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Article
Publication date: 23 November 2018

Katarzyna Bilińska-Reformat, Barbara Kucharska, Malgorzata Twardzik and Les Dolega

The purpose of this paper is to recognise the areas of implementation of the principles of sustainable development (SD) in the model of retail chains activity. In the paper, the…

2402

Abstract

Purpose

The purpose of this paper is to recognise the areas of implementation of the principles of sustainable development (SD) in the model of retail chains activity. In the paper, the assumption was made that nowadays it is necessary to adopt the rules following SD while making strategic decisions by retail chains.

Design/methodology/approach

The study uses secondary data sources, reports, academic literature and the case study research method. A case study research is a multi-method paradigm based on full range of a scientist’s tool-kit: reviewing literature studies, examining secondary documents and comparing the websites of investigated retail chains.

Findings

According to that business model, the authors were recognising selected components of this model, that is to say: recourses and competences of retail chains and value proposition for their customers. The greatest chances of development will be enjoyed by those retail chains that will be able to provide real value to customers. Maintaining a competitive advantage will require constant improvements in the quality of service and innovative business models connected with sustainable elements.

Research limitations/implications

It seems necessary to develop research tools that allow for identification of the level of use of the SD concept in retail chain’s business models in the future.

Practical implications

The paper is of interest to practitioners and students of retail management.

Social implications

The concept of the SD model included in the retailer business models serves to build value for the customer through the care of his quality of life. The vast majority of retailers believe that it is the responsibility of the business sector to respond to social and environmental challenges.

Originality/value

The paper intends to fill the gap in the literature concerning the influence of SD concept on changes in the business models of retail chains. The SD activities can lead to the development of specific capabilities based on intangible recourses that are sources of competitive advantage (SD). That is the main reason of undertaking this subject.

Details

International Journal of Retail & Distribution Management, vol. 47 no. 1
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 24 November 2017

Mikko Hänninen, Anssi Smedlund and Lasse Mitronen

Digitalization has transformed several industries during the past two decades. In this paper the authors focus on the retail sector, where new business models help retailers and…

9835

Abstract

Purpose

Digitalization has transformed several industries during the past two decades. In this paper the authors focus on the retail sector, where new business models help retailers and suppliers meet the ever changing and demanding needs of retail shoppers. One example of this business model innovation is multi-sided digital platforms, which have become popular as they connect consumers with suppliers from around the world with a large ecosystem to support the retail platform. The purpose of this paper is to provide an overview of how multi-sided digital platforms are transforming the retail exchange logic and assess the implications and impact of these platform-based businesses on the retail sector, especially for business managers and consumers.

Design/methodology/approach

In this paper, the authors employ literature review, conceptual analysis and qualitative case study methodology. The authors provide an overview of how the platform economy is affecting the retail sector through the illustration of four digital multi-sided platforms: Alibaba Group, Amazon.com, eBay and Rakuten Group, and what differentiates them from incumbent business models in retailing.

Findings

The findings suggest that platforms transform the transaction logic of retailing as they simply intermediate transactions between buyers and suppliers rather than handling the entire supply and logistics chain themselves. The authors highlight the role of consumer understanding and Big Data as one example of how multi-sided digital platforms differentiate from their non-platform competitors.

Practical implications

The paper highlights how incumbent retailers can compete against new forms of business, such as digital platforms, and the authors demonstrate some of the managerial capabilities needed to remain relevant amidst this new digital competition.

Originality/value

Very little empirical studies in marketing and retail literature have focused on multi-sided digital platforms and their business models. The present study fills this gap with an overview of how multi-sided digital platforms transform the retail sector.

Details

Baltic Journal of Management, vol. 13 no. 2
Type: Research Article
ISSN: 1746-5265

Keywords

Open Access
Article
Publication date: 3 January 2022

Lina Dagilienė, Viktorija Varaniūtė and Judith Maja Pütter

Taking into account retailers' critical position in the value chain, their sector's economic significance and environmental externalities, in addition to the institutional agenda…

2486

Abstract

Purpose

Taking into account retailers' critical position in the value chain, their sector's economic significance and environmental externalities, in addition to the institutional agenda, this paper aims to explore the drivers influencing retailers to shift to more sustainable business models.

Design/methodology/approach

The paper utilises the institutional competing logic, including in-depth interviews with major supermarket retail chains and one expert group discussion. The data gathered in Germany and Lithuania were complemented by desk research analysis, including corporate social responsibility (CSR) reports and management reports.

Findings

The paper provides empirical insights into how multiple drivers through institutional competing logic are brought about influencing the shift to more sustainable business models. The results show that retail chains in both countries implement their sustainability based on triple environmental-legal-financial drivers. However, different types of retail chains–namely premium retailers, typical retailers and discounters–implement their sustainability discourse differently.

Research limitations/implications

Because of the chosen research approach, the results may lack generalisability. Therefore, researchers are encouraged to test the proposed propositions further.

