An application of delphi and dea to performance efficiency assessment of retail stores in fashion industry

Abstract

Efficiency management is increasing its importance in the improvement of the chain sustainability. As such, this study aims to assess the performance efficiency of retail stores in fashion industry. The integrated approach of Delphi and DEA techniques was employed to address the performance efficiency assessment problem. The Delphi method was used to define the input and output variables, whereas the DEA was applied to evaluate the performance efficiency. The proposed approach was then applied into a fashion company in Hochiminh city of Vietnam to assess its retail chain performance. The results showed that labour, operational costs, size of store, number of customers, and sales revenue are considered as input and output variables in the retailing performance efficiency evaluation. Besides, it is also concluded in the study that most of efficiency retail stores are located in the dynamic districts and the efficient stores can be at any size. The proposed approach verifies its usefulness in the retailing sector. Therefore, it can be applied to the performance efficiency of retail stores in all industries. In terms of theoretical contribution, the input and output variables proposed in this study may devote to the literature in the concept and assessment of the performance efficiency. Moreover, comprehensive and multi-variable assessment of retailing sector may bring lots of benefits not only to the decision-making units but also the authorities or association with constraint funds.