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Article
Publication date: 22 September 2021

Danny Claro, Valter Afonso Vieira, Raj Agnihotri and Rafael Serer

As manufacturers and retailers aim to increase return on marketing investments, value- vs experience-related trade promotions gain attention. These two trade promotions become…

Abstract

Purpose

As manufacturers and retailers aim to increase return on marketing investments, value- vs experience-related trade promotions gain attention. These two trade promotions become complicated in the presence of different retail format strategies (generalist vs specialist) and channel structures (direct to retailer vs distributors). Building on trade promotion literature, this study aims to show the main effect of value-related and experience-related trade promotions on retailers’ sales and the moderating role of different retail strategies and channel structures.

Design/methodology/approach

The authors use unique panel data from 8 personal care brands with 1,920 observations to test the hypotheses. The authors investigate how consumer goods manufacturer sells products using different channels structures and retail strategies. Estimated panel regressions provide the empirical evidence and robustness analyzes provide extra confidence to the findings.

Findings

Results reveal higher retail sales when the manufacturer invests in value-related trade promotions rather than experience-related trade promotions. The results also demonstrate how the manufacturer successfully invests in trade promotion by adequately accounting for channel structure and retail strategy. While temporary price reduction’s positive effect on retail sales is enhanced in generalist retailers (e.g. supermarket stores), shelf display’s positive impact is enhanced in specialist retailers (drug stores).

Research limitations/implications

The authors used unique panel data accounting for 15 months, limiting the findings. The results supported the investment allocation decisions in each period. However, future research may evaluate the effectiveness over a longer period and thoroughly address each investment’s seasonal effects.

Practical implications

The authors unveil how retailers achieve higher sales with value-related trade promotions when compared to experience-related trade promotions. The authors also shed light on the way manufacturers design their relationships with generalist and specialist retailers by working in direct and indirect channels. Trade promotions yield better results when the direct channel structure couples with a retailer’s generalist strategy.

Originality/value

The empirical findings help manufacturers achieve success in trade promotions by developing an equitable evaluation to contrast value- and experience-related promotions accounting for generalist and specialist retail strategies and direct and indirect channels.

Details

European Journal of Marketing, vol. 55 no. 12
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 28 March 2008

Michael Etgar and Dalia Rachman‐Moore

The purpose of this paper is to examine the effects of international expansion on the sales volumes of large‐scale retailers.

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Abstract

Purpose

The purpose of this paper is to examine the effects of international expansion on the sales volumes of large‐scale retailers.

Design/methodology/approach

Sales data of 200 largest retailers from around the world reported in the 2004 Deloitte “Global Retail Power” survey were analyzed with regression analyses.

Findings

It was found that: even though internationalization makes a positive contribution to retailers' sales volumes its impact is small; this effect is not impacted by the moderating factor of the degree of retailer specialization along product lines; while another moderating factor, namely the identity of the retailer's country of origin, does make a difference.

Research limitations/implications

The research methodology and the nature of the data precluded the use of more “soft” measures such as measures of managerial cognitions, perceptions and attitudes to analyze their impact on the effectiveness of internationalization for retailers. The research used cross‐sectional data and further research should compare results in additional time points to capture the possible dynamic changes in this industry.

Practical implications

Retailers seeking to expand their sales volumes should not rely too much on internationalization but consider also other strategic options. They should therefore analyze carefully whether large investments in overseas operations are justified. This is particularly relevant for US retailers.

Originality/value

This paper focuses on the issue of internationalization as a viable retail strategy to achieve larger sales volumes. The study reaches its conclusions on the basis of an analysis of data from a large population of diverse, domestic‐only and international retailers from around the world from different sectors and countries of origin, who – the international retailers – operate in different countries.