Social implications

Interestingly, retailers “shift” their responsibility to the consumers rather than encourage themselves to make more sustainable choices. The authors observe a more passive and responsive role of retailing chains because of the inherent trade-off between revenue growth and sustainable consumption.

Originality/value

The original contribution lies in exploring how retail chains adapt institutional competing logic and are influenced by multiple drivers when implementing their sustainability activities. In addition, the authors propose a conceptual model for retailers' sustainability management, as well as formulate three research propositions.

Details

International Journal of Retail & Distribution Management, vol. 50 no. 13
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 14 March 2016

Loo-See Beh, Abby Ghobadian, Qile He, David Gallear and Nicholas O'Regan

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…

5815

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Practical implications

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.

Originality/value

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.

Details

Supply Chain Management: An International Journal, vol. 21 no. 2
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 3 July 2007

Jonathan Reynolds, Elizabeth Howard, Christine Cuthbertson and Latchezar Hristov

Neither retail formats nor business models are static entities. Retailers develop new formats, manage existing formats and discard formats over time, as a consequence of many…

13225

Abstract

Purpose

Neither retail formats nor business models are static entities. Retailers develop new formats, manage existing formats and discard formats over time, as a consequence of many contributory factors in the retail environment. The paper provides a brief summary of our existing understanding of the retail innovation process and of the longer term retail format lifecycle, before placing this alongside recent UK research into the contemporary practice of format innovation. It explores four features of recent format change in the UK that provide the basis for distinctive business models.

Design/methodology/approach

Analysis is derived from interviews with retail practitioners and supported by quantitative evidence from government statistical sources.

Findings

The paper concludes that whilst existing models of retail format change can risk oversimplifying and formalising what are often experimental, incremental and often accidental processes, they can complement our understanding of longer term trends in UK retail formats.

Practical implications

The evolution of retail formats, together with the retail business models of which they are an expression, has been a continuing source of interest amongst stakeholders ranging from consumers, developers and investors. Findings demonstrate that innovation is seen as providing an important source of diversity and renewal for urban and suburban spaces.

Originality/value

The paper is of interest to practitioners and students of retail management.

Details

International Journal of Retail & Distribution Management, vol. 35 no. 8
Type: Research Article
ISSN: 0959-0552

Keywords

Open Access
Article
Publication date: 15 March 2022

Johan Hagberg and Anna Jonsson

The paper aims to clarify how an incumbent retail organisation explores digitalisation for its existing business.

18525

Abstract

Purpose

The paper aims to clarify how an incumbent retail organisation explores digitalisation for its existing business.

Design/methodology/approach

The paper draws from an in-depth case study of home-furnishing retail giant, IKEA conducted with semi-structured interviews, participant observations and document analyses.

Findings

In the exploration phase of digitalisation, three major activities – interpreting, interrelating and integrating – illuminate how the exploration process can be organised in practice.

Originality/value

Although digitalisation ranks amongst the most significant ongoing transformations in retail businesses, research on how incumbent retail organisations have engaged in exploring digitalisation in practice has remained scarce. The paper contributes insights into digitalisation processes in retail businesses that may also apply to other trends affecting the retail industry.

Details

International Journal of Retail & Distribution Management, vol. 50 no. 13
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 16 May 2022

Nikolaos A. Panayiotou and Konstantinos E. Stergiou

The purpose of this paper is the development of a reference model contributing to the identification of the retail supply chain activities that can be improved by the…

857

Abstract

Purpose

The purpose of this paper is the development of a reference model contributing to the identification of the retail supply chain activities that can be improved by the implementation of Lean Six Sigma (LSS) initiatives, following DMAIC steps and using proposed tools, based on contemporary technologies and best practices.

Design/methodology/approach

The reference model was developed combining the existing literature knowledge about the areas of supply chain that LSS can improve and the data collected by two big retailers in Greece about their supply chain operation. The integration of two sources of information led to the modeling of the retail supply chain processes and the proposal of appropriate LSS initiatives for their improvement.

Findings

This paper aimed to detect the pain points of a retail supply chain, which can be achieved by following the steps of DMAIC and applying specific LSS initiatives as described in the reference model, to introduce the trends of the sector in terms of logistics and supply chain.

Practical implications

The reference model of this paper can be used as a comprehensive guide of LSS implementation in the retail supply chain and help the companies of such a significant sector for the economy.

Originality/value

The literature review revealed that there is a lack of publications concerning LSS implementation in retail supply chain and in the retail sector in general. The development of this model contributes to the filling of this gap by providing a complete reference model, which strives to overcome the barriers of LSS adoption in retail supply chain.

Details

International Journal of Lean Six Sigma, vol. 14 no. 1
Type: Research Article
ISSN: 2040-4166

Keywords

Article
Publication date: 5 May 2020

Beth Davis-Sramek, Rafay Ishfaq, Brian J. Gibson and Cliff Defee

The purpose of this research is to provide a theoretical explanation of the strategic and structural changes occurring in US omnichannel retail supply chains. Using longitudinal…

2760

Abstract

Purpose

The purpose of this research is to provide a theoretical explanation of the strategic and structural changes occurring in US omnichannel retail supply chains. Using longitudinal data, the research documents transitions in retailers' supply chain strategies, specifically related to the order fulfillment process. It further offers explanation for how and why these transitions occurred.

Design/methodology/approach

This research uses a process theory lens to explain the business model transformation of the omnichannel order fulfillment process. Using a case study approach, a longitudinal multicase study was conducted with six large US retailers over a span of 10 years. Within-case and cross-case analysis identifies the sequence and rationale of different strategic and structural shifts in retailers' omnichannel order fulfillment strategy.

Findings

The within- and cross-case analyses offer insight into how the transitions occur, at what rate they occur across several different retailers, and why the rate can differ across the stages of omnichannel transition among retailers. The research documents that retailers took varied approaches to strategically develop and structurally change their order fulfillment processes in their transition to omnichannel retail. The findings reveal that these approaches are dependent on retailers' store-based logistics capabilities and specific supply chain arrangements within their retail segment.

Research limitations/implications

The longitudinal and theoretically driven approach provides researchers a better understanding of the business model transformation in US retail omnichannel operations. This approach builds theoretical context around why and how strategic and structural changes in omnichannel fulfillment occurred over time. It also explains the underlying omnichannel phenomenon more accurately than research focused on discrete changes at a single point in time.

Practical implications

The findings and managerial insights can assist practitioners in understanding how environmental changes have led to strategic and structural shifts across different stages of omnichannel fulfillment evolution. These insights also provide guidance to retailers that are currently in early stages of developing their omnichannel fulfillment strategy.

Originality/value

Logistics and fulfillment operations of retailers have changed dramatically over the last 10–15 years. The authors apply a process theory lens to explain how and why retailers have integrated their channels to achieve omnichannel success at the store level.

Details

International Journal of Physical Distribution & Logistics Management, vol. 50 no. 5
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 3 October 2021

Guillaume Do Vale, Isabelle Collin-Lachaud and Xavier Lecocq

To cope with online competitors and new consumer behaviors, retailers need to hybrid digital and physical offerings to implement an omni-channel business model. This constitutes a…

1642

Abstract

Purpose

To cope with online competitors and new consumer behaviors, retailers need to hybrid digital and physical offerings to implement an omni-channel business model. This constitutes a digital transformation of the traditional business model. However, business cases on how traditional retailers are shifting from multi-channel to omni-channel retailing are lacking. This paper aims to explore the different issues and organizational paths during the transformation of a business model.

Design/methodology/approach

This study is based on a qualitative multiple case study of five retailers with a global reach currently implementing an omni-channel business model.

Findings

This research sheds light on three main issues encountered by retailers and the different underlying decisions when moving toward an omni-channel business model. The first relates to revenue attribution across channels, which involves rethinking traditional key performance indicators to give incentives to stores when promoting digital offers. The second issue concerns the supply chain decisions associated with cross-channel operations. The third issue relates to the delicate balance between global reach (digital channel) and local reach (specific store) for communication on social media and marketing decisions on pricing. This study provides empirical evidence about the variety of choices that retailers make to cope with the issues during the implementation of an omni-channel business model.

Originality/value

This work explores the issues faced by established firms when moving toward a new business model that is the hybridization of two existing business model managed separately. It provides comprehensive and clear illustration of how to manage such a business model transformation process that can be used by both business strategy practice and academic research.

Details

Journal of Business Strategy, vol. 43 no. 6
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 10 April 2007

Phil Megicks

This study aims to investigate the way in which small retailer performance is influenced by strategy at different levels. It also aims to propose that business level strategy is…

7706

Abstract

Purpose

This study aims to investigate the way in which small retailer performance is influenced by strategy at different levels. It also aims to propose that business level strategy is more important to success than functional level strategy in small retail firms, as this is what enables them to distinguish their business from competitors and effectively set about competing in their markets.

Design/methodology/approach

Data were collected from a mail survey of 305 independent retailers in the UK. Multivariate statistical methods were used to develop appropriate variables and explore the relationships between level of strategy and performance.

Findings

The results indicate that business level strategy variables have a significant influence on performance whereas functional levels do not when their combined effects are analysed using hierarchical regression modelling.

Research limitations/implications

The caveats normally associated with survey methods apply, as do those related to the use of cross‐sectional, self‐report, and managerial perceptions data. Implications for retail strategy theory and small retailers' performance are addressed.

Practical implications

The importance of business level strategy generally and its specific elements are considered with a view to providing guidance to management decision makers and policy advisors.

Originality/value

Reliable measures for retail strategy variables are developed in the paper. The research distinguishes the performance effects of retail business strategy from retail functional strategy and supports the view that business strategy decisions are superior in their market significance over operational retail mix decisions.

Details

Management Decision, vol. 45 no. 3
Type: Research Article
ISSN: 0025-1747

Keywords

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