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The aim of this paper is to study the relationship between the popularity of discount stores and the aggregate business cycle: Does discounters' market share go up during economic contractions and go down during economic expansions? Does the aggregate business cycle contribute to the long-term growth of discounters' success? Does the relationship between discounters and the economy differ across discounter types, namely hard versus soft discounters?

The study will consider the relationship between discounters' market share and the aggregate economy between 1991 and 2008 for 15 Western European countries. Moreover, aggregated data is provided for the Western European region as a whole, which distinguishes hard from soft discounters' share. Recent time-series techniques are used to disentangle the temporary versus permanent effects of economic contractions on discounters' share.

The aggregate business cycle induces temporary upward and downward swings in discounters' market share. Moreover, part of the increase in discounters' share during an economic contraction remains beyond the contraction, resulting in a permanent boost in discounters' popularity. Same substantive findings are found for each discount type (i.e. hard and soft).

In economic contraction years the growth rate of both hard and soft discounters accelerates, leaving permanent scars on the performance levels of traditional retailers. Discounters should try to further enhance their increased popularity when the economy turns sour. Traditional retailers, on the other hand, should try to prevent consumers from switching to discounters during contractions. Future research should explore the strategies that are called for in order to do this.

Discounters are the fastest growing grocery format in Europe. Traditional retailers can no longer afford to ignore them. As such, a better understanding of the drivers of this growth is called for. This study highlights one of the potential drivers, namely the economic climate, a driver that is widely discussed in the business press with substantial implications for grocery channel management.

Illustrates the reasons that have determined the success or failure of the discount retailers on the international scene, through the identification and analysis of the strategic groups, competitive advantages, entry barriers to the sector and barriers to mobility between the groups. Three strategic groups of discount food retailers that have adopted different internationalisation strategies have been defined and a series of key success factors of the different strategic groups has been identified. The winners in the race to international expansion are in particular the leaders of the first group of German hard discount retailers. But important niches in several foreign markets can also enable growth of retailers in the second group, the German soft discount retailers specialised abroad, and of the third group, the French soft discount retailers diversified abroad.

Seeks to effect a comparison of the pricing strategies followed by hypermarkets, compared with those that discount stores carry out.

Data were collected from the direct observation of the supermarket shelves of nine frequent purchase product categories in several hypermarkets and discount stores. Diverse statistical analyses were applied to these picked up data, such as mean comparisons, ANOVA and correspondence analysis.

The article concludes that the hypermarkets tend to have higher mean prices, and use promotional tools more profusely than the discount stores.

For future research, it would be very important to examine consumer price evaluations based on a theoretical approach in the same formats, and in this way consumer reactions to price changes could be understood. Also, examining the cross‐country differences in retail stores may be quite interesting.

Relationships between hypermarkets and hi‐lo pricing, plus discount stores and EDLP pricing, have been found. Therefore, retail managers of both formats have to know all about these pricing strategies. In this way, the managers of these firms would know the kind of customers that can be attracted and the signals and image that can be projected in the market.

This paper directly compares the pricing and promotional activities of hypermarkets versus discount stores. Researching into whether price and promotional differences exist between the two format retailers will help consumers and managers to know the true price level of each format.

This paper aims to address whether the order of entry yields competitive advantage in the discount grocery industry. More specifically, the paper aims to investigate whether such advantages are based on the effects of entry on consumer perceptions rather than factors such as technological leadership or cost efficiency.

The paper combines perceptual measures of overall preferences and attribute‐level beliefs with objective measures of attribute levels in order to explore whether entry‐based advantages in this industry are due to the relationships between entry and consumer perceptions.

The findings show that early entrants are perceived to be significantly superior to later entrants. This finding also hold true for store attributes documented to be similar across chains.

A number of papers have shown relationships between order of entry and indicators of competitive advantage. This is the first study that rules out “economic performance” based explanations for such advantages, i.e. superior efficiency, technological leadership or the pre‐emption of scarce resources.

A blurring of distinctions among stores and consumers in a changing market‐place has broad ramifications for retailers, manufacturers, and wholesalers. In this paper we will first examine how stores are becoming alike, using a strategic tool to identify problems and anticipate competitive response. Second, we will see how several retail leaders have not fallen into a mold but have been able to differentiate, diversify, and grow. Next, we will consider the implications of the wholesale/warehouse club as a new stage in the evolution of retailing and wholesaling. Finally, we will examine manufacturers' concerns in coping with rapid retail evolution.

The overall purpose of this study is to enhance the understanding of customer perceived service quality within grocery retailing in a North European context. We do this by comparing customer perceived service quality evaluations of the traditional supermarket store with evaluations of the discount store.

This study is based on empirical data from four store cases (two traditional and two discount stores), including information gained from a total of 542 respondents. In the study, we have used and tested a model of grocery store service quality, presented in Vázquez et al. (2001), with structural equation modelling (LISREL) and traditional multivariate analysis (SPSS).