Details

International Journal of Retail & Distribution Management, vol. 36 no. 4
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 9 June 2022

Nobukazu Azuma, Narimasa Yokoyama and Woonho Kim

Identifying the patterns of retail institutional change has piqued the interest of retail academics for nearly a century. The Big Middle hypothesis is one of the most recent and…

Abstract

Purpose

Identifying the patterns of retail institutional change has piqued the interest of retail academics for nearly a century. The Big Middle hypothesis is one of the most recent and hybridized versions of similar theories. According to it, retailers seeking a dominant position in retailing can migrate into the Big Middle, the largest market segment, by specializing in a large market with a broad product assortment or by focusing on a specific product category and simultaneously catering for multiple segments at the same time. This study provides empirical evidence for the latter proposition by employing fuzzy-set qualitative comparative analysis (fsQCA) on the case of UNIQLO, a Japanese clothing specialist retailing giant.

Design/methodology/approach

The authors devised a survey to assess (1) consumers' perceptions of UNIQLO's store attributes and (2) their perceived distance between the UNIQLO and potential competitors. The authors used fsQCA procedures to identify multiple confluences of causal conditions that led to a high level of consumer patronage for UNIQLO from various market segments.

Findings

The findings show that UNIQLO's dominance in the Big Middle stems not only from capturing a sizable homogeneous market but from aggregating multiple heterogeneous market segments with disparities of various types. This finding explains how a specialty store retailer achieves its Big Middle position.

Research limitations/implications

The findings gleaned from fsQCA are not statistically generalisable. It, therefore, is essential to ensure whether similar phenomena are observed under different spatiotemporal settings. Concerning the scope of the research, this study's finding is pertinent to only one part of the Big Middle hypothesis. Future studies are required to cover other dimensions of the Big Middle, including the generalist retailer's cases of the Big Middle.

Practical implications

The results of this study may present a valuable tool to deepen retailers' understandings on; (1) the multiple causal recipes of customer patronages to their retail offerings, (2) who the pure fans of their stores are, (3) who their principal rivals are in the mind space of the consumers, and (4) their overall market position upon aiming to realise the Big Middle. It will give retail managers an insight into how to design, implement, and churn an efficient and effective RBM.

Originality/value

The study's originality is in empirically scrutinizing and elaborating a part of the mechanism of retail change heralded by the Big Middle hypothesis.

Details

International Journal of Retail & Distribution Management, vol. 50 no. 8/9
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 14 September 2015

Daniele Pederzoli and Volker G. Kuppelwieser

The purpose of this paper is to challenge earlier recommendations and explanations regarding companies’ behaviour after an economic shock and analyses worldwide retail companies’…

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Abstract

Purpose

The purpose of this paper is to challenge earlier recommendations and explanations regarding companies’ behaviour after an economic shock and analyses worldwide retail companies’ internationalization processes before and after the 2008 crisis.

Design/methodology/approach

Drawing on information published between 2003 and 2012, the authors focus on the 2008 crisis and analyse 1,500 different internationalization moves by 109 companies from 26 countries.

Findings

The analyses confirm that the pace of retail internationalization increased after the 2008 crisis, that these companies had mainly moved into countries with newly developing economies, and that the entry modes ranged from high-cost entry modes and low-cost strategies.

Originality/value

This paper provides an initial indication of retailers’ actual internationalization behaviour in the period considered. Such material has not been available previously as international retailing research has primarily focused on theoretical assumptions. By focusing on the current financial crisis, the authors highlight the problem that researchers investigating various company behaviours face when comparing these to the theoretical expectations. By using a worldwide, multisectorial, and longitudinal retailing sample to illustrate the internationalization process, the authors not only generalize companies’ internationalization behaviour, but also challenge earlier recommendations and explanations regarding their behaviour after an economic shock.

Details

International Journal of Retail & Distribution Management, vol. 43 no. 9
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 1 February 1998

Norberto Muñiz‐Martínez

It is true that the process of what has been termed the “globalisation” of the world economy is less noticeable in retail distribution than in other sectors more involved in…

3601

Abstract

It is true that the process of what has been termed the “globalisation” of the world economy is less noticeable in retail distribution than in other sectors more involved in industrial activities. Nonetheless, a slow but steady trend towards establishing a presence in other countries can be detected. In this paper an empirical analysis will be undertaken of the moves to internationalise into America (particularly the USA) by the leading 200 retail distributors in Europe. The most appropriate strategies for different formats of company will be studied. In the context of internationalisation as an alternative corporate strategy, an analysis will be carried out of the reasons leading businesses to establish themselves in countries which in principle must be more unfamiliar to them than other European states. The countries of origin and of destination of internationalisation, the trading format adopted by each enterprise and the kind of operation emerging will be identified, and, where relevant, the collaboration with local firms in these countries sought or legally required. Internationalisation will be compared with other growth options that might be available to the businesses.

