The benefits and pitfalls of contemporary pop-up shops

As e-commerce growth continues to surpass that of brick-and-mortar retail, temporary retail spaces, also known as pop-up shops, are becoming an important promotional strategy, especially for online retailers and service providers. Success in today’s retail environment means being able to create and maintain brand communities, to generate instant and measurable hype, and to deliver personalized consumer experiences—all of which can be readily achieved through a strategically placed physical business presence. In this study, a survey of retailing organizations worldwide reveals that among those that had implemented at least one pop-up shop, more than 80% considered it a success. The results also show that the primary reasons for activating pop-up shops were to create connections with current and potential customers, to increase brand awareness, to introduce a new product or brand to the marketplace, and to stage a new product or brand. While the respondents deemed revenue generated at pop-up shops important, they considered improving market visibility (e.g., through social media, website traffic, or media coverage) a more significant objective. Given the economic potential of pop-up shops, this research provides retailing organizations with guiding principles for developing and operating successful pop-up shops in the current marketplace.     

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.     

Has the productivity of retail food stores really declined?

Despite the fact that other factors of production have been substituted for labor, and that scanner technology has come into widespread use, the BLS index of labor productivity for retail food stores has been declining for sometime. The purpose of this paper is to study this puzzling decline in measured productivity. The results indicate that the decline in the BLS index is due to changes in services offered by retail food stores that are not incorporated into the index, and that productivity increased if these services are accounted for.     

Evaluation of technical efficiency among entrant and incumbent firms in the Spanish retailing sector: The effects of deregulation from a regional perspective

This study analyzes the efficiency of entrant and incumbent firms in the 1995–2003 period, after a significant shift in the institutional environment of the retail sector occurred with the deregulation of opening hours carried out imposed by decree law 6/2000. It also analyzes the evolution of efficiency in relation to the entrance cohorts and to their geographical localization. The results obtained show that the effects of opening hours by decree law 2000 have perhaps been negative on the level of efficiency of the new firms. The increasing of the inefficiency of the firms is observed through the cohorts with more intensity starting from the year 2000, although in general the tendency of the efficiency is negative at global level. There have not been statistically significant differences between the incoming firms and the incumbent ones for both specialized and non-specialized sectors. Finally, notable intersectoral and intrasectoral differences of efficiency exist among Autonomous Communities (i.e. regions).     

Spatial competition with endogenous location choices: An application to discount retailing

This paper examines the importance of geographical differentiation in store location decisions of firms in the retail discount industry. Using a novel data set that includes the store locations and accompanying market conditions for all stores belonging to the Wal-Mart, Kmart, and Target chains, we study the factors that influence the entry and location decisions of these firms. The model involves an incomplete information game between the three players where each firm has private information about its own profitability. A key feature of our modeling approach is that it permits asymmetries across firms in the impact of exogenous market characteristics and competitive interaction effects. Variations in the exogenous firm specific characteristics, such as the distances from the market to firms’ headquarters and the nearest distribution centers, serve as exclusion restrictions and provide the source for model identification. Parameter estimates of the payoff functions are used to predict the equilibrium market structure under a variety of market conditions that provide insights into the competitive landscape of the industry. Results show that all firms exert a strong negative impact on competitors when they are in close proximity, but the effect decreases with distance to rivals suggesting strong returns to spatial differentiation in this industry. Target stores fare well under competition except when these competitors are in close proximity. Wal-Mart’s supercenter format is found to be the most formidable player as it substantially impacts competitors even at a large distance. We also find significant asymmetries across players in their response to market conditions and competition interactions.

The impact of a gasoline crisis on retail sales

The gasoline crises of the 1970s demonstrated the need for including gasoline prices and gasoline shortages in models explaining retail sales. In this article, a model is constructed that incorporates the aforementioned variables, other variables, and a lagged sales figure as independent variable. The results indicate a high degree of explanatory power in predicting retail sales for a specialty store chain with a preponderance of their stores in large regional malls that sell a product which lends itself to unplanned purchase behaviour.     

Factors affecting donations in U.S. retail stores: A conceptual framework

The purpose of this study is to identify the factors that influence consumer donations in U.S. retail stores. The study provides a conceptual framework of factors derived from the cause-related marketing, consumer behavior and psychology literatures. These factors are categorized as consumer-related factors, retailer-related factors and context-related factors. Consumer-related factors include consumer-retailer identification, consumer-cause affinity, impure altruism, civic engagement and post-purchase cognitive dissonance. Retailer-related factors consist of retailer-cause fit, retailer's commitment to the cause, retailer image as being altruistic, and retailer credibility. Context-related factors include time pressure, social pressure, shopping amount, and perceived savings during the shopping trip. This conceptual framework serves as a foundation for future empirical studies.     

