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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: 31 January 2023

Hossein Eslami, Sertan Kabadayi and Alcheikh Edmond Kozah

This paper aims to empirically investigate the role of market-based transformative service initiatives (TSIs) during the refugee crisis and shed light on how such TSIs increase…

Abstract

Purpose

This paper aims to empirically investigate the role of market-based transformative service initiatives (TSIs) during the refugee crisis and shed light on how such TSIs increase inclusion of refugees in service systems by using market forces while creating broader benefits for service organizations themselves.

Design/methodology/approach

This paper uses the case of the World Food Program’s (WFP) Dalili smartphone application targeting Syrian refugees in the context of Lebanon. A mixed-methods approach, including in-depth interviews with the retail managers of the local supermarkets and statistical cross- and intra-regional analysis on the retailing mix elements of the local supermarkets was adopted for the empirical investigation.

Findings

The results show that the WFP’s Dalili TSI increases service inclusion of refugees by facilitating their access to the essential food services easier and at affordable prices and helps them integrate into the host community. Furthermore, such market-based TSIs were shown to have broader benefits for other stakeholders in the food retail ecosystem including retailers and nonrefugee shoppers as they are successful in improving the retailing management standards of the participating supermarkets by decreasing the average retail price of the merchandise, increasing their variety and assortment, increasing promotional offers and improving the customer service level.

Research limitations/implications

This research fills the gap in the literature for empirical investigation on the impact mechanism of market-based TSIs on service inclusion and well-being of refugees. In contrast to the majority of TSIs studied in the literature that are designed by governments or nonprofit organizations in the areas such as higher education, health care and humanitarian aids, this study focuses on the case of TSIs developed by supranational organizations using market forces in the food retail ecosystem. Furthermore, the findings suggest that TSIs could also benefit the service organizations that offer such initiatives.

Practical implications

The findings of this paper have implications for service organizations and policymakers and their ability to design effective market-based TSIs during the refugee crisis.

Originality/value

The studied case in the context of TSIs in the food retail ecosystem and the empirical approach used are academically novel. Moreover, focusing on the refugee crisis in the Middle East region is rather understudied in the service research literature.

Article
Publication date: 13 November 2020

Abhijeet Ghadge, Sujoy Bag, Mohit Goswami and Manoj Kumar Tiwari

An uncertain product demand in online retailing leads to loss of opportunity cost and customer dissatisfaction due to instances of product unavailability. On the other hand, when…

1018

Abstract

Purpose

An uncertain product demand in online retailing leads to loss of opportunity cost and customer dissatisfaction due to instances of product unavailability. On the other hand, when e-retailers store excessive inventory of durable goods to fulfill uncertain demand, it results in significant inventory holding and obsolescence cost. In view of such overstocking/understocking situations, this study attempts to mitigate online demand risk by exploring novel e-retailing approaches considering the trade-offs between opportunity cost/customer dissatisfaction and inventory holding/obsolescence cost.

Design/methodology/approach

Four e-retailing approaches are introduced to mitigate uncertain demand and minimize the economic losses to e-retailer. Using three months of purchased history data of online consumers for durable goods, four proposed approaches are tested by developing product attribute based algorithm to calculate the economic loss to the e-retailer.

Findings

Mixed e-retailing method of selling unavailable products from collaborative e-retail partner and alternative product's suggestion from own e-retailing method is found to be best for mitigating uncertain demand as well as limiting customer dissatisfaction.

Research limitations/implications

Limited numbers of risk factor have been considered in this study. In the future, others risk factors like fraudulent order of high demand products, long delivery time window risk, damage and return risk of popular products can be incorporated and handled to reduce the economic loss.

Practical implications

The analysis can minimize the economic losses to an e-retailer and also can maximize the profit of collaborative e-retailing partner.

Originality/value

The study proposes a retailer to retailer collaboration approach without sharing the forecasted products' demand information.

Details

International Journal of Retail & Distribution Management, vol. 49 no. 2
Type: Research Article
ISSN: 0959-0552

Keywords

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 emerging…

2383

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

Keywords

Article
Publication date: 21 January 2022

Yishuang Xu, Chung Yim Yiu and Ka Shing Cheung

Achieving a balanced tenant mix is a long-standing discourse in the retailing and consumer marketing literature. From the perspective of marketing mix planning, the diversity of…

1245

Abstract

Purpose

Achieving a balanced tenant mix is a long-standing discourse in the retailing and consumer marketing literature. From the perspective of marketing mix planning, the diversity of tenants is beneficial to the performance of shopping malls. This paper aims to use a revealed preference approach to study empirically the effect of retail tenant mix planning on the rents of shopping malls.