Details

International Journal of Retail & Distribution Management, vol. 26 no. 1
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 6 May 2020

Fu-Chiang Yang

The purpose of this study is to address three managerial issues in a retail network under a centralised regime, including resource allocation, expansion and downsizing. In…

Abstract

Purpose

The purpose of this study is to address three managerial issues in a retail network under a centralised regime, including resource allocation, expansion and downsizing. In particular, this study investigates how to optimise resource allocation across retailers and how to decide the optimal size of a retail network for an empirical case, where 27 retailers belong to an automobile parts supplier in Taiwan.

Design/methodology/approach

The centralised data envelopment analysis (DEA) approach is used to optimise resource allocation among retailers and to seek the possibility of either an expansion and/or downsizing for a retail network.

Findings

The case company knows the best way to (re)allocate its available resources and (re)arrange the outcome goals for its own retailers. The 27 retailers are assigned specific targets for input and output adjustments to become Pareto or technically efficient units. Besides, an experiment is designed to measure how changing the number of retailers affects the group efficiency of the retail network. To keep the current aggregated output level of the retail network, the centralised supplier needs at least 24 retailers. However, the retail network with 37 retailers can achieve maximal group efficiency.

Originality/value

Centralised resource allocation is an inherent feature of most supplier-retailer relationships, where the supplier is usually a central planner with the power to allocate available resources among its own retailers. To the best of our knowledge, this is the first study to assess retail performance under a centralised regime.

Details

International Journal of Retail & Distribution Management, vol. 48 no. 7
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 3 June 2014

Aradhana Gandhi and Ravi Shankar

– The purpose of this paper is to analyze the performance of Indian retailers in recent past and derive meaningful insight for practicing managers in this area.

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Abstract

Purpose

The purpose of this paper is to analyze the performance of Indian retailers in recent past and derive meaningful insight for practicing managers in this area.

Design/methodology/approach

This paper analyses the economic efficiencies of select Indian retailers using three related methodologies: Data Envelopment Analysis (DEA), Malmquist Productivity Index (MPI) and Bootstrapped Tobit Regression.

Findings

DEA analysis has shown that five retail firms out of selected 18 are found as efficient under the CCR model of DEA and seven out of 18 retail firms are efficient under the BCC model of DEA. MPI results indicate that 61 percent of the firms have progressed in terms of the MPI during the period under consideration. The Bootstrapped Tobit Regression shows that number of retail outlets and mergers and acquisitions can be considered as the driving forces influencing efficiency of retailers in India.

Research limitations/implications

The paper has a limitation with reference to the availability of data for a few retail outlets, especially in the modeling through the Bootstrapped Tobit Regression.

Originality/value

This study seems to be the first in applying productivity analysis using DEA, MPI and Bootstrapped Tobit Regression for the Indian retail sector.

Details

International Journal of Retail & Distribution Management, vol. 42 no. 6
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 8 May 2018

Bethan Alexander, Karinna Nobbs and Rosemary Varley

The purpose of this paper is threefold: first, to establish the role of the pop-up store within the international location strategy of fashion retailers, second, to identify the…

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Abstract

Purpose

The purpose of this paper is threefold: first, to establish the role of the pop-up store within the international location strategy of fashion retailers, second, to identify the factors influencing pop-up store location choice and the importance retailers ascribe to it and third, to assess how pop-up locations are sourced and selected.

Design/methodology/approach

A multiple case study was adopted. Research was conducted using secondary data sources, observation and semi-structured interviews with senior executives with strategic responsibility for store/brand development internationally. Manual content analysis was conducted.

Findings

Key findings cover the role of Pop-up stores within international retail location strategy, notably features, forms and function, with the latter highlighting the importance of opportunistic market testing and trial, reduced risk, regeneration, ROI- and CRM-driven decisions; the factors impacting location choice and selection, specifically the trade-offs between reactive and proactive approaches and the importance of networks and intuition, and future pop-up directions.

