From crinkly sheds to fashion parks: the role of financial investment in the transformation of retail parks

The retail park is one of the most ubiquitous and significant forms of off-centre retailing in the UK. Originally designed as low-cost accommodation for 'bulky goods', retail parks now include high-rent 'fashion parks' which are eagerly sought by institutional investors for long-term ownership. This paper explains why retail-park ownership, originating in the early 1980s in one-off schemes by locally based property developers, has become the province of major property companies, financial institutions, and asset managers. Growth in rents and capital values has been fuelled by increasing institutional investment, and by fears of a growing scarcity of high-quality developments because of town-planning restrictions. This pressure is now leading to attempts to realize the full capital value of older developments, through processes of 'active management' by the new breed of retail-park owners. In turn, this is leading to increasingly rapid changes of retail occupiers, involving in some cases the expulsion of the original 'bulky goods' retailers for whom retail parks were created. A parallel with the 'Wheel of Retailing' model of institutional change is suggested.     

Where to refuel: Modeling on-the-way choice of convenience outlet

For many goods consumers do not make a special trip to a store. Especially for a convenience good such as fuel they will buy the product while on-the-way to some final destination. This paper introduces on-the-way choice of retail outlet as a form of convenience shopping. It presents a model of on-the-way choice of retail outlet and applies the model in the context of fuel retailing to explore its implications for segmentation and spatial competition. The model allows analyzing how choice of retail outlet varies not only with spatio-temporal variables (distance, detour, local competition and agglomeration) but also with trip-related characteristics such as time of day and prior awareness of one's purchase need. The model is a latent class random utility choice model. An application to gas station choices observed in a medium-sized Asian city show the model to fit substantially better than existing models. The empirical results indicate consumers may adopt one of two decision strategies. When adopting an immediacy-oriented strategy they behave in accordance with the traditional gravity-based retail models and tend to choose the most spatially convenient outlet. When following a destination-oriented strategy they focus more on maintaining their overall trip efficiency and so will tend to visit outlets located closer to their main destination and are more susceptible to retail agglomeration effects. The paper demonstrates how the model can be used to inform segmentation and local competition analyses that account for variations in these strategies as well as variations in consumer type, origin and time of travel. Simulations of a duopoly setting further demonstrate the implications.     

The Changing Structure of Intercorporate Relations Among Britain's Largest Retail Firms, 1975-1997

Empirical studies of the structure of intercorporate relations among large firms in Britain and elsewhere have revealed extensive networks of interconections through interlocking directorships. Although the significance of such linkages has been much discussed, they are widely held to constitute important communication channels which may play a significant role in firms' strategic decision-making. However, these issues have not been examined previously in the case of Britain's retail sector. This paper explores the links, via shared directors, between Britain's twenty largest retail companies over the last two decades. The retailers' connections with other major financial and industrial concerns are also explored. The results indicate that intercorporate relations in the retail sector have been radically transformed as these firms have become progressively integrated into Britain's wider business network.     

Beyond convenience: the future for independent food and grocery retailers in the UK

The UK's independent food and grocery retail sector's competitive advantage of 'convenience' has been eroded in recent years as major retailers increase opening hours and develop their own convenience trading formats. As a result, large numbers of independent retailers are closing. A UK-wide survey was undertaken to identify other sources of competitive advantages, and the changes needed to stop or reverse the decline in this sector. Exploratory semi-structured interviews led to the development of a questionnaire on six major issues affecting the sector. 'Snowball' sampling, using industry partners, provided 142 respondents. The provision of a 'social shopping experience' emerged as a key competitive advantage that could be developed. Improving vertical and horizontal trading alliances, and the wider use of information technology, provided other options.     

Japan's Growing Outward Direct Investment in East Asia

Japan's outward direct investment (ODI) began to show an obvious expansion since 2005, accompanied by a greater importance in East Asia and in the manufacturing sector. By analyzing the new wave of Japanese ODI, three points are elaborated in this article. First, the recent Japanese ODI did not result in the same industry to be passed from one country to another as elucidated in the flying geese model. Instead, Japan's ODI only promoted the regional divisional of labor in the transport equipment and electrical machinery industries. Second, this study advances the theory of vertical production network by exploring two regional production networks constructed by Japanese ODI, including one between China, South Korea, Taiwan, and Hong Kong and the other between the Association of Southeast Asian Nations (ASEAN). Finally, since Japan's economy has been tightly connected with foreign demand via overseas production, this article argues that any sign of Japan's declining ODI will have serious impact to its domestic economic prosperity. © 2015 Wiley Periodicals, Inc.     