Design/methodology/approach

This study adopts a cross-disciplinary approach to develop the Island-Species-Area-Energy model to study the shopping mall marketing and management framework. The empirical data are obtained from the 129 major shopping malls in the UK.

Findings

The results confirm that the retail tenant mix is positively associated with mall size and shopping district purchasing power, implying a tenant mix equilibrium. Any deviations from the tenant mix equilibrium will impose a negative impact on total retail rents. Further, five factors, i.e. tenant mix equilibrium, building quality, locational convenience, leasing strategy and anchorage, are found to be contributing factors to retail rents.

Originality/value

The findings contribute to the current body of marketing knowledge from two perspectives: first, tenant mix effects on retail rents are empirically analysed based on the biogeography theory, which shows a tenant mix equilibrium for retail marketing planning. Second, a five-factor model on shopping mall marketing and management mix framework is developed and tested for the performance of shopping malls.

Details

Marketing Intelligence & Planning, vol. 40 no. 2
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 26 July 2011

Christopher T. Sneed, Rodney Runyan, Jane L. Swinney and Hee‐Jin Lim

This study aims to examine the extent to which consumers' perceptions of their downtown's brand identity (composed of image and positioning), business mix, and sense‐of‐place…

1119

Abstract

Purpose

This study aims to examine the extent to which consumers' perceptions of their downtown's brand identity (composed of image and positioning), business mix, and sense‐of‐place predict consumers' intention to patronize downtown.

Design/methodology/approach

A survey of residents (n=836) from four communities in Michigan and four communities in Oklahoma was conducted. The survey included scales measuring brand identity, business mix, sense‐of‐place, and patronage intention.

Findings

Positioning, image, and business mix are significant, positive predictors of consumer patronage intentions downtown. Sense‐of‐place, however, has a significant, negative effect on patronage intention.

Research limitations/implications

Though limited to eight communities in two states, this study does broaden the research in place branding by examining consumers' perceptions of location as a brand and the influence of those perceptions on patronage intentions. Validity for scales measuring brand identity, business mix, and sense‐of‐place is provided. The study provides a springboard for additional downtown branding research.

Practical implications

The negative effect of sense‐of‐place on patronage intention is troubling, indicating that a downtown which pays too much attention to preservation, walkability, etc. and not enough to brand image and business mix may suffer.

Originality/value

Despite renewed focus on retailing downtown, there exists a paucity of research examining how consumers perceive their downtown. Of the current literature, most is narrowly focused in examining consumers' perceptions in limited domains. This study seeks to broaden the research literature by ascertaining consumers' perceptions of downtown in three areas – brand identity, business mix, and sense‐of‐place.

Details

Journal of Place Management and Development, vol. 4 no. 2
Type: Research Article
ISSN: 1753-8335

Keywords

Article
Publication date: 27 February 2007

Andrew Paddison and Eric Calderwood

The paper seeks to review dynamic forms of rural retailing, by location, that have innovated through a mixture of actions leading to growth, adaptation, diversification and…

6107

Abstract

Purpose

The paper seeks to review dynamic forms of rural retailing, by location, that have innovated through a mixture of actions leading to growth, adaptation, diversification and differentiation.

Design/methodology/approach

Reviews relevant academic literature and draws upon contemporary policy‐related material that details recent innovation within the sector. A rural retail typology by location is presented: retailing within market towns, village shops and stand‐alone retailing forms (farm shops and speciality rural retail outlets).

Findings

Since, the nature together with form of what characterises dynamic and innovative rural retailing differs by location, the typology is based on the above schema. First, market towns have used growth and differentiation opportunities as strategic foci. Second, innovative village shops have applied strategies that seek to counter their structural weaknesses, harness the community and yield new revenue streams. Third, the manner in which stand‐alone retailing forms, such as farm shops together with speciality rural retail outlets, have grown and developed is reviewed.

Practical implications

Reviewing dynamic forms of rural retailing allows for a greater understanding of the operational needs for success. A lack of relevant research is cited together with examples.