Research limitations/implications

Due to the chosen research approach, the results may lack generalization outside of the given sector and marketplaces. Several avenues for future research are elucidated including exploration of pop-up transformations including pop-up rebrand, technology enabled, experiential and third place.

Originality/value

The study contributes to the nascent field of research by providing new insight into the role of pop-ups within international location strategy, the factors influencing location choice and selection and offers a pop-up location taxonomy.

Details

International Journal of Retail & Distribution Management, vol. 46 no. 5
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 14 September 2015

José Manuel Xavier, Victor Manuel Moutinho and Antonio Carrizo Moreira

The purpose of this paper is to estimate retailing efficiency in a 26-store women clothing retail chain and to decompose it in several measures in order to contribute to the…

Abstract

Purpose

The purpose of this paper is to estimate retailing efficiency in a 26-store women clothing retail chain and to decompose it in several measures in order to contribute to the performance improvement of this retail service firm, as well as to compare the efficiency of the different decision making units.

Design/methodology/approach

This paper uses the following measures to estimate efficiency: sigma convergence analysis; efficiency analysis; technical efficiency (TE) analysis; pure technical efficiency (PTE) analysis and scale efficiency (SE) analysis for a set of 26 stores of a women retail service brand operating in Portugal. A cross-section input-oriented data envelopment analysis (DEA) is used to analyse quarterly data sets from 2010 to 2013.

Findings

The results show that costs with personnel are slightly increasing when analysed using the sigma convergence method, although there are some geographical differences. Moreover, it is possible to witness that the retail store chain’s TE diminishes as the operations outputs do not grow as fast as input savings. On the other hand, there are no SE problems as the levels of SE are larger than pure efficiency levels.

Research limitations/implications

The main limitation of the study stems from the fact that the analysis is based on a simple retail chain, which makes it a single case study. Therefore, the generalisation of the conclusions for other firms or for other periods of analysis should be made cautiously.

Practical implications

It is shown that some stores have a good TE and other stores have some SE advantage. As such, it is possible to select some stores as benchmarks to deploy internal efficiency throughout the retail chain.

Originality/value

The contribution of this paper is based on the application of the sigma conversion and DEA techniques to evaluate efficiency in retail service store.

Details

International Journal of Retail & Distribution Management, vol. 43 no. 9
Type: Research Article
ISSN: 0959-0552

Keywords

Open Access
Article
Publication date: 25 June 2020

Elisabeth Happ, Ursula Scholl-Grissemann, Mike Peters and Martin Schnitzer

Offline retail stores have been working on improving their in-store customer experience; they have begun to realise the physical advantage they have over online channels…

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Abstract

Purpose

Offline retail stores have been working on improving their in-store customer experience; they have begun to realise the physical advantage they have over online channels. Especially sports products have a number of unique features, such as high emotional involvement or a sense of community; additionally, sports customers put emphasis on multisensory brand experience at the point of sale. This study examines the in-store customer experience (ISCX) in offline sports retail stores, taking into account the commercial uniqueness of sport.

Design/methodology/approach

A qualitative study (focus groups; n = 16) and quantitative survey (cross-sectional survey design; n = 238) were conducted to measure ISCX in sports retail stores.

Findings

The results suggest that the customers' in-store experience has a significant influence on customers' satisfaction with the sports retailer and their likeliness to recommend the store to friends, which, in turn, is significantly affected by customers' satisfaction with the retailer. Moreover, social responses to actors involved in the service encounter, for example, the interaction with employees, play a significant role for the customer in-store experience. Accordingly, sports customers strive not only for functional benefits inherent in the interaction with customers and employees but also for social benefits.

Originality/value

This study extends the knowledge by (1) replicating the ISCX scale, (2) analysing ISCX in a sports retail environment and (3) examining the influence of ISCX on the Net Promoter Score. Moreover, the findings support managers' know-how about in-store setting and help to maintain the customer relationship.

Details

International Journal of Sports Marketing and Sponsorship, vol. 22 no. 2
Type: Research Article
ISSN: 1464-6668

Keywords

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