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Article
Publication date: 1 February 2008

Jason M. Carpenter

This paper seeks to provide an updated, general understanding of supercenter shopping behavior in the USA.

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Abstract

Purpose

This paper seeks to provide an updated, general understanding of supercenter shopping behavior in the USA.

Design/methodology/approach

The study employs a sample generated from Retail Forward panel data to assess the impact of demographic variables, including gender, age, ethnicity, education, income, marital status, and household size, on supercenter shopping frequency across four product categories (apparel, health and beauty, home furnishings, and consumer electronics). Descriptive and inferential statistical techniques (regression, ANOVA) are used to evaluate the data.

Findings

The paper identifies demographic groups who frequent supercenters and examines patronage motives as drivers of supercenter shopping behavior.

Research limitations/implications

Generalizations of the findings of this study to markets outside the USA are limited due to the differences in consumers and retail formats available in various countries. Future research could compare shopping behavior within large formats across international markets.

Practical implications

This research provides supercenter retailers who operate within the USA with specific knowledge of the patronage motives driving cross‐category shopping in supercenters (e.g. value, one‐stop shopping convenience, brands, product assortment) and identifies the demographic characteristics of cross‐category shoppers. The results suggest marketing strategy implications for supercenter operators in the US market. As competition in the sector continues to evolve and consumer demographics change within the US market, understanding cross‐category shopping will be critical to retailer performance in the industry.

Originality/value

This study uses demographics and patronage motives as a framework for profiling cross‐category shoppers in the US supercenters. The paper is unique because there are few similar empirical studies which focus on consumer behavior within supercenters.

Details

International Journal of Retail & Distribution Management, vol. 36 no. 1
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 1 May 2000

Kathleen Seiders, Constantine Simonides and Douglas J. Tigert

Focuses on the impact of supercenters on traditional food retailers in four markets, including two small cities (Victoria, Texas; Gainesville, Georgia) and two large cities…

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Abstract

Focuses on the impact of supercenters on traditional food retailers in four markets, including two small cities (Victoria, Texas; Gainesville, Georgia) and two large cities (Columbus, Ohio; Omaha, Nebraska). Consumer surveys were conducted in order to assess the effects of the entry of Meijer, Wal‐Mart, Kmart, and Target supercenters. The results show supercenters can gain from 15 to 20 percent of primary shoppers and an even greater proportion of secondary shoppers. Furthermore, the supercenter primary shoppers, and especially those of Wal‐Mart and Meijer, identified low price and assortment more often as the reason for store choice. In comparison, traditional supermarket primary shoppers were less willing to trade off locational convenience or, in some cases, quality and assortment. Wal‐Mart is predicted to continue to rapidly gain share at the expense of competitors who do not differentiate themselves in some significant way.

Details

International Journal of Retail & Distribution Management, vol. 28 no. 4/5
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 1 June 2005

M.M. Adel and M.T. Hossain

The purpose is to study the possible environmental impact from a supercenter construction on a 313,643‐m2 land by the Bayou Bartholomew.

Abstract

Purpose

The purpose is to study the possible environmental impact from a supercenter construction on a 313,643‐m2 land by the Bayou Bartholomew.

Design/methodology/approach

The sources of information were field work, flood maps, flood models, 100 years of rainfall data, soil quality, water infiltration rate, and traffic flows in the areas around the supercenter. Rainfall data were used to find the frequency of flashfloods under different flood models. The supercenter center obstructs the virgin drainage of water down the bayou. Bernoulli's equation was used to estimate delays in the flashflood drainage following the constricted flow after the construction of the supercenter. Overloads of traffic flows on selected city roads in the event of submergence of the main road were studied.

Findings

A total of eight major flashfloods per century occur. Bernoulli's theorem predicts flooding over wider areas and of longer duration. About 32,248 m3 of recharging of groundwater will be affected. Traffic loads will increase by about three times on the state highway 15 beside the supercenter. Rain‐drained automobile engine oil drips will cause bayou's water quality to deteriorate.