Manufacturers' brand advertising and how it influences manufacturers' and retailers' margins

This article describes the effects of manufacturers' brand advertising on the costs, margins and prices of firms in a real-life, 'dual-stage' world where manufacturers sell to retailers who resell to consumers. Unlike 'single-stage' models, which are frequently used by economists, in which manufacturers appear to sell directly to consumers or to deal with them through an inert distribution system, retailers in a dual-stage world neither buy nor sell as perfect competitors. Although in some industry structures advertising will raise prices to consumers, the welfare effects of advertising are far more benign in a dual-stage world. In intensively advertised categories consumers are more disposed to switch stores within brand than brands within store (just the opposite of relationships in categories where brand franchises are weak) causing there to be an inverse association between margins at the two stages. Thus, while intensive advertising will normally raise factory prices it will drive down retailer margins, often to the point that retail prices are below the levels that would be obtained if the industry were only lightly advertised.     

Charity retailing in the UK: a typology

Recent unprecedented growth in the UK charity retail sector has seen charities becoming increasingly strategic in managing their retail operations. This paper reviews the present state of the charity retail sector through a three-fold typology and uses this typology to critically analyse the range of strategic approaches within the sector. Review and analysis of these strategies suggest that ironically the most profitable charity retailers are not necessarily the most strategic ones. Independent, localised charities which maintain close links within their communities are often more profitable than their more professional national counterparts. The paper closes by exploring the fundamental tension for these retailers, between generating the highest possible profits, and maintaining a charitable and caring image and questioning the future for this distinctive retail sector.     

Thailand: Opportunities and risks in a fast‐changing business environment

Thailand's business environment is changing dramatically in the wake of the worst financial crisis and economic recession in the country's recent history. Some of these changes may be ephemeral, and Thailand will return to old business practices once the crisis eases, but many of the economic and political reforms now being implemented can make trade and investment in Thailand easier, more transparent, and less affected by corruption. Some of the reforms will not deliver the expected results. Others may increase uncertainty that will be counterproductive in the short run. But some of the constitutional changes—the restructuring of family controlled conglomerates, better regulation of the financial sector, demands for stronger corporate governance, and new incentives for private investment—can have profound impacts on the country's business climate and the way American companies do business in Thailand. © 2001 John Wiley & Sons, Inc.     

Technical and non‐technical education and the employability of engineering graduates: an Indian case study

India's substantial growth in recent years has resulted in a significant increase in demand for engineers. Information technology companies, now a major part of the Indian private sector, have been prominent in such recruitment, but the competences they seek in engineering students appear to be different in terms of priorities from those sought by engineering firms. Against this background, and Indian employers' general dissatisfaction with graduates' skills, the present study aims to investigate the importance of technical and non‐technical education, respectively, in the employability of undergraduate engineering students. Employability was determined according to students' success in campus recruitment drives by information technology companies, that is, whether they received an offer of employment. The study used a sample of two cohorts consisting of more than 500 undergraduate engineers in total, drawn from one of the leading engineering colleges in South India. Independent variables consisted of marks scored at the higher education admission stage, grades in engineering at graduation and performance in non‐technical education. The last named comprised verbal reasoning, logical reasoning and soft skills. The dependent variable was whether or not they were offered employment. The results, obtained through correlation and ordinal regression, revealed that the performance of students in non‐technical education was a stronger predictor of employability than was grade obtained in technical education. The findings will be of relevance to engineering colleges because they can be used in the formulation of a strategy to improve the employability of their students. The context is a concern in many countries that those leaving higher education are not properly equipped for the world of work.     

Rates of Adoption by Independent Financial Agencies (IFAs): The New Regulatory Regime

The study of the acceptance of change and attempts to measurethe adoption process are, as this paper demonstrates, subjectiveand wrought with dificulties.' Whether change comes in theform of a changing organisational culture, fashion or a changein the regulatory system, similar problems emerge whenattempting to analyse the diffusion of the new idea, and theacceptance of the innovation by the potential adopteed. Anattempt will be made to analyse the change adoption process inthe regulation of retail personal jinancial services and itsmeasurement over a period of time utilising statisticaltechniques and a model adopted from the study of consumernew-product marketing. Although this process research isdefined as 'a type of data gathering and analysis that seeks todetermine the time-ordered sequence of a set of events' accountwill also be taken of the contextual framework.' The analysis will try to ascertain whether the attitude of Independent FinancialAdvisers to the change in regulation of retail personal financialservices is a reaction of a temporary nature or whether itconstitutes a more permanent reaction which will break thesequential nature of the adoption process.     

