An empirical examination of performance in the clothing retailing industry: A case study

This article estimates the efficiency of the 40 retail stores of a prestigious clothing company that operates in the Portuguese fast-fashion retailing market. The study compares the performance among the stores and provides insights into ways of improving performance in the retail clothing industry. A two-stage approach is used in this article. In a first stage, Data Envelopment Analysis (DEA) techniques are used to evaluate the performance of each store and to rank the stores. The input-oriented model was used to assess the summer and winter collections between 2010 and 2013. The results show that the total technical efficiency of the company decreases over time. Except for the year 2013, over 90% of the stores show increasing returns to scale during 88% of the period analyzed. The company faces a clear problem of productivity in its retailing operations. This deficiency seems to be intrinsic to the firm as it involves more than 60% of the stores. In a second stage, a quantile regression technique was used. This showed primarily that for the lowest quantiles of the efficiency score conditional distribution the coefficients on experience are very low, even close to zero, which suggests that the efforts taken by the stores in terms of experience are barely recognized by consumers in this fast-fashion retailing chain.     

Boundaries for the Retail Geographical Market and Factors Influencing Shoppers' Mobility

A growing number of mergers and their potentially negative impacts on consumer welfare in the retailing sector have prompted discussion on how to define the boundaries of the relevant market. This article explores the boundaries of the geographic market of daily consumer goods through an examination of factors that influence shoppers' mobility in Croatia. The study takes into consideration the purpose of the trip and differentiates between major and fill‐in shopping trips, and demonstrates that different factors impact the shopper mobility for each of the two shopping trips. It provides support for the practice of defining market boundaries empirically on the basis of region and store format specificities, taking into account prevalent shopping occasion, economic situation of the residents, size of the residential area, and geographical placement of the stores among other things. The study shows that the boundaries of the retail market may be more narrow than expected.     

Foreign investment in the retail sector of the People's Republic of China

For many years, manufacturing was the hottest sector in the Chinese market. But when free market retailing became legal again in 1978, China's retail sector took off. Joint ventures between large department stores, such as Yaohan Department Store of Japan and the Chinese state-run Shanghai No. 1 Department Store, are growing to take advantage of China's potential 1 billion new customers. Davies paints a clear picture of the industry and candidly discusses the problems surrounding this new market: over-estimates of consumer demand, retail price inflation, currency flow problems, and increased smuggling and counterfeiting. Yet he is optimistic that retailing can only grow when Hong Kong becomes part of China in 1997.     

Prices and promotions in U.S. retail markets

We provide generalizable results on the price and promotion tactics employed in the U.S. retail grocery industry. First, we document a large degree of price dispersion for UPCs and brands across stores, both nationally and at the local market level. Base price differences across stores and price promotions contribute to the overall price variance, and we show how to decompose the price variance into base price and promotion components. Second, we document that a large percentage of the variation in prices and promotion tactics across stores can be explained by retail chain and especially market/chain factors, whereas market factors explain only smaller percentage of the variation. Third, we show that the chain-level price and promotions similarity can be explained by similarity in demand. In particular, a large percentage of the variance in price elasticities and promotion effects can be explained by retail chain and especially market/retail chain factors. Further, price elasticities and promotion effects across stores of the same chain are hard to distinguish from the chain-market-level mean, and cross-price elasticities are typically imprecisely estimated. These findings suggest that retail managers may plausibly consider price discrimination across stores to be infeasible.

     

Retailing in the Transition Economies of Poland and Romania: A Comparative Analysis

This research compares and contrasts the current state of development in the retailing industry in the transition economies of Poland and Romania. Two issues examined in this research are (a) the process of market reforms and resulting developments in store-based and non-store retailing, including the competition among large multinational retail chains and small local retail stores, and (b) the structure of the retail industry in terms of market share of 17 different categories of retailers within their respective sectors, namely, grocery retailers, specialty retailers, and non-store retailers, and overall growth registered by these retailers in the last 5 years (2004–2009). Managerial implications of the findings in terms of the opportunities and challenges in different categories of retailing business in the two countries are discussed, and directions for future research are identified.     

How well do ‘off-price’ retailers satisfy consumers?

Off-price retailing is a new form of discount or low-price retailing that has become prominent in the U. S. during the past decade. In an attempt to satisfy today's quality-and price-conscious consumers, off-price retailers have utilized a marketing strategy of ‘brand and designer names for less’. Based on research assessing consumers' attitudes towards apparel offerings of off-price versus conventional retailers, we suggest that off-price retailers are not yet successful at satisfying consumers' needs and wants in their special niche of the market. We recommend several revised marketing strategies to enable off-price retailers to satisfy consumers better, and thereby maintain their niche in the ever competitive consumer market. We conclude by observing that it is important that consumer-orientated professionals take an advocacy role in encouraging retail institutions such as off-price stores to revise their marketing strategies to serve consumer interests better.     

