customers, and music, we test the relative importance of wait expectations and store atmosphere evaluations on patronage intentions. These constructs are found to be critical antecedents of store patronage intentions in the context of the service-intensive retail store at which the model was tested. We also find support for the direct effects of gender on wait expectations and store atmosphere evaluations. We discuss some implications for retailing research and practice.     

Creation of consumer loyalty and trust in the retailer through store brands: The moderating effect of choice of store brand name

Within the current economic context, store brands play an important role in differentiation strategies based on assortment and positioning in terms of distributor prices. To begin with, this study identifies three determining aspects of retail loyalty and trust: satisfaction with price levels, the perceived image of the assortment and loyalty to the store brands (SB). Secondly, this study proposes a theoretical relational model among the aforementioned aspects. Finally, this study analyzes the moderating role that the strategy of choosing SB name (umbrella brand label vs. brands different from the label brand) plays in the relationship between loyalty to SB and loyalty to and trust in the retailer. By including this moderating variable, we seek to contribute to current academic research and to provide insights into the importance that SB strategy (label vs. own name) has for the effect of loyalty to SB on the relative results of the retail company. Our research results show that making the umbrella SB name the same as the label brand name increases the positive effect of customer loyalty to SB on loyalty to the retailer, but not the effect of trust on this loyalty compared to chains that use SB names different from those of the label. These results have important implications for management.     

Perceptions of ethical work climate and person-organization fit among retail employees in Japan and the US: A cross-cultural scale validation

International retailers can only be successful if they understand similarities and differences between cultures. This study compares retail employees' perceptions of ethical work climate and person-organization fit in the U.S. with those of the same employee type in Japan. The results can help retailers understand employee perceptions of their relationship with the firm. An important aspect of this research involves testing the cross-cultural validity of the ethical work climate (EWC) and person-organization fit (POF) scales. Findings suggest that these scales are valid in both different national contexts and can also be used to compare differences between the cultures. Significant differences were noted in the EWC and POF between retail employees in Japan and the U.S. The relationship between EWC and POF varies significantly for employees in Japan and the U.S.     

Challenges and opportunities of new retail horizons in emerging markets: The case of a rising coffee culture in China

Economic growth and a rising middle class consumer base make emerging markets an attractive prospect for many international businesses. Changing patterns of retail in these countries present opportunities for business expansion that many are keen to capitalize on, but also present challenges for reaching their ambitions. This article examines the growth of the coffee shop industry in China—considering its key dynamics and drivers—in order to address questions about successful retail expansion in emerging markets. We aim to explore how changing consumer cultures have contributed to a rapidly growing industry and what strategies businesses have used to enter the market and maintain growth, as well as considerations for potential retail success in the future.     

Store format choice and relationship quality in apparel retail: A study of young and early-middle aged shoppers in New Delhi region

Shopping format choice has been an interesting and important area of research in the academic literature from long time. However, research in this area is presently at a nascent stage in India. There are a very few studies which focus on store format choice in India which includes the works of Anand and Sinha (2009), Prasad and Aryasri (2008), Sinha and Banerjee (2004) and Tripathi and Sinha (2008). The present study compares three different retail formats (Discount stores, Exclusive stores and Multi-brand outlets) based on the shopper's perception of relationship quality (RQ) of these stores using multivariate techniques. For addressing, the objective of this study a sample of 313 shoppers is used. Results suggest that “conflict due to store” and “combined overall RQ due to the store and its employees” influence the store format choice. The RQ levels among the apparel store format are highly competitive.