Chief stores officer and retailer performance

Abstract

This research investigates the performance implications for retailers of having a chief stores officer (CSO) in the top management team (TMT). Using a matched sample consisting of 120 public retailers, we find that CSO presence is positively associated with 3 different performance metrics, namely, comparable store sales, profit per store, and Tobin's q. We also identify a partial mediating mechanism and find that CSO presence improves retailer performance through enhanced inventory turnover. Our results are robust to controlling for a series of TMT characteristics (such as chief marketing officer presence, chief operating officer presence, and TMT diversity), time-invariant unobservables at the retailer level, different measures of key variables, and alternate model specifications. As the first study that explores the phenomenon of CSO presence, our findings have important implications for public retailers on how to leverage marketing expertise in the TMT to improve performance.