Retail-center viability and urban form: a micro analysis

Location is commonly axiomatically stated as the most important real estate feature. However, little attention is given to the urban system that reveals how location is configured, and how that configuration sustains the viability of site-specific retailing activity in the metropolitan region. In this paper, we use block-level, GIS-aided spatial data that reveal the physical qualities of the retail center’s built environment as well as employment and business activity. Thereby, we examine a hypothesis that retailing viability is linked to urban form and set out to determine a statistical relationship. Retail sales data indicate the viability of businesses in two matched shopping centers, urban and suburban, each anchored by an identical big-box retailer downsized to a neighborhood supermarket, with pedestrian-friendly orientation and proximity to housing. The paper concludes with regression estimates of the urban form determinants of business viability by various distances from the retail center.     

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.     

Large format retailing in the US: a consumer experience perspective

Proponents of relationship marketing seek to develop and maintain long-term ties to their customers in the hope of having a loyal customer base. In this paper we examined large format retailing from the perspective of consumers’ experiences in these stores. Focus group interviews were conducted in two major US metropolitan areas and one medium size market. After analyzing the focus group content, several themes emerged related to patronage of large format retailers. These included the accuracy of prices when products were scanned and loyalty to store personnel based on familiarity. Large format supercenters were especially chided for their bigness and potential negative impact on smaller retailers. Attending to the details of the food retail business (accurate pricing, product availability, continuity of personnel) are ways in which consumers’ experiences in retail stores might be improved. Numerous choices and a diverse array of retail formats are available to consumers in the US market. Managerial implications are discussed in the light of a changing retail landscape.     

The importance of retail brand equity and store accessibility for store loyalty in local competition

Previous research shows that the success of a retailer depends on strong retail brands and attractive, easily accessible store locations. However, little is known about the relative importance of retail brand equity and store accessibility for store loyalty in different local competitive contexts. To provide insight into this issue, we conduct on a cross-sectional study of 4151 interviews and objective data on 30 stores of a focal retailer and its local competitors. We find that store loyalty benefits more from a strong brand than from a conveniently accessible location and that location can benefit from a strong brand. We also find that competitor’s brand equity has an especially negative influence on store loyalty towards a focal retailer and that the strength of the effects of brand equity and location accessibility on store loyalty depends on the local competitive context.     

Numeric or weighted distribution? The effect of different channel performance metrics on market share

Abstract

Previous studies have found a convex relation between weighted measures of distribution and market share for consumer products in developed economies, while companies in emerging markets often use a non-weighted (numeric) distribution measure to manage their channel strategy. In contrast to the markets with high retail concentration, the numeric distribution could be best suited to a more fragmented retail market in which the percentage of physical distribution is important. We investigate the effects of expanding numeric versus expanding weighted distribution by studying stores in channels and regions characterized by structural differences in an emerging market. Our data come from retail audits in Brazil and include 91 soft drink manufacturers, 195 brands and 1,110 stock-keeping units. Our study highlights the importance of numeric distribution as a performance measure in this market. Additionally, we show that the effects of numeric and weighted distribution on market share vary by region and channel format.     

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.     

外商投资我国零售业的动向与思考

未来几年,随着外资进入我国零售业,在企业的设立形式,数量,地域,股权比例等方面的限制陆续取消,我国零售业将会形成外商独资、中外合资等各种经济成份相互竞争的局面。认真解读外商投资零售企业的现状,分析其发展动向,这对保护和发展民族商业、规范我国零售市场具有重要的意义。     

An examination of reference prices at factory outlet stores

The purposes of this research study were to (1) examine the use of reference prices by one segment of retailing – factory outlet stores and (2) explore related public policy considerations. The researchers found that there was a significant difference between advertised reference prices at factory outlet stores and the regular retail price found in department or specialty stores in the same market. Advertised reference prices in outlets were significantly higher – a 6.2 percent difference. For only two of the product categories studied were differences not significant – housewares and children's apparel. Since these comparative reference prices are not in line with the regular prices at traditional stores, there is a potential for deceptive price claims.     

The modernization of fresh food retailing in China: The role of consumers

Since 2002, the Chinese government has initiated the “Wet Market Transforming into Food Supermarket (WMTFS)” program that aims to transform the traditional fresh food retailing system into a more efficient system that adopts a supermarket operation mode. However, after years of effort, the process of implementing the WMTFS program has been painfully slow. In addition to several supply side factors, this paper focuses on the consumer demand side using survey data in three large Chinese cities to identify the factors affecting consumers' decisions to buy fresh food from traditional vs modern retail formats. It further explores regional differences in consumers' shopping behavior. We find that freshness, accessibility, and whether buyers can bargain are influencing factors and the effects of socioeconomic factors such as income and storage facility are very limited. In addition, we find regional difference exists in consumers' retail format preferences. We suggested that managers of fresh food supermarket should enhance product freshness and safety in the future. Meanwhile, since traditional retail formats are still preferred by many consumers, the policy-makers should give a further thinking on the specific way of transformation.     

