Retail Department Stores Research Articles

Collective financing among Chinese entrepreneurs and department store retailing in China

Chinese entrepreneurship in department store retailing differed from that seen in other emerging economies before 1940. Rather than the leading examples of the format being owned by advanced economy firms, in China a small group of Cantonese entrepreneurs established what became known as the ‘Big Four’ department stores in Shanghai. By 1940 the ‘Big Four’ department stores were among the most famous stores in China, and among the biggest businesses in China. None of these Chinese entrepreneurs had any prior experience in department store retailing. Rather this article explains how their success in department store retailing was dependent on a business model that enabled these Chinese entrepreneurs to act as informal investment bankers (or ‘shadow’ banks) for the thousands of overseas Chinese wanting to invest surplus savings in mainland China, so creating large indigenous business groups.

Off-price versus price-off

Purpose – The purpose of this paper is to better understand the unique competitive positioning characteristics of off-price retailers and how they compare to other types of retailers. The authors compare off-price and upscale off-price retailers with four major formats of retailers: first, discount department store/warehouse club retailers; second, moderate department store retailers; third, department store retailers; and finally, specialty department store retailers. Design/methodology/approach – The paper employs a representative sample that was randomly drawn from four primary metropolitan cities in the USA. The data were collected using telephone interviews by a prominent, marketing research firm. A series of discriminant analyses were conducted to examine the data. Findings – The findings of the paper indicate that the off-price formats were consistently positioned at extreme points along the price/value continuum, signifying the strongest value-orientation among the other retail formats. The authors also found that while the upscale off-price format followed the specialty department stores in terms of fashion. The results point to an important disadvantage of the off-price format – although strong on price/value, they often fall short on fashion and many other store attributes that may be important to luxury-oriented customers. Research limitations/implications – The paper employed a sample from several cities collected using a telephone interview methodology within the US. Due to these limitations, the findings of this paper may be hampered by this methodology and not generalize to regions outside of the US. Future research should examine how the demise of most of the upscale off-price retailers and growth of flash web sites have changed the competitive structure of retailing. Practical implications – The results demonstrate that the positioning of the off-price retail format is unique from other formats. The retail formats occupy distinct positions. The off-price retail format is strongly associated with the price/value position but only moderately fashionable to customers, especially when compared with the department and specialty department store formats. In contrast, the upscale off-price format, while also strongly positioned along the price/value continuum, is considered much more fashionable than the off-price retail format. In fact, the upscale off-price retail format only trails the specialty department store format in terms of fashion. Originality/value – The unique characteristics of the off-price retail format and growing interest from upscale department stores underscores the need for a comprehensive understanding of the motives of the off-price shopper. This paper provides retailers with a more complete understanding of the store attributes that differentiate the off-price retail format from other major retail store formats. The overall objective of this study is to offer a comprehensive view of the positioning of off-price retailers compared with many alternative retail formats.

Consumers' evaluation of the quality of service in department stores: evidence from a case study of Hyperstar and Shahrvand in Iran

The objective is to compare shoppers’ evaluation of retail service quality in the context of a developing country that has conventional market configuration, specifically Iran. We compare two department stores: Shahrvand, a domestic department store and its international competitor Hyperstar. A sample of 320 shoppers in Tehran was used to test our hypotheses. Confirmatory factor analysis (CFA) was exercised for hierarchical cross-validation of service quality dimensions. Furthermore, shopper’s evaluation of service quality between two stores was assessed using independent T-test method. The finding shows that the RSQS structure is a good fit in the Iran retail setting. Perusing five dimensions are appeared to be exceptionally beneficent to assess the quality of retail service, and the results indicate the significant effect of customer-presumed policy reliability and physical dimensions-on retail department store success. We also found personal interaction and problem solving less important for shoppers. Interestingly, it was found that Hyperstar is salient, not only in terms of policy and reliability, but also in terms of its physical aspect, personal interaction, and problem solving.

Department Store Cross-Shoppers

<span>With todays retail department store competitiveness, it is necessary to examine department store cross-shoppers of three department store types: traditional, national chain, and discount. Regular shoppers of one type as well as two or more department store types are examined. The multi-item constructs consist of behaviors and attitudes of these different department store shoppers. The needs of cross-shoppers are dramatically different from the needs of core department store customers suggesting the folly of looking only to the needs of their store loyal customers for the structuring of store strategy.</span>

Understanding Governance Decisions in a Partially Integrated Channel: A Contingent Alignment Framework

This article examines governance decisions within an emerging and increasingly common form of channel: the partially integrated channel (PIC). The PIC is defined as a single vertical channel in which both market governance and hierarchical governance exist (i.e., the employees of one channel member work on a full-time basis at an exchange partner's facilities, performing functions that the exchange partner traditionally performs). Building on the transaction cost analysis and governance value analysis literature streams, the authors examine ongoing governance decisions within the PIC. Data were collected in the fashion apparel market of South Korea using multisource, reciprocally matched data in which a manufacturer's directly employed sales force is deployed at department store retailers as the sole frontline employees for their brand. The authors find that brand reputation, downstream market uncertainty, and sales force performance ambiguity influence manufacturer control over sales operations and manufacturer flexibility with retailers in unique ways. The authors discuss implications of this work for theory and practice.

