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The purpose of this paper is to better understand the unique competitive positioning characteristics of off-price retailers and how they compare to other types of retailers. The authors compare off-price and upscale off-price retailers with four major formats of retailers: first, discount department store/warehouse club retailers; second, moderate department store retailers; third, department store retailers; and finally, specialty department store retailers.

The paper employs a representative sample that was randomly drawn from four primary metropolitan cities in the USA. The data were collected using telephone interviews by a prominent, marketing research firm. A series of discriminant analyses were conducted to examine the data.

The findings of the paper indicate that the off-price formats were consistently positioned at extreme points along the price/value continuum, signifying the strongest value-orientation among the other retail formats. The authors also found that while the upscale off-price format followed the specialty department stores in terms of fashion. The results point to an important disadvantage of the off-price format – although strong on price/value, they often fall short on fashion and many other store attributes that may be important to luxury-oriented customers.

The paper employed a sample from several cities collected using a telephone interview methodology within the US. Due to these limitations, the findings of this paper may be hampered by this methodology and not generalize to regions outside of the US. Future research should examine how the demise of most of the upscale off-price retailers and growth of flash web sites have changed the competitive structure of retailing.

The results demonstrate that the positioning of the off-price retail format is unique from other formats. The retail formats occupy distinct positions. The off-price retail format is strongly associated with the price/value position but only moderately fashionable to customers, especially when compared with the department and specialty department store formats. In contrast, the upscale off-price format, while also strongly positioned along the price/value continuum, is considered much more fashionable than the off-price retail format. In fact, the upscale off-price retail format only trails the specialty department store format in terms of fashion.

The unique characteristics of the off-price retail format and growing interest from upscale department stores underscores the need for a comprehensive understanding of the motives of the off-price shopper. This paper provides retailers with a more complete understanding of the store attributes that differentiate the off-price retail format from other major retail store formats. The overall objective of this study is to offer a comprehensive view of the positioning of off-price retailers compared with many alternative retail formats.

The “off-price” retailing concept is defined as the presentation of limited inventories of products in a “disorganised” retail environment which provides an extra level of “challenge” to the shopping experience. Research has identified “off-price” shoppers as those who approach this challenging experience in a purposeful, task-driven way. This current research contributes new knowledge by testing the impact of antecedents (i.e. involvement) on the “off-price” shopper experience and the moderating role of national culture across two distinct cultural groups.

Data were collected via a self-completed, anonymous, online survey provided to a sample of Australian (n = 355) and Chinese (n = 400) shoppers who were identified as regularly shopping for fashion in “off-price” retail stores.

The research found that the consumer's level of involvement positively impacted their “off-price” shopping experience in terms of effort/mastery and pride. However, in contrast to current knowledge of East-Asian and Western cultural variances, limited moderation effects were identified. All national cultural dimensions interacted with product involvement in influencing consumer pride. Whilst product involvement decreased with pride in higher individualism, uncertainty avoidance, long-term orientation and indulgence cultures, these reversed in cultures with a lower score in these four dimensions.

This new research extends knowledge of “off-price” shopper behaviour by testing the levels of involvement and experience across two distinctly different cultures – East Asian and Western – and challenges existing knowledge of cultural variances. Further, the work extends the use of achievement goal theory as an approach to delineate these consumers from other cohorts.

The authors examine the role of entrepreneurial business models in the reverse supply chain of apparel/fashion retailers. The purpose of this paper is to offer an alternative approach to the “return to the point of origin” prevalent in the reverse chain of manufacturers but less technically and economically feasible in the case of apparel/fashion retailers. This approach, second-life retailing, not only reduces waste but also democratises consumption.

The paper is based on an extensive literature review, semi-structured interviews with managers of two second-life retailers in Malaysia and observations of a number of stores.

Using the Business Model Canvas, the authors demonstrate the essential characteristics of second-life retailers. Retailers in this study, unlike retailers in the developed world, combine traditional business models with off-price retailing. There is no clear demarcation between the forward and reverse supply chain used to manage first- and second-hand retailing.

The paper demonstrates the potential of innovative business models in the reverse supply chain. It encourages managers to look beyond the “return to the point of origin” and seek imaginative alternatives. Such alternatives potentially could result in additional revenue, enhanced sustainability and democratisation of consumption meeting triple bottom line objectives.

This paper highlights the importance and relevance of entrepreneurial business models in addressing the reverse supply chain, demonstrating this with the aid of two Malaysian off-price retailers. It also contributes to our nascent knowledge by focusing on emerging markets.

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.