Research limitations/implications

Prediction needs to be checked during flashfloods occurrences. Water quality in the bayou upstream and downstream of the supercenter needs to be monitored.

Practical implications

Policy makers in the city government and urban development will benefit from the findings.

Originality/value

The paper upholds the multifarious environmental problems and as such it is of interest to urban planners, farmers, water quality monitors, groundwater hydrologists, and businessmen who would like to serve the community.

Details

Management of Environmental Quality: An International Journal, vol. 16 no. 3
Type: Research Article
ISSN: 1477-7835

Keywords

Abstract

Details

The CASE Journal, vol. 8 no. 2
Type: Case Study
ISSN: 1544-9106

Article
Publication date: 4 July 2016

Steve W. Martinez

The purpose of this paper is to compare prices for fresh tomatoes, potatoes, peppers, and apples at direct-to-consumer sales outlets (e.g. farmers markets, roadside stands…

Abstract

Purpose

The purpose of this paper is to compare prices for fresh tomatoes, potatoes, peppers, and apples at direct-to-consumer sales outlets (e.g. farmers markets, roadside stands, on-farm stores) in the USA to grocery stores and supercenters, while controlling for other attributes.

Design/methodology/approach

The author estimates a hedonic regression model to determine price differences at direct sales outlets, grocery stores, and supercenters in various regions and seasons of the year. The analysis is conducted using 2006 Nielsen Homescan data. Other product and market attributes are also considered, along with characteristics of the household sample.

Findings

Prices at direct sales outlets are lower than grocery store prices throughout the year and across the USA. Prices at direct sales outlets for some product/location/season combinations were higher than or comparable to supercenter prices.

Research limitations/implications

Future research is needed to examine how price differences may vary across the various types of direct marketing outlets.

Originality/value

Few studies have examined price differences between direct sales outlets and conventional retail stores. No studies have used nationally representative data to analyze these price differences across produce type, season, and geographic areas.

Details

British Food Journal, vol. 118 no. 7
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 1 June 2006

Jason M. Carpenter and Marguerite Moore

To provide a general understanding of grocery consumers' retail format choice in the US marketplace.

19289

Abstract

Purpose

To provide a general understanding of grocery consumers' retail format choice in the US marketplace.

Design/methodology/approach

A random sample of US grocery consumers (N=454) was surveyed using a self‐administered questionnaire. Descriptive and inferential statistical techniques (regression, ANOVA) were used to evaluate the data.

Findings

Identifies demographic groups who frequent specific formats (specialty grocers, traditional supermarkets, supercenters, warehouse clubs, internet grocers) and examines store attributes (e.g. price competitiveness, product selection, and atmosphere) as drivers of format choice.

Research limitations/implications

The results included in this research were gathered and reported on an individual format basis. In order to capture consumer choices across a range of grocery retail formats, forcing respondents to compare formats was not initiated. In addition, data pertaining to whether consumers had access to each and every type of format in the study were not collected. Examination of how dimensions of consumer access limit or expand retail patronage behavior could also be highly beneficial to grocery retailers.

Practical implications

This research provides grocery retailers that operate within the USA specific knowledge of the attributes that consumers consider to be most important when making format choices (e.g. cleanliness, price competitiveness, product assortment, courtesy of personnel), and identifies the demographic characteristics of these consumers. The results suggest marketing strategy implications for grocery retailers that operate in the US market. As competition in the sector continues to evolve and consumer demographics change within the US market, understanding the consumer‐format choice linkage will be critical to retailer performance in the industry.

Originality/value

This exploratory study uses demographics and store attributes as a framework for profiling consumers by their ultimate retail format choice. The paper is unique because there are few similar empirical studies focused on the US grocery sector.