E-commerce and the retail process: a review

Views abound on the impact of the Internet and e-commerce on traditional forms of retailing. Scenarios range from on the one hand, the almost total devastation of existing physical retailing to, on the other, limited if any impact upon “real” retailing.Despite excessive hype, spectacular failures and the myriad of conflicting views and crystal-ball gazing, e-commerce processes and procedures provide the potential for a fundamental reassessment of how retailing operates and how retailers behave. Without doubt, the existing ways of operating and the associated cost structures within retailing will be reassessed under the onslaught of new technology and new retail structures.This paper reviews the published evidence on the impact of e-commerce on the retail process. It reviews the situation rather than introducing new evidence. The focus is on the process as it supports B2C activity and how retail processes and procedures could be affected by e-commerce, rather than a pre-occupation with sales impact through traditional merchandise and product sector typologies.Three conclusions are drawn. First, the largest retailers are now pursuing Internet-enabled advantages and cost reductions in operations, which could translate to an enhanced competitive position in process, structure and relationship terms. Secondly, consumer reactions to the new real and virtual offers will be fundamental to their success and failure, but as yet consumer reactions are not fully understood. Thirdly, existing retail floorspace will need enhancement in quality and presentation if it is to continue to provide retail functions.     

Output Movements in East Asia: Is There a Regional Factor?

Using Lumsdaine and Prasad's (2003 ) methodology to construct a measure of the common component of industrial output fluctuations with time‐varying weights, this study finds that there is a significant regional factor that explains the movement in industrial production output across countries in East Asia (ASEAN 5 + 3). The cumulated common component for East Asia has very distinct peaks and troughs, with turning points occurring about every three years. Shocks in 2000–2001, coinciding with the bursting of the IT bubble, appear to be very important as there is a very large decline in the common component of industrial production output, larger than that experienced during the 1997 Asian Financial Crisis. Similar to McKinnon and Schnabl's (2003 ) findings, the Japanese economy is important for the region as its industrial production output cycle has the largest weight in the construction of the cumulated common component for the region and appears to be the most similar to it. Nevertheless, China's asymmetry with the cumulated component for the region appears to have been beneficial for the region, especially in the most recent period.     

Supermarkets in China: the case of Shanghai

Supermarkets have established a visible presence in Shanghai with some 1,000 stores and an estimated 5 per cent of market share. Local chains dominate the sector but well-known international retailers are very active. Studies indicate that a large proportion of consumers regularly shop in supermarkets but they use them 'selectively', mostly for packaged and processed foods, and continue to purchase fresh food in traditional outlets. The author uses a variety of data types and a number of research methods to analyse supermarkets' penetration into Shanghai. A background discussion of the food retail system in Shanghai highlights the traditional formats, the local and foreign supermarket chains, and the independent supermarkets. The data from a consumer shopping behaviour study is then used to assess supermarkets' penetration. Supermarkets' fast penetration into Shanghai is surprising given the findings of earlier studies, which identified the existence of serious limitations on the format's penetration into less developed countries (LDCs). Consequently, the focus in the second part of the paper is on explaining the reasons for the success of supermarkets. The impact of the factors identified in the earlier studies as constraining supermarkets' advance were evaluated and it was found that in Shanghai three of these factors (consumers, traditional retailers and government) did not cause serious problems for supermarkets. Only the supply-side conditions negatively affected their operations. The Shanghai example highlights the need to update our thinking regarding the LDCs' food retail modernization process in a number of directions. First local supermarket chains, not foreign ones, drive the process. Second, supply-side factors, not the demand-side ones that were emphasized in earlier studies, pose the major difficulties. Third, this analysis affirms the importance of the 'selective' adoption phenomenon where LDC consumers who regularly shop in supermarkets continue to purchase fresh food in traditional outlets. The implications of this analysis for food retail modernization theory and for practice are discussed and the prospects for further development of the supermarket sector in Shanghai are assessed.     

Why Private Label Grocery Brands Have Not Succeeded in Asia

Abstract

Lower disposable income among Asian grocery shoppers, heavily discounted private label grocery brands, relative to national brands, and a favorable retail distribution structure would seem to predispose the former to success. But this has not been the case. To learn why private label grocery brands have not succeeded in Asia, two identical shopper surveys were conducted in Wichita, Kansas (United States) and Prakanong-Bangna, Bangkok (Thailand) to examine possible factors relating to retail grocery shopping differences. The authors found that poor market knowledge, and the tendency of Thai consumers to infer product quality by using extrinsic cues such as high price were salient. Additionally, Thai choices were influenced more by social factors than Americans, making them less prone to bargain hunting. The paper concludes with the discussion of managerial implications and offers recommendations to retail chain owners operating in the region.     