Organisational rigidities and marketing theory: examining the US department store c.1910–1965

By analysing the US department store during the period c.1910–1965, this article deepens our understanding of the nature of the transition to phases of ‘maturity’ and ‘decline’ that are fundamental to models of retail change (retail wheel, retail life cycle). By employing a close reading of key marketing and management writing of the period, it finds that ‘lock-in’ to an organisational structure associated with a single downtown store posed significant obstacles to suburban branched expansion. Only partial organisational centralisation occurred with the formation of holding companies in the 1920s, which contrasted with chains of general-merchandise and some department store retailers that were efficiently structured and better able to exploit suburban growth. When major department store companies finally embraced branched expansion, they were forced to significantly revise their operational structures.

The Use Of Financial And Nonfinancial Information For Evaluating Performance: An Attributional Perspective

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt; tab-stops: .5in;"><span style="font-family: "CG Times","serif";"><span style="font-size: x-small;">This study utilized attribution theory to understand how executives use financial and nonfinancial information to evaluate departmental and managerial performance. An experiment was conducted in which 54 executives of a large retail department store were asked to evaluate the performance of a hypothetical retail selling department and the performance of its manager. The execu­tives responded to 51 cases, each of which contained a different combination of values for eight performance cues. Four of the cues were financial and four of the cues were nonfinancial. Separate main-effects linear models were used to analyze how the subjects used the cues to arrive at judgments about departmental and managerial performance.<span style="mso-spacerun: yes;">  </span>The results supported a number of predictions based on attribution theory. First, the evaluations of performance were characterized by bounded rationality, as most subjects used one or more, but not all, of the cues to attribute blame or credit for performance outcomes. Second, the evaluations of performance relied on the cues in a way which indicated the existence of causal links between the performance outcomes reflected in the financial and nonfinancial cues, and managerial control and responsibility for those outcomes. Third, the financial and nonfinancial cues were used in distinctly different ways depending on whether the performance of the department or its manager was being evaluated. Fourth, the cues were used differently to evaluate managerial performance by experts and non-experts in that area. And finally, there was limited self-awareness of the relative importance of different types of information when making causal inferences.<span style="mso-spacerun: yes;">  </span></span></span></p>

Multi-Agent Simulation and Management Practices

Intelligent agents offer a new and exciting way of understanding the world of work. Agent-Based Simulation (ABS), one way of using intelligent agents, carries great potential for progressing our understanding of management practices and how they link to retail performance. We have developed simulation models based on research by a multi-disciplinary team of economists, work psychologists and computer scientists. We will discuss our experiences of implementing these concepts working with a well-known retail department store. There is no doubt that management practices are linked to the performance of an organisation (Reynolds et al., 2005; Wall & Wood, 2005). Best practices have been developed, but when it comes down to the actual application of these guidelines considerable ambiguity remains regarding their effectiveness within particular contexts (Siebers et al., forthcoming a). Most Operational Research (OR) methods can only be used as analysis tools once management practices have been implemented. Often they are not very useful for giving answers to speculative 'what-if' questions, particularly when one is interested in the development of the system over time rather than just the state of the system at a certain point in time. Simulation can be used to analyse the operation of dynamic and stochastic systems. ABS is particularly useful when complex interactions between system entities exist, such as autonomous decision making or negotiation. In an ABS model the researcher explicitly describes the decision process of simulated actors at the micro level. Structures emerge at the macro level as a result of the actions of the agents and their interactions with other agents and the environment. 3 We will show how ABS experiments can deal with testing and optimising management practices such as training, empowerment or teamwork. Hence, questions such as "will staff setting their own break times improve performance?" can be investigated.