Originality/value

Stereotyping rural retailing is erroneous since marginalised enterprises are juxtaposed against more innovative forms. Contrary to perceptions of rural decline, the sector is multi‐faceted with prospering sub‐sectors. The paper focuses on these more dynamic and innovative forms of rural retailing. Much of the previous focus in this sector has been on negative issues and decline. A synthesis of the key contributory phenomena is presented.

Details

International Journal of Retail & Distribution Management, vol. 35 no. 2
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 1 June 1996

Erwin Danneels

States that market segmentation is one of the most important concepts in marketing, though little has been published about its application in business practice. Explores the…

5692

Abstract

States that market segmentation is one of the most important concepts in marketing, though little has been published about its application in business practice. Explores the application of segmentation in Belgian apparel retailing. Compares the views and practices emerging from in‐depth interviews with 22 retail practitioners and six industry experts and contrasts them with the normative segmentation model. Concludes that the retail mix evolves through a cyclical process rather than a linear sequence, and that the segmentation model is more a normative than a descriptive model of retailer behaviour. The data suggest that a simple sequence fails to capture the ongoing iterative process by which retailers adjust their market offerings. Finds that the target market emerges from this process of interaction with the marketplace. Marketing academicians are encouraged to root their work in business practice.

Details

European Journal of Marketing, vol. 30 no. 6
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 August 1996

Alan Millington

Presents theoretical and methodological considerations and techniques which bear directly on the valuation of retail properties in Australia and, to lesser extents, the UK and the…

2134

Abstract

Presents theoretical and methodological considerations and techniques which bear directly on the valuation of retail properties in Australia and, to lesser extents, the UK and the USA. Surveys the Australian retail sector in terms of its overall significance for the national economy as well as the relative performance of the sector’s constituents. Considers the current domination of the sector by the regional and local shopping centres and the correlative decline in importance of retail outlets in traditional shopping streets. Contends that the dominance of shopping centres has produced an oligopolistic situation with regard to the supply of retail space in regional shopping centres because of the high regard in which such centres are held by major investing organizations. Despite the ability of shopping centres to produce income flows with apparently substantial year‐by‐year increases, this trend has been bucked in recent years by below replacement cost sale prices achieved by a number of shopping centres. Raises the crucial question of which factors should be considered most influential by valuers in assessing the capital worth of retail properties. Provides exemplary calculations by which realistic assessments are achievable. Casts a critical eye over entrenched “axioms” of the trade, such as that retail tenants can pay increased rents annually regardless of economic considerations and irrespective of the actual profitability of their retail activities. Considers the difficulties which now beset the position of specialty retailers in relation to the shopping centres in which they rent space. Argues for the importance of partnership relationships between landlords and tenants and predicts that the constant quest to maximize the rentals of individual retail outlets within shopping centres may seriously threaten the long‐term security of those centres. Presents recommendations for improving the prospects of successful trading by shopping centres against a consideration of potential developments of other purchasing means (warehouse retailing, TV retailing and catalogue shopping). Concludes that many shopping centres currently regarded as prime investments may appear less attractive when reconsidered in the light of the developments here outlined.

Details

Journal of Property Valuation and Investment, vol. 14 no. 3
Type: Research Article
ISSN: 0960-2712

Keywords

Article
Publication date: 1 September 1994

Malcolm Kirkup and Mohammed Rafiq

The tenant mix of a shopping centre is recognized widely as a criticaldeterminant of marketing and financial success. For new shopping centresthe early development of a strong…

7029

Abstract

The tenant mix of a shopping centre is recognized widely as a critical determinant of marketing and financial success. For new shopping centres the early development of a strong tenant line‐up is particularly crucial as these centres endeavour to establish their market position and market share. Recent environmental changes, however, are having a major impact on lettings and are presenting significant problems for the development and management of tenant mix in new in‐town centres. Highlights the importance of tenant mix, and shows how a high proportion of new in‐town centres have been struggling recently to secure the desired quantity and quality of lettings, in the face of increasing competition, reduced property demand, and in some cases scheme‐design deficiencies. A case example of tenancy development in the early stages of growth for one centre is analysed in detail to observe some of the difficulties, noting slow rates of growth, fluctuating occupancy levels, high rates of tenant failure and variations in merchandise mix. Concludes with a discussion of the implications for centre marketing and management.

Details

International Journal of Retail & Distribution Management, vol. 22 no. 6
Type: Research Article
ISSN: 0959-0552

Keywords

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