Cumulative impact of category management on small retailers

Abstract

Purpose – The purpose of this paper is to determine the performance impact for small, local retailers by the means of category management (CM) practice and implementation. The authors utilized survey methodology to investigate both the immediate and cumulative impact of CM on several regional retailers. Design/methodology/approach – The results suggest CM practices have a positive impact on the performance of small, local retailers. category captain (CC) and minor supplier (MS) performances are also positively related to CM execution. CM practices, however, do not have a direct significant influence on MS performance, but rather have a cumulative impact through CC and CM performances. Practical implications – Small retailers should implement CM principles informally to match with their specific limited resources and management structures. Additionally, results from this study also suggest that local retailers may benefit from leveraging suppliers through tighter relationships encompassed within CM. Originality/value – This research is the first to empirically test the immediate and cumulative impacts of CM practices on small, local retailers, and to determine their implications. Cumulatively, small retailers have a large impact on developed economies with a particularly large impact on employment, therefore major retail initiatives such as CM merit scholarly attention.