A COOL Effect: The Direct and Indirect Impact of Country-of-Origin Disclosures on Purchase Intentions for Retail Food Products

Retailers recently became required to provide specific country-of-origin information for muscle cuts of beef, chicken, pork, lamb, and goat. Drawing from the consumer inference and activation theory literatures, hypotheses are offered regarding how consumers use country-of-origin labeling (COOL) to draw inferences related to specific product attributes and how these inferences, in turn, lead to differences in mediation effects for purchase intentions. Results from a pilot study and two experiments reveal that consumers are more likely to purchase meat when it is identified as a U.S. product. Furthermore, the relative strength of the mediating effects of perceived food safety, taste, and freshness differs as expected. The authors show how the direct and indirect effects of the country-of-origin disclosure are attenuated by the presentation of objective information about the meat processing systems of competing countries. Given the recently mandated COOL disclosures, results have important implications for food retailers, members of the supply chain, and consumers.     

How does the biophilic design of building projects impact consumers’ responses? – Case of retail stores

The study that biophilic store design (BSD) has a much higher perceived visual quality, increases the desire to patronize, increases willingness to spend retail stores shopping times is on the increase in the literature. The study of greenery in building environments has been vastly studied, however, the inclusion of greenery study in retail stores and its potentials to provide a strategic business advantage have been scarcely explored. This research work draws from the Attention Restoration Theory to unearth the impact of biophilic design attributes on consumer responses. Hence, this study asked: “How do attributes of biophilic design in retail stores impact consumers’ responses in retail stores”. A quantitative research method with an online questionnaire was employed; 177 participants were recruited. Multiple regression analysis was computed via SPSS and demonstrated that the four attributes (predictors) of biophilic design positively impact consumer responses. Findings for three attributes (biomorphic forms and patterns, material connection with nature, and complexity and order) were significant, while a visual connection with nature was not significant. These findings suggest that a biophilic design positively impact consumer responses; however, simply presenting or using natural elements is not sufficient to produce positive consumers' responses. Additionally, the t-test revealed that intent to purchase was significantly higher for a store low in biophilic attributes than the study hypotheses. The study's limitations and implications are discussed herein. This work contributes to the biophilic design paradigm of building projects by empirically demonstrating the restorative potential of lifestyle centers.     

Predictors and effects of retail brand equity – A cross-sectoral analysis

Although retailers increasingly seek to position themselves as strong, attractive, and unique brands, little is known about differences in retail branding among different retail sectors. This study analyzes the importance of perceived retail attributes for consumer-based retail brand equity (RBE), particularly the varying roles of these attributes in important retail sectors, and the effects of RBE on intentional loyalty. The authors examine empirical data on 2112 consumer evaluations of retail firms in the grocery, fashion, electronics, and DIY sectors and apply multi-group structural equation modeling. The results indicate that the importance of retail attributes for RBE varies among the different sectors, but a strong and stable link between RBE and consumers' intentional loyalty is evident across retail sectors. The sector-specific and cross-sectoral observations in this study provide managers with specific knowledge on the main levers of RBE in different retail contexts.     

The Effects of Voluntary Versus Mandatory Menu Calorie Labeling On Consumers’ Retailer-Related Responses

Restaurants with 20 or more locations will soon be required to disclose calorie information on menus and menu boards. Retailers not included in this mandate can choose to voluntarily provide calorie information. To better understand the implications of this major policy change for food retailers, this research examines how consumers’ retailer-related responses are affected by menu calorie labeling. A framework based on the attribution theory and the health halo literatures is developed, and three primary studies, including a field experiment, are used to test the proposed direct, moderating, and mediating effects derived from this conceptualization. Findings across the studies show that menu calorie labeling has a positive direct effect on perceptions of the restaurant’s concern for customers’ well-being and positive indirect effects on attitudes toward the restaurant and patronage intentions. However, these direct and indirect effects are attenuated when the restaurant is perceived to be more (vs. less) healthful and when menu calorie labeling is mandatory (vs. voluntary). The implications of these findings for retail and restaurant management are discussed.