Exploring consumers' preferences with regard to department and specialist food stores

AbstractConsumers' lifestyle changes and striving towards better time management have resulted in the greater choice they are offered with regard to store formats. Therefore, this study was undertaken to identify the factors that influence consumers in their patronage of a particular store format and to categorize department and specialist food store consumers according to their preferences in store layout and product range in a South African context. A qualitative research approach was used and data were collected using semi‐structured interviews with open‐ended questions. Purposive sampling recruited participants shopping for food in a department store in Johannesburg. Forty semi‐structured interviews were conducted before data saturation was reached. Store‐related factors such as store location, appearance and hygiene, service quality, convenience of trading hours, and consistency in store layout predominantly influenced participants in their patronage of a specific store format. Furthermore, product‐related factors such as quality, price, product range and convenient packaging enhanced consumers' store preference. Department store consumers were orientated towards one‐stop shopping and time‐saving strategies, while specialist food consumers were focused on food shopping and the trading hours of the store. Although similarities in participants' preferences with regard to department and specialist food store were found, different preferences were found regarding the placement of specific items within the store. Participants had similar preferences regarding the product range of a food store. However, department store participants emphasized the provision of convenience food and non‐food items. The findings of this study are valuable in providing department and specialist food store retailers with guideline recommendations regarding store layout and product range in order to effectively respond to the needs and preferences of consumers within an emerging economy.

Optimal Paths And Costs Of Adjustment In Dynamic DEA Models: With Application To Chilean Department Stores

In this paper we propose a range of dynamic data envelopment analysis (DEA) models which allow information on costs of adjustment to be incorporated into the DEA framework. We first specify a basic dynamic DEA model predicated on a number of simplifying assumptions. We then outline a number of extensions to this model to accommodate asymmetric adjustment costs, non-static output quantities, non-static input prices, and non-static costs of adjustment, technological change, quasi-fixed inputs and investment budget constraints. The new dynamic DEA models provide valuable extra information relative to the standard static DEA models—they identify an optimal path of adjustment for the input quantities, and provide a measure of the potential cost savings that result from recognising the costs of adjusting input quantities towards the optimal point. The new models are illustrated using data relating to a chain of 35 retail department stores in Chile. The empirical results illustrate the wealth of information that can be derived from these models, and clearly show that static models overstate potential cost savings when adjustment costs are non-zero.

The Current Status of Women in US Department Store Retailing: 2004

This study replicates the work of Gable, Fiorito and Topol (1994) that examined the status of women in managerial ranks of department store organizations. Women now constitute 67% of all lower-level management positions, approximately 45% of middle-level positions, and 24% of those positions at upper levels. While some progress has been made since the 1994 study, females are not close to parity with males at the highest level positions. Further, a comparison was made of the gender composition of the boards of directors of the 25 largest industrial organizations (in annual sales volume) with that of the 25 department store organizations.

Fashion and commerce: a historical perspective on Australian fashion retailing 1880‐1920

Fashion retailing has evolved in response to opportunities and market pressures. It has been both reactive and proactive. For example, Palmer, in 2001, analyses what might be called a partnership between Canadian department stores and European couture houses in the 1950s. Her work affords a rare overview of retailing's fit with fashion design and commercial delivery systems, and is a point of departure for closely examining an earlier period (1880‐1920) in Australia. The current paper studies the leading role that department stores played in shaping the Australian fashion scene and the marketing techniques they used. A context, period and country, where a set of major retailers formed the predominant influence on fashion trends, and styles and diffusion throughout the community have been identified. Findings suggest that for the 1880‐1920 period the department store retailers were market‐driving rather than simply market‐driven, implying a more proactive and innovative role for the department stores.

Japanese Retailing Through the 1990s: Retailer Performance in a Decade of Slow Growth

The development of Japanese retailing through the 1990s is used to illustrate the applicability of a Europe-based growth model in a recessionary market. Through the 1990s the Japanese economy suffered low growth and periods of recession, after strong growth through the 1980s. Retail sales in the 1990s increased only slightly whilst floor-space developments begun in the 1980s and the result of retailer expansion strategies generated increased retail capacity. Large retailers pursued strategies of opening more stores in order to generate sales, but this proved disastrous and resulted in lower productivity, high levels of debt, low levels of innovation and consequential need to restructure. General merchandise and department-store retailers were slow to see the need to restructure and innovate. In contrast, three groups of retailers obtained competitive advantages from the recession, namely retailers who responded quickly to emergent market segments, foreign retailers and e-retailers. The strategic responses to recession and the reasons behind these responses are illustrated and suggestions made on how the experiences of the 1990s will affect development in the early 2000s. Implications of the retailers' behaviour are indicated for retailer strategies, the restructuring of the sector and for research on strategy and structural change.

An examination of the relationship between service quality, customer satisfaction, and store loyalty

Using a national random telephone survey of 542 shoppers, examines the relationship between service quality, customer satisfaction, and store loyalty within the retail department store context. Tests two complementary models that examine this interrelationship. Empirically examines the relative attitude construct put forth by Dick and Basu. The results indicate that service quality influences relative attitude and satisfaction with department stores. Satisfaction influences relative attitude, repurchase, and recommendation but has no direct effect on store loyalty. Fostering favorable relative attitude and getting customers to recommend the product or service holds key to fostering store loyalty. Results also indicate support for Oliver’s four‐stage cognitive‐affective‐conative‐action model of loyalty.