Consumer satisfaction in retail stores: theory and implications

The substitution of small retail stores by the large stores has been a topic of debate among academics, practitioners, retailers and general public, especially in the context of foreign firms entering emerging markets such as China and India. The purpose of this research is to find out the determinants of consumer satisfaction in small and large retail stores in an emerging market, with a sample from India. Data were collected using a 39‐item structured questionnaire developed by the authors. The sample consists of 225 consumers who shop at retail outlets (Convenience sample of 125 consumers from small and 100 consumers from large stores respectively). Exploratory factor analysis grouped the 39 variables into 14 factors. Further, regression analysis revealed that six of the factors (Social desirability, staff friendliness, shopping economy, shopping ambience, family shopping and deal proneness) were major predictors of consumer satisfaction as they were found to be significant at 5% level. The significance of factors such as social desirability and staff friendliness imply that many consumers prefer those typical features of small stores, which in turn results in the likely coexistence of small retail formats in spite of the entry and proliferation of large retail stores from different countries. We posit three theoretical propositions to stimulate further research in this area.     

Perceived customer showrooming behavior and the effect on retail salesperson self-efficacy and performance

The increasing product commoditization and price transparency afforded by online retail channels have left many brick and mortar stores bearing the costs associated with being used as a physical showroom without reaping the rewards of the final sale. As customers continue to take advantage of retail stores to gather information and turn to competing channels for purchasing, the role of the retail salesperson has shifted and retailers have been left without a clear understanding of how to manage this change in the retailing landscape. In this research, we first define “showrooming” – and investigate individual (i.e., salesperson)-level experiential consequences of perceived showrooming. We find negative relationships between perceived showrooming and salesperson self-efficacy and salesperson performance, which are positively moderated by salesperson coping strategies and cross-selling strategies. Our findings suggest that the negative effects of showrooming can be combated though specific salesperson behaviors and strategies. Further, exploratory findings at the store level reaffirm a negative relationship between perceived showrooming behaviors and performance. Finally, we discuss the theoretical and practical implications of our findings and offer specific managerial actions to address showrooming.     

Desire for Visual Aesthetics (DVA) in the Store Environment: Concept and Measurement

The article describes the development, purification, and validation of a reliable self-report scale designed to measure the Desire for Visual Aesthetics (DVA) in the store environment. There is limited literature on the subject and a measurement scale has eluded both academicians and practitioners that could help measure the need for aesthetics in the retailing environment and help marketers decide on the level and type of aesthetics for the different segments in the target market/s and also the different type of retail stores. We used 3 focus groups, 8 individual interviews, and 891 surveys to develop, purify, and validate the 9-item Likert type scale. We also provide evidence for dimensionality, reliability, and validity. The scale could be used by academicians and practitioners alike, and could replace single items to measure the concept.     

Japanese Supermarket Chains and Labour Costs- Part 1:

Japan is often alleged to have an outdated and inefficient retail system. Detailed studies are needed to underpin these allegations. In this paper we do this for the retail sector of supermarkets. We study 18 Japanese supermarket chain store corporations. Characteristics of Japanese supermarkets are given in an historic overview. A labour cost relationship is estimated with data of 918 establishments. This relationship has already been established, tested and confirmed in many studies on European retailing. In part 1, we show that Japanese chain store corporations diversify in assortment composition as well as in service level. In part 2, labour costs of Japanese supermarkets are studies in more detail. We find statistical support for higher labour costs by more use of part-time employees, higher service level and village based stores. Furthermore, we compare labour costs of Japanese supermarkets with labour costs of French variety stores, supermarkets and hypermarkets. We find no differences in labour costs between Japan and France.     

Retail formations: tracing the fluid forms of an online retailer

ABSTRACT

Change has often been said to characterise retailing, and research on retail change is extensive. However, though much of that research has focused on retail formats, it has not sufficiently addressed the fluid nature of retailing and how its formats emerge. This paper offers a more dynamic conceptualisation of retail format change by introducing the concept of retail formation. Taking a constructivist market studies approach and drawing upon an ethnographic study of a Swedish consumer electronics retailer, the paper shows how retail formations are continually being made in a dynamic process that can be initiated by various actors, does not necessarily follow a logical order, and commonly produces unexpected results. The concept of retail formation allows us to better understand the increasing fluidity of retailing enabling us to trace complex market processes, examine multiple actors simultaneously, and taking into account the socio-historical and socio-cultural dynamics involved in shaping retail markets.