Lookalikes and customer confusion in the grocery sector: an exploratory survey

This paper discusses the issue of copy-cat branding, an issue that has dominated the marketing and retail trade press recently. Brand owners have claimed that lookalike own-label products confuse consumers. Retailers, mean-while have claimed that similarities in packaging design are essential to enable consumers to recognize own-label products. There is, however, relatively little academic research on the issue of lookalikes and consumer confusion.

This paper reports the results of an exploratory survey which show that a considerable number of consumers are confused by the packaging of own-label products. It is also shown that consumer confusion varies by store, product and frequency of shopping. Safeway shoppers were found to be more confused by own-label packaging than shoppers who used other retail outlets. Significantly, shoppers at Sainsbury's - the store that has been criticized most heavily over the packaging of its own-label products - were found to be considerably less confused than the 'average consumer'. The purchasers of Coca-Cola, Head & Shoulders and Nescafe Gold Blend were found to be most confused by own-label packaging.     

The International Activities of Japanese Retailers

Despite the upsurge of academic and commercial interest in the changes taking place in the retail sector within Japan, little has been published on the international activities of Japanese retailers. This paper illustrates the range and scale of activities.which have been undertaken by such companies. While Europe and America were favourite destinations up until the mid-1980s, most Japanese retailers have now refocused their expansion plans on Asia as the level of consumers' disposable income has risen and trade barriers have been lowered. At the same time, the early entrants into international markets, the development stores, have been joined by companies operating supermarkets, convenience stores, clothing stores, electrical outlets and so on. The paper considers the nature of these changes and the factors which have driven them.     

Consumer Innovativeness Among Street Vendors in Mexico City

Abstract

This study relates innovative consumer behavior to informal economic activity within the urban lower middle class of one of the world's major emerging markets, with focus on product innovations in the areas of retail and consumer goods and services. of prime interest are the innovation adoption habits of street vendors, a group hypothesized to possess greater innovative tendency than those of similar social background employed as formal sector wage earners. Results indicate that street vendors report higher income and lower levels of education than their formal sector neighbors and these two groups show distinct product acquisition/patronage patterns, as well. However, the street vendors do not always demonstrate more innovative behavior, as adoption appears product specific.     

Barriers and stimuli to the use of information technology in retailing

The retail marketing environment is continuously changing. Changes in retail format, retailing processes and the competitive environment continue to create problems for retail management. This article examines the barriers and stimuli to the adoption of innovation in infonnation technology. Our objective is to demonstrate how managers might anticipate the problems associated with managing significant change and develop appropriate strategies to deal with such problems. Previous research has indicated that it is important to explore the views of a range of managers in the organization. Much of the previous research has relied on a single respondent from many organizations to provide an accurate picture. This research does not follow that tradition. It uses the views of more than one hundred managers within one organization. The research explores the relative attractiveness of the innovation to individual managers, the organization's receptivity to change and the presence or absence of a 'product' champion. It ends with recommendations on ways of improving the rate of acceptance of such technologies.     

Improving the participation of smallholder mango farmers in modern retail channels in Indonesia

Demand for fresh fruits and vegetables in Indonesia has been continuously growing as the result of increasing incomes, high growth of the urban population, and modern retail development. The growth of modern retail chains in Indonesia in the last few decades has intrigued some development experts and practitioners because it had been expected to provide greater opportunities for linking small farmers to high value globalized market chains. The modern private sector would, it was hoped, incorporate small producers with the goal of both securing supply and contributing to poverty reduction. However, in terms of mangoes, previous studies have indicated that only a very small proportion of local production is marketed to modern retail chains and/or exported. The main objective of this study is to identify the factors affecting farmers' participation in modernizing retail channels. The study randomly selected 636 mango farmers from the two main mango production zones in Indonesia, West Java and East Java provinces. The study shows that an expansion of the modernized retail segment has not always benefitted local producers, especially smallholder farmers. It is demonstrated that smallholder farmer participation could be higher when the level of commercialization in the market is high and/or retail procurement was already more modernized. Factors that increase farmer capacity to participate in the modern retail chain are irrigation, farm tools, and infrastructure. To increase smallholder farmer participation, the study suggests a policy of encouraging enforcement of quality standards at wholesale markets, technical assistance to farmers relating to value-adding postharvest activities, and improvements in rural infrastructure.