Details

International Journal of Retail & Distribution Management, vol. 34 no. 6
Type: Research Article
ISSN: 0959-0552

Keywords

Open Access
Article
Publication date: 10 January 2019

Hojin Jung, Kyoung-min Kwon and Gun Jea Yu

Using panel data on gasoline and grocery transactions in Korea, the purpose of this paper is to empirically explore the effect of a retail chain store’s establishment of on-site…

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Abstract

Purpose

Using panel data on gasoline and grocery transactions in Korea, the purpose of this paper is to empirically explore the effect of a retail chain store’s establishment of on-site fuel sales. The empirical analyses present strong empirical evidence that the sale of fuel had statistically and economically significant effect on retail store traffic and revenue in the short run. However, the effect did not remain significant in the longer run. To explain the dramatic decrease in the effect of the fuel sale, the authors consider the enhanced competition in the local gasoline retail industry and examine cross-sectional price variations at the station level. The results suggest that the increased competition led to the reduction in the price dispersion across stations and thereby to an increase in consumer welfare.

Design/methodology/approach

Using a linear specification that has traditionally been used to model retail chain data, the authors developed a series of difference-in-differences models. This technique is ideal for estimating the effect of a treatment in the presence of possible selection bias and has been widely employed in many social-science studies on policy intervention.

Findings

In a certain environment, introducing fuel sales did not increase retail chain store traffic or revenue in the long run, despite having statistically and economically significant effects in the short run. The results document empirical evidence of myopic management in a common marketing practice, which often leads to a negative impact on the firm value in the long run.

Research limitations/implications

The span of data and sample size were limited to meet the company’s data protection policy.

Practical implications

Considering that many of developed countries are characterized by a gasoline retail environment similar to that which is investigated in this paper, the authors believe that the implications of the results are particularly valid for practitioners and policy makers.

Social implications

The findings document empirical evidence of myopic management in a common marketing practice, which often leads to a negative impact on the firm value in the long run. Marketing researchers should make efforts in establishing metrics to help identify myopic management decision.

Originality/value

This paper addresses an interesting and practical issue related to the effects of the introduction of gasoline sales by a supercenter store on its store traffic.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 31 no. 1
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 8 February 2016

Amir Sasson and John Chandler Johnson

Direct digital manufacturing (DDM) is conceived of as either disrupting the entire manufacturing economy or merely enabling novel production. The purpose of this paper is to…

4842

Abstract

Purpose

Direct digital manufacturing (DDM) is conceived of as either disrupting the entire manufacturing economy or merely enabling novel production. The purpose of this paper is to introduce an alternative where DDM coexists with and complements traditional mass production. When multiple parts run across one manufacturing line, DDM can isolate variability associated with low volume part production and may be preferred to mass production despite being expensive. If DDM complements rather than cannibalizes mass production, this alters the understanding of who adopts DDM, the products built with DDM, and DDM’s long-term supply chain implications.

Design/methodology/approach

This invited paper explores a DDM rollout scenario and qualitatively assesses potential supply chain reconfigurations.

Findings

The analysis recognizes that existing manufacturers with heterogeneous bills-of-material may develop DDM capabilities to isolate disruptive, low-volume production from scalable mass production. Developing DDM competence and raw material scale advantages, these manufacturers become the locus of change in a manufacturing landscape increasingly characterized by multi-product DDM supercenters.

Originality/value

Extant research largely focusses on two potential reasons for DDM adoption: cost-per-unit and time-to-delivery comparisons. The authors explore a third driver: DDM’s capacity to isolate manufacturing variability attributable to low volume parts. Relative to the extant literature, this suggests a different DDM rollout, different adopters, and a different supply chain configuration. The authors identify mass manufacturing variability reduction as the mechanism through which DDM may be adopted. This adoption trajectory would eventually enable a supply chain transition in which spare parts inventory migrates from finished goods at proprietary facilities to raw materials at generalized DDM supercenters.

Details

International Journal of Physical Distribution & Logistics Management, vol. 46 no. 1
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 23 May 2024

Xiaodan Pan, Guang Li, Martin Dresner and Benny Mantin

As ecommerce becomes more prevalent, traditional brick-and-mortar retailers such as warehouse clubs (WCs) face the challenging task of maintaining and growing their customer base…

Abstract

Purpose

As ecommerce becomes more prevalent, traditional brick-and-mortar retailers such as warehouse clubs (WCs) face the challenging task of maintaining and growing their customer base. This study aims to unravel the combined impact of retail agglomeration and ecommerce activities on consumer foot traffic (also referred to as “footprint”) at WC stores, placing an emphasis on the locational strategies adopted by WCs in this evolving retail landscape.