A Work Program for Auditing a CICS Information-Processing Application

Customer Information Control System (CICS) is in its fifth decade of continued use. It appears to be the oldest transac-tion-oriented, telecommunication, information-processing ap-plication product in operation. CICS was developed in the mid-1950s by IBM for the May Co. retail department store opera-tion in the Los Angeles area. CICS was used originally, as the application title suggests, to control the handling and trans-mission of the records of the stores' customer credit sales transactions between the stores and a central processing site. CICS can support host mainframe computers at several geo-graphically dispersed sites. Since that time, CICS has been used in a wide variety of other nonretailing environments.

Decision making using multiple models

Many real world business situations require classification decisions that must often be made on the basis of judgment and past performance. In this paper, we propose a decision framework that combines multiple models or techniques in a complementary fashion to provide input to managers who make such decisions on a routine basis. We illustrate the framework by specifically using five different classification techniques – neural networks, discriminant analysis, quadratic discriminant analysis (QDA), k-nearest neighbor (KNN), and multinomial logistic regression analysis (MNL). Application of the decision framework to an actual retail department store data shows that it is most useful in those cases where uncertainty is high and a priori classification cannot be made with a high degree of reliability. The proposed framework thus enhances the value of exception reporting, and provides managers additional insights into the phenomenon being studied.

Design Concept and Function as a Criticism Framework for Retail Space

Objective It is important for interior design practitioners and students to have systematic methods developed to critique interiors. Further, it is important to critique significant spaces, defined here as those that are designed by interior designers and are used by large numbers of people. Research Design A framework for the systematic criticism of retail spaces was developed and used in analysis of the Robinsons–May department store in Glendale, California. Concept and function are the two components of retail store design that were used to form the basis of the criticism framework. This framework guides the critique of the space, sets parameters for analysis, and allows for replication. Analysis Six categories were identified as essential to design concept and function: (a) access from the exterior, (b) the space plan, (c) department identity, jd) visual merchandising, je) fixturing, and (fj codes. These categories are discussed as they relate to concept and function. Key Findings At the Robinsons–May store design concept is supported by the use of form and color as dominant elements within a stylized classical design concept in the space overall, although they are not entirely consistent throughout departments and across all floors. Some unique applications of marketing strategies in department identity, visual merchandising, and fixturing also support the concept. Functionally, the circulation patterns and adjacencies are well conceived; however, there is an absence of adequate accent lighting throughout the space. Conclusion The framework supported the critique of the retail space. Other components could be added to a general framework such as this one that focused on design concept and function. The critique of spaces used by large numbers of people (such as retail department stores) and designed by interior design firms is an important contribution to interior design education and practice.

Organizational differences in recruiting older department store workers in the US

Department store retailers need a reliable and stable labour resource, particularly for entry‐level positions. Older workers may be an alternative labour pool for these positions. The goal of this study is to learn whether department store attributes and recruitment representative characteristics affect the use of formal and informal recruiting strategies in developing an older applicant pool. The findings indicate that small sales volume stores used both formal and informal recruiting practices significantly less than medium or large stores. Further, younger respondents and human resource support staff relied upon informal methods more than formal ones. Finally, highly educated recruiting representatives used formal recruiting methods more than those with less education.

The current status of women in department store retailing: 1993

This study replicates the work of Gable, Gillespie and Topol (1984) that examined women 's status in the managerial ranks of department store retailing. During the past decade, women have made significant gains at all levels of management. They constitute 67 percent of all lower-level management positions, 41 percent of all middle-levels positions, and 21 percent of all upper-level positions. While progress has been made, women are not close to parity with men at the highest level positions in department store retailing.

Transmission and reflection characteristics at concrete block walls in the UHF bands proposed for future PCS

Buildings such as warehouses, supermarkets and retail department stores typically have walls constructed from concrete (cinder) blocks. The web and void design of the individual blocks and their arrangement within a wall creates a periodic structure, which exhibits frequency dependent transmission and reflections characteristics in the UHF bands proposed for future Personal Communication Systems (PCS). For higher frequencies, higher order Floquet modes excited at the periodic structure can propagate away from the wall, suggesting that significant power can be carried away from the wall in non-specular directions. Indoor propagation prediction models must consider the non-specular paths exited by walls with a periodic nature in order to account for all of the scattered power. In this work, plane wave reflection and transmission characteristics for typical concrete block walls are examined theoretically and experimentally to determine the frequency dependence of the specularly and non-specularly transmitted and reflected fields. >