The ability of the Vázquez et al. (2001) model to capture customer perceived quality was below 40 per cent for both concepts which signals limited relevance and that important dimensions in the service evaluation could be missing for both of the two concepts, at least in a North European context. The results show that the traditional supermarket outperforms the discount stores on all service aspects but availability and reliability. When comparing the determinants of the service quality evaluation, the two concepts are very similar. Finally, the overall results regarding determinants of service quality show resemblance to retail studies in other countries and cultures.

This study has been limited to investigate service quality in Sweden and from two out of at least five possible retail concepts. As the explanatory power of the model is limited, future studies should explore other possible determinants of service quality, e.g. the role of technological innovations.

Kotler and Keller (2012) proposes five generic differentiation strategies: product, service, people, channels and image. The results suggest that traditional grocery stores that choose to differentiate and position themselves by focusing on service rather than physical product differentiation should work with assortment issues as well. In order to decide which aspect of service to choose and promote, companies should emphasise differences that are considered important by customers, distinct from competitors and superior in terms of delivering the overall benefit – in this case – in terms of service quality. The results show that the policy dimension would satisfy all three criterions.

The study enhances the understanding of customer perceived service quality within grocery retailing, specifically in comparison between the supermarket and the discount store concept.

This study is the first to focus on whether there is a divergence in service quality and service quality measuring between the traditional supermarket concept and the growing discount concept, and if so to what extent. Furthermore, it is a test of a model that has gained acceptance in Latin and South European countries, but in the context of Northern Europe.

The purpose of this paper is to profile grocery retailers in terms of seven value types based on Holbrook’s value typology; to link these value types to three key outcomes (i.e. satisfaction, repurchase intention, and word-of-mouth); and to evaluate the impact of the retail format on performance and importance of the seven value types.

For each retail format, the authors administered a consumer survey, resulting in an aggregate sample of 392 respondents. The authors used partial least squares structural equations modeling to test the relationships between the value types and key outcomes (i.e. importance) and ANOVAs to examine cross-format differences between latent variable scores of the value types (i.e. performance).

The three retail formats included in the study perform differently on Holbrook’s value types (e.g. non-discounters excel in terms of aesthetic value and play, compared to hard and soft discounters). Furthermore, this study reveals that the strategic importance of each value type depends on the key outcome (e.g. whereas efficiency is the main source of satisfaction, play mainly drives the other two outcomes).

The authors randomly assigned respondents to one of the three retail formats irrespective of their personal preference or patronage. To conduct value-based segmentation, respondents should evaluate either their preferred format or all supermarkets.

This study offers positioning advice to retail managers, according to their format and strategic objectives.

Unlike previous research, this paper provides a cross-format comparison of retailers based on a three-dimensional value typology and its key outcomes.

The traveling purchaser problem (TPP) has gained attention in academics to deal with different variants in real business world. This study aims to study a green TPP with quantity discounts and soft time windows (TPPQS), in which a firm needs to purchase products from a set of available markets and deliver the products to a set of customers.

Vehicles are available to visit the markets, which offer products at different prices and with different quantity discount schemes. Soft time windows are present for the markets and the customers, and earliness cost and tardiness may incur if a vehicle cannot arrive a market or a customer within the designated time interval. The environmental impact of transportation activities is considered. The objective of this research is to minimize the total cost, including vehicle-assigning cost, vehicle-traveling cost, purchasing cost, emission cost, earliness cost and tardiness cost, while meeting the total demand of the customers and satisfying all the constraints. A mixed integer programming (MIP) model and a genetic algorithm (GA) approach are proposed to solve the TPPQS.

The results show that both the MIP and the GA can obtain optimal solutions for small-scale cases, and the GA can generate near-optimal solutions for large-scale cases within a short computational time.

The proposed models can help firms increase the performance of customer satisfaction and provide valuable supply chain management references in the service industry.

The proposed models for TPPQS are novel and can facilitate firms to design their green traveling purchasing plans more effectively in today’s environmental conscious and competitive market.

Retail has evolved over the past century alongside megatrends such as urbanization, consumerism and digitalization. To contribute to existing knowledge on patterns of retail form evolution, the purpose of this paper is to investigate when and how novel retail forms have evolved in the Swedish sporting goods market.

An evolutionary approach that encompasses population thinking is used to interpret the history of sporting goods retailing in Sweden from the interwar era onwards. Drawing on archival data and interviews, the focus in the historical analysis is on the evolution of retail form variation in terms of size, strategy, product range and retail channel (online/offline).

The paper suggests that evolutionary mechanisms cumulatively have changed the sports retail population from a rather homogenous set of smaller generalist stores toward a larger variety and specialization in mainly two directions: one trajectory toward small and service-focused niche specialists and the other toward high-volume sales outlets.

The paper provides a detailed empirical account of sports retail history in Sweden and an application of theoretical concepts contributing to an integrated investigation of empirical issues and theoretical positions. It concludes that being able to attain “closures” – finding ways to close off a section of the market and avoid direct competition – has historically been a crucial capability for individual retailers to thrive.