Design/methodology/approach

Mobile-based customer foot traffic data for Costco, a major U.S. WC chain, is sourced for our analysis. We use Principal Component Analysis (PCA) to identify dimensions of general merchandise (GM) and narrow-range merchandise (NM) retail agglomeration. Two-stage least squares (2SLS) regressions are used to explore how the intensity of ecommerce activities and WC locational choices within retail agglomerations impact WC foot traffic.

Findings

Our analysis highlights a notable decline in WC store visits attributable to both GM and NM ecommerce activities, with GM ecommerce presenting a more significant competitive challenge to WCs. Regarding retail agglomerations, proximity to GM clusters that include a diverse range of supercenters, department stores, and club stores, is associated with an increase in WC customer visits within their vicinity. In contrast, the influence of NM agglomerations is mixed; clusters adjacent to grocery stores lead to higher WC customer traffic compared to those focused on other specialized stores. These findings underscore the strategic importance of location in mitigating the adverse effects of ecommerce competition. Additionally, our study uncovers intricate dynamics between GM and NM retail clusters and ecommerce activities, demonstrating varied impacts on WC customer footprint.

Research limitations/implications

Access to customer footprint data illustrates the potential of this data source for retail decision making and researchers. Our analysis is limited to one chain, notably Costco.

Practical implications

Our findings underscore the need for retailers to adeptly navigate the evolving retail landscape, including the confluence between physical and digital retail environments, to secure future success. In particular, our results emphasize the benefits of locating stores within mixed retail agglomerations and underline the need to consider the broader retail landscape in location decisions.

Social implications

The rise of ecommerce in the U.S. has reshaped consumer behavior and altered local shopping districts’ communal dynamics. This change may spur policy interventions to help physical stores compete with online retailers, emphasizing the importance of retail diversity and community-centric environments to sustain communal retail interactions amidst digital advancements.

Originality/value

The paper makes use of a unique dataset to provide a first assessment of the combined effects of retail agglomeration and ecommerce activities on consumer foot traffic for WC retailers. Thus, this paper provides insights into the impacts on consumer shopping behavior from the dynamic interactions between physical retail clusters and online shopping behaviors.

Details

International Journal of Physical Distribution & Logistics Management, vol. 54 no. 4
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 1 January 2006

Ray R. Serpkenci and Douglas J. Tigert

The purpose of this paper is to critically examine the underlying reasons for the recent slow‐down in the rate of sales growth for the world's largest retailer, its implications…

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Abstract

Purpose

The purpose of this paper is to critically examine the underlying reasons for the recent slow‐down in the rate of sales growth for the world's largest retailer, its implications for the economic valuation of this enterprise, and its future as a cohesive organization.

Design/methodology/approach

Wal‐Mart's comparative or same store sales growth over the last five years are contrasted with two of its key rivals Target and Costco, and the source and momentum of its core US growth record are examined over the last decade.

Findings

The results of the investigation indicate that Wal‐Mart has entered a new phase in its evolution as an enterprise, and the future rates of its growth will be limited to 3‐4 percent per annum in comp, and 10‐12 percent in total sales, excluding any acquisitions. This “new normal” is in part due to the extreme market share of Wal‐Mart in many of its trading areas, and the changing competitive landscape that was in no small part “created” in reaction to Wal‐Mart's own market power.

Originality/value

The analysis and its conclusions are of interest to retailing students and scholars who have been following the Wal‐Mart enterprise throughout the years, as well as retailing and merchandising analysts who have been struggling to define a new valuation model for the world's largest retail company. The paper is also of interest to retail market strategist as it illustrates that there are potential and natural limits to growth in all competitive arenas, and sources of new growth will always have to be sought in new product‐market spaces.

Details

International Journal of Retail & Distribution Management, vol. 34 no. 1
Type: Research Article
ISSN: 0959-0552

Keywords

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