Grocery Sector Research Articles

Location planning in charity retailing

PurposeThis paper seeks to evaluate the particular conditions informing locational decision making and related network planning in the charity retail sector. Its purpose is to identify both differences and commonalities with related debates that have been focussed very largely on the grocery sector and the superstore format. Its wider purpose is to contribute to the growing literature on charity retailing which has not considered this aspect of retail management in detail.Design/methodology/approachDetails the particularities of charity retailing locational decision making and network planning through a detailed case‐study consideration of a hospice charity's emerging retail store network.FindingsFinds that existing conceptual and practical considerations pertaining to locational decision making in retailing require a nuanced re‐revaluation in relation to the locational and network planning of charity retailers. Identifies the importance of supply chain (stock donators) and workforce factors together with the customer demand in informing locational decision making.Originality/valueDetailed academic consideration of location planning in the charity shop sector is absent in the literature. The paper addresses this.

Classifying, identifying and managing the service brand saboteur

This paper explores the management of brand saboteurs. The literature emphasises the role of the employee in delivering a service brand, and advocates the cultivation of brand ambassadors. Yet there exist saboteurs, employees who work against the brand, and there is a dearth of literature exploring this group. Through 20 in-depth interviews with mangers in the Irish banking and grocery sectors, the researchers identify three types of sabotage: deviance, underperformance, and service failure. A framework for identifying potential saboteurs is presented, together with methods to manage these employees. Notably, the paper identifies the criticality of saboteur management in a ‘job for life’ environment.

Data Needs for Consumer and Retail Firm Studies

Growing concentration in the retail grocery sector raises new economic questions that are difficult to answer with existing data sources. In part because of concentration in the retail data industry as well the fact that these data are not primarily collected for academic research purposes, currently available grocery-level datasets are extremely expensive, not properly randomized, and lack critical information. We discuss the increase in concentration at the retail level, concentration in data provision, data needs for a number of important research areas, and possible solutions.

E‐strategy in the UK retail grocery sector: a resource‐based analysis

PurposeThe purpose of this paper is to develop a better understanding of the expansion and development strategies used by retailers based in the UK for creating sustained competitive advantage in online grocery retailing.Design/methodology/approachThe objectives of this research were addressed by using a qualitative research strategy consisting of two specific methods of data collection: primary and secondary data collection.FindingsThe study suggests that retailers have tended to follow an incremental approach towards the development and expansion of their online service provision. This route to expansion involves the trialling of new ideas, keeping close watch on the competition while endeavouring to introduce innovative new services to capture consumer interest and deliver customer benefits.Research limitations/implicationsThe major limitation associated with this study is with respect to its heavy reliance on secondary sources. Consequently, assumptions have had to be made about the retailers' strategic thinking, as we were not able to secure any first hand accounts. However, in terms of the research implications, this study has both demonstrated the value of secondary data sources, and highlighted the benefits of adopting a resource‐based analysis.Practical implicationsThe findings highlight the importance of viewing an organisation's web‐based IT resources, as being only one element of its e‐commerce strategy.Originality/valueThis study makes a major contribution in two ways. First, it has mapped out the strategic pathways followed by the UK's five leading grocery retailers, in terms of their adoption of e‐commerce during the first complete decade of online retailing. Second, the paper has demonstrated how the resource‐based theory provides a very useful lens through which these pathways can be viewed and ultimately explained.

A Study on the Role of Demographic and Psychographic Dynamics in Food and Grocery Retailing

The Indian food and grocery retail sector is in the transformation mode for various reasons like strong macro-economic fundamentals and the changing socio-economic scene are driving what were once traditional and small scale retail outlets into organised retail formats aimed at catering to the evolving tastes and needs of the discerning consumers. But the very fast changing trends in food and eating habits of consumers have contributed immensely to the growth of ‘Western’ format typologies such as convenience stores, departmental stores, supermarkets, specialty stores and hypermarkets. This has happened for various conspicuous reasons namely demand and supply, socio-cultural, demographic, psychographic, economic and technology advancements like a large segment of young population, a rapidly expanding middle class, rising income levels, growing literacy, increasing number of working women and nuclear family structures which in turn have created an enormous demand for consumer goods and paved way for modern retail formats. The ever changing consumer's psychographic variables like activities, interests, opinions, values and lifestyles have also completely changed the formats namely convenience stores, supermarkets and hypermarkets etc. are the crystal clear reflections of tectonic shifts in demographic and psychographic changes of consumers. However, little is known about its actual influence and contribution to the organised retailing in food and grocery sector from an empirical analysis. Thus, understanding of demo-psychographic dynamics has become an imperative in designing modern food and grocery retail formats based on the purchase patterns. The study is purely based on primary data and necessary secondary data to reinforce the model. A total of 200 retail customers in Hyderabad actively participated in the survey. Findings, various managerial and marketing implications are extensively discussed.

Understanding price premium for grocery products: a conceptual model of customer‐based brand equity

PurposeThis paper seeks to develop a framework for understanding what drives customer‐based brand equity and price premium for grocery products.Design/methodology/approachThe paper reviews empirical studies made within the area of brand equity and studies of grocery products. It compares and analyses the results from an explorative and qualitative field study with previous research on brand equity and food quality.FindingsThe study finds that brand equity and price premium focusing on the grocery sector specifically highlights the role of uniqueness, together with the four traditionally basic dimensions of brand equity proposed: awareness, qualities, associations and loyalty. Relevant brand associations (origin, health, environment/animal friendliness, organisational associations and social image), and quality attributes (taste, odour, consistency/texture, appearance, function, packaging and ingredients) specific to groceries are identified and proposed for future measurement scales and model validating research.Practