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Article
Publication date: 31 May 2021

Carys Jane Egan-Wyer, Steve Burt, Jens Hultman, Ulf Johansson, Alice Beckman and Clara Michélsen

The study aims to explore how concept stores (theoretically) differ from other experience-based retail formats, and hence, how they (practically) contribute to a…

Abstract

Purpose

The study aims to explore how concept stores (theoretically) differ from other experience-based retail formats, and hence, how they (practically) contribute to a diversified retail store portfolio.

Design/methodology/approach

Case study based on semi-structured, qualitative interviews with seven IKEA retail managers, three industry experts and 26 customers of IKEA concept stores in London and Stockholm.

Findings

The concept store represents a conceptual departure from other experiential store formats. It is neither fully experiential in the sense that it is not only about marketing communications nor is it sales or profit-focused. Its aim is to be an accessible touchpoint that reduces friction on a diversified customer journey with its value to the retail portfolio being that it attracts new and latent customers, mitigates existing inhibiting factors and drives them to other touchpoints.

Research limitations/implications

Ideas about the different characteristics of new store formats and their potential to shape the customer experience are extended. New formats reflect innovation in retailing and are part of a retail portfolio which generates different customer expectations and determinants from traditional store formats which provide the customers' existing reference point.

Practical implications

The contributions of new formats should be evaluated in light of other existing formats in the portfolio and not isolated. This is particularly true when considering format cannibalisation and the potentially extended customer journey that arises when customers use traditional format stores and new concept format stores simultaneously.

Originality/value

Previous research, using sales metrics and market-based results as performance determinants, suggests negative outcomes for format diversification. Our study suggests that the contributions of the concept store format should be viewed from an overall customer journey perspective and the “performance” of different format based touchpoints are not best captured through traditional sales evaluation methods.

Details

International Journal of Retail & Distribution Management, vol. 49 no. 7
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 1 January 2004

Kenneth C. Gehrt and Ruoh‐Nan Yan

Most research related to consumer choice of retailers emphasizes retailer attributes and/or consumer characteristics. Since many retail formats, including online retailing

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9695

Abstract

Most research related to consumer choice of retailers emphasizes retailer attributes and/or consumer characteristics. Since many retail formats, including online retailing, have emerged in recent years, knowledge of how consumers select retail formats must be updated. A source of influence that has been examined to a very limited extent for store retailers but not for emerging retail formats is situational influence. From a modern interactionism perspective, this study investigates the influence of situational as well as consumer and retailer factors on preference for online, catalog, and store formats. Key results show that situational factors have significant influence on online and catalog format selection and perceptions of attributes that are crucial to that selection.

Details

International Journal of Retail & Distribution Management, vol. 32 no. 1
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 5 February 2018

Edyta Dorota Rudawska and Katarzyna Bilinska-Reformat

The purpose of this paper is twofold: to identify and assess the direction of development of food retail formats in Poland under the influence of a changing business…

Abstract

Purpose

The purpose of this paper is twofold: to identify and assess the direction of development of food retail formats in Poland under the influence of a changing business environment; and to identify the key challenges that food retail companies in Poland face nowadays.

Design/methodology/approach

The approach in this paper is a systematic literature review of publications in the Web of Science, Ebsco and Pro-Quest electronic databases from 1990 (from the emergence of large-scale foreign chains in the Polish market) to 2016, as well as the results of research carried out by Polish and international research centers, food retailer groups and institutes. The paper is based on the analysis of secondary data that present the results of research carried out on the Polish food retailing market. These analyses included the development of food retailing formats operating in Poland.

Findings

According to the research results analyzed, the evolution of retail formats is an embodiment of innovations introduced by retail companies and is based on the mutual permeation of elements previously associated with a specific retail format. Currently, the blurring of differences between individual retail formats can be observed in respect of two formats in particular, i.e. discount and delicatessen. The discount format occupies a special position on the Polish market, though it differs significantly from a “classical” discount. In discount stores so-called premium group products can be purchased, with stores more and more frequently being located in expensive places, e.g. in shopping centers or in their vicinity. At the same time, the popularity of convenience stores is increasing with a simultaneous decrease in the significance of large-format stores.

Originality/value

This paper provides interesting insights into the development of food retailing formats in Poland and the influence of changes in the business environment in that process. In addition, the paper describes the specifics of the Polish market, detailing literature-based theories pertaining to the development of retailing forms. It also focuses on the perspectives and directions in the future development of retail formats.

Details

British Food Journal, vol. 120 no. 2
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 5 August 2014

Rituparna Basu, Kalyan K. Guin and Kalyan Sengupta

The purpose of this paper is to explore store choice behaviour of Indian apparel shoppers and analyses the factors influencing their choice of retail formats from an…

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1156

Abstract

Purpose

The purpose of this paper is to explore store choice behaviour of Indian apparel shoppers and analyses the factors influencing their choice of retail formats from an emerging market perspective.

Design/methodology/approach

The research draws on a data set of 336 structured questionnaires with adult urban Indian respondents to understand their perceptions about organised and unorganised apparel store formats. The exploratory study uses a comprehensive list of demographics, shopping situations and format stimuli parameters along with two established psychographic scales to assess the extent of their effect on the store choice of apparel shoppers.

Findings

Factor analysis revealed five well defined store attributes influencing the apparel shoppers’ decision. The growing market for organised retail with a preference for multi brand stores is highlighted. The study establishes that the shoppers’ perception of single-brand stores is still going through a formative phase. Further at the micro level of the decision process, significant differences are established by a number of variables.

Research limitations/implications

The paper explores the store choice behaviour from a wider perspective that may be useful for future research on developing integrated store format choice models. However, the data used herein relates to a cross-section of shoppers in urban India due to the feasibility and convenience of studying relatively organised retail forms and structure of retail in an emerging market environment.

Originality/value

The paper attempts to enumerate befitting analyses of factors that influence the store choice behaviour of apparel shoppers by using apt format classifications that are specific to the emerging retail market scenario in India.

Details

International Journal of Retail & Distribution Management, vol. 42 no. 8
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 10 July 2017

Guenther Botschen and Philipp K. Wegerer

The purpose of this paper is to engage in the research gap regarding the missing link between retail innovation and branding by providing a brand-driven process to…

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1843

Abstract

Purpose

The purpose of this paper is to engage in the research gap regarding the missing link between retail innovation and branding by providing a brand-driven process to systematically develop retail format innovation projects. The so-called “Brand-driven Retail Format Innovation” (BRFI) approach provides a structured three-phase model that serves as a conceptual guide for the development of any type of retail format.

Design/methodology/approach

Longitudinal collaborative action research over a time span of 20 years plus extended case study research to develop the current BRFI approach.

Findings

BRFI is a circular three-phase framework, which integrates branding, and retail format innovation. It starts with the definition of the intended retail brand identity, which in phase 2 becomes translated into concrete touchpoint experiences along the main constituents of a retail format, finally during phase 3 materializing into the new retail format. A case study of a major food retailer is prototypically used to illustrate the application of the designed approach and to report achieved results.

Research limitations/implications

Brand-driven retail format development based on translating socio-cultural meanings into touchpoint experiences to materialize format constituents is opening up new research avenues to govern retail format development. At present the approach is based on retail and services case studies in Western Austria.

Practical implications

The three-phase model represents a practical tool for retail managers, who want to renew and to develop their retail format in a structured way. The approach is applicable to all retail industries from small- to large-scale organizations as well as online and offline environments.

Originality/value

This is the first study engaging in the missing link regarding retail innovation and branding by providing a brand-driven process to systematically develop retail format innovation projects. BRFI locks into anthropological research findings where cultural meanings are considered as the main source for the construction of brand identities whereby the new retail format is transformed around brand-derived touchpoint experiences.

Details

International Journal of Retail & Distribution Management, vol. 45 no. 7/8
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 8 April 2014

Bernhard Swoboda, Bettina Berg and Dan-Cristian Dabija

The purpose of this paper is to emphasize the important but neglected role of retail formats in the transfer and positioning decisions of international retailers. The…

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1608

Abstract

Purpose

The purpose of this paper is to emphasize the important but neglected role of retail formats in the transfer and positioning decisions of international retailers. The paper examines the role of core and country-specific attributes of particular formats in determining retailers’ local positioning in inter-format competition.

Design/methodology/approach

Focussing on three distinguished grocery formats (i.e. discounters, supermarkets, and hypermarkets) and using multiple-group structural equation models, the authors conducted consumer surveys in Germany and Romania to evaluate consumer perceptions of the core attributes of those formats and their influence on retail brand equity and consumer loyalty.

Findings

Although consumer perceptions of core attributes differ between formats in Germany and Romania, most of the core attributes of the formats affect retail brands with equal strength in both markets. Retail brand equity determines loyalty to all formats in both countries.

Research limitations/implications

Retailers transferring their formats to foreign countries should place particular emphasis on managing the core attributes of a specific format, as these attributes are of paramount importance in establishing a strong brand. Additional country-specific attributes are also relevant to varying extents, depending on the particular format that is used. Assessing causal relationships extends retailer knowledge of the role of format attributes.

Originality/value

This study proposes a format-specific approach that is novel to international retailing research. The country comparison strengthens the study's implications, considers both a developed and an emerging economy, and accounts for the preference of Western European retailers to expand into Eastern European countries. The paper concludes that format transfer and positioning decisions occur within the boundaries of core format attributes.

Details

International Marketing Review, vol. 31 no. 2
Type: Research Article
ISSN: 0265-1335

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Article
Publication date: 9 March 2015

Ana Paula Miotto and Juracy Gomes Parente

The purpose of this paper is to develop a taxonomy to describe and synthesize the retail strategies and store formats in the fast-changing modernization context of…

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2187

Abstract

Purpose

The purpose of this paper is to develop a taxonomy to describe and synthesize the retail strategies and store formats in the fast-changing modernization context of emerging markets. It identifies how these different formats are related to the existing literature about retail evolution. The paper proposes analogies between the empirical findings and the Big Middle Theory model developed by Levy et al. (2005).

Design/methodology/approach

Structured observations and personal interviews were conducted with managers/owners of 108 apparel stores located in three unplanned shopping districts in São Paulo, Brazil. Cluster analysis was used to derive the store formats.

Findings

The results identify four store formats – old fashioned, price focused, specialized, and consolidated – reflecting diverse marketing strategies and different stages in the retailing modernization cycle. There is a striking resemblance between these empirically derived formats and the four types of retail segments (Big Middle, Low price, Innovative, and in Trouble) proposed by the Big Middle model.

Research limitations/implications

There are limitations due to the exploratory nature of the research: the specific context (São Paulo, apparel retail sector) where the empirical data was collected restricts the generalization of the results to other situations; lack of precision in the appraisal of the variables might limit the research replicability. Nevertheless, this research contributes to expanding the scarce knowledge about the retailing phenomenon in emerging markets. An extension of the Big Middle model is suggested to depict the existing retail formats in emerging markets, offering therefore a theoretical contribution to the retail literature.

Practical implications

The study provides retailers with a framework against which to map their format, competitive strategy, and stages of the modernization cycle, enabling them to better adjust the configuration of their marketing mix variables. It also offers a classification scheme of stores formats which will help to describe the apparel retailing industry in emerging markets.

Social implications

Public policies are suggested to technically assist the modernization process and survival of more vulnerable retail formats.

Originality/value

Considering the fast-growing economic importance of the new “low-middle class” of emerging markets, and also the relevance of apparel retailing, this research is relevant and unique because it helps to bridge a gap in the limited literature and knowledge in this area.

Details

International Journal of Retail & Distribution Management, vol. 43 no. 3
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 7 October 2014

Ronald L. Hess Jr and Lawrence Ring

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…

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1262

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Practical implications

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.

Originality/value

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.

Details

International Journal of Retail & Distribution Management, vol. 42 no. 10
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 15 August 2016

Kim Willems, Sara Leroi-Werelds and Gilbert Swinnen

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…

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2615

Abstract

Purpose

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.

Design/methodology/approach

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).

Findings

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).

Research limitations/implications

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.

Practical implications

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

Originality/value

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

Details

Journal of Service Management, vol. 27 no. 4
Type: Research Article
ISSN: 1757-5818

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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…

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12494

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

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