This paper builds a theoretical argument of how the Internet increases the scope for disintermediation and analyzes the changes in the structure of transaction costs in the case of retailing. The paper treats the Internet as a low‐cost selling technology that needs substantial customers acceptance and a specific business model in order to be a viable alternative to traditional retailing. The proposed model predicts that different types of traditional retailers follow different strategies with respect to e‐commerce depending on their pre‐Internet market positioning. These conclusions are supported by empirical evidence from the adoption strategies, followed by a sample of well‐established U.S.‐based retailers. This study shows that retailers whose traditional selling technology is best approximated by e‐commerce are more likely to be among the first to reap the benefits of low‐cost online distribution.

The case is written based on publicly available data from primary sources such as the company’s annual reports, company website and the company’s presentations, as well as from secondary sources comprising newspaper articles, research papers, research magazines, magazine articles, industry reports, research reports, etc. as indicated in the references. The company’s financials and peer data are sourced from the Thomson Reuters Eikon database.

The case examines the financial position of Macy’s, Inc., America’s largest and one of the oldest premier departmental stores, with a consolidated annual turnover of US$18,097m in the fiscal year 2020/2021 (FY, 2021). Over the previous few years, the company had been struggling with decreasing market share and profitability mainly due to increasing competition from online retailers and deep discounters, which was affecting the company’s share price. With the appointment of a new chief executive officer (CEO) in fiscal year (FY) 2017, Macy’s, Inc. undertook several changes to revive its financial health and improve its market share. However, it still registered heavy losses of US$3,944m in the FY 2020/2021, the company’s first time in the past decade. With many retailers filing for bankruptcy, was there more that Macy’s could do to improve the company’s position and regain lost investor confidence? Will its entry into emerging markets play a crucial role in its turnaround?

The case can be used in undergraduate and postgraduate courses such as accounting for managers, financial statement analysis, management accounting, introduction to accounting and advanced financial statement analysis. The case can also be effectively used to understand the primary fundamental analysis of the company that involves understanding the company’s positioning and strengths, weaknesses, opportunities and threats analysis. The case would also help business management and entrepreneurship students to get a preliminary idea about the change management process. Finally, the case can be used to familiarize students with using Microsoft Excel to build financial analysis worksheets.

Teaching notes are available for educators only.

The purpose of this research is to examine the relationship of older Generation Y (Gen Y) customers' (18‐27) shopping orientations to their expectations for retail services. It also seeks to assess the importance and impact of service expectations and perceptions on customer satisfaction and loyalty when shopping for apparel in different types of retail outlets.

Three different retail settings (department, specialty, and discount stores) were examined with parallel lists of retail service‐related questions using a convenience sample of older Gen Y female customers. Descriptive analysis, exploratory factor analysis, F‐tests, and regression analysis were employed.

Shopping orientations were related to older Gen Y customers' expectations for retail services and patronage in all three apparel retail settings. The modified SERVQUAL scale represented one grand service construct in each retail setting. Older Gen Y customers' expectations for service differed by store type, and their service expectations, service perceptions, and service quality were related to retailer satisfaction and store loyalty.

Generalizability of findings may be limited as the study was conducted with female older Gen Y customers shopping for a singular apparel category.

This study illuminates how retail services create value and satisfaction for older Gen Y customers. Results aid in development of service strategies and training programs by type of store outlet.

The study contributes to the scant literature concerning service quality and service expectations for female older Gen Y customers.

This research provides a comprehensive overview of the luxury brand cognitive and affective experience, category ownerships and consumption level of affluent adult consumers in the USA. The purpose of this study was to illuminate generational cohorts’ differences and/or similarities among the consumers regarding collecting behavior of, brand self-congruity toward and emotional brand attachment with fashion luxury brands.

Using a cross-sectional quantitative approach, the authors conducted a national, representative online survey, 443 usable responses were collected from four generational cohorts, namely, older boomers, younger boomers, Generation Xers and Millennials, who reported an annual household income of US$150,000 or more. Descriptive and multivariate statistical analyses were used to provide the empirical findings.

Findings suggest that there are significant differences in the luxury brands they owned the most; Millennials exhibited significantly more frequent purchases of luxury fashion goods for all retail types – both brick-and-mortar and online, as well as upscale and discount-image retailers, compared to older Baby Boomers; and there are clear distinctions of cognitive, affective and behavioral responses toward fashion luxury goods between Millennials and older Baby Boomers. For instance, Millennials are more emotionally attached to luxury fashion brands, they see themselves more aligned with the brand image, and they collect such goods significantly more, compared to the older Baby Boomers.

By providing empirical evidence of contrasting each generational group’s unique consumption behavior in terms of luxury brand goods such as ownership level (accessible vs high-end luxury), retail channel choice behavior, cognitive, affective and behavioral responses toward the luxury fashion goods, the authors provided clear strategies for the luxury brand managers regarding two distinctive segments in the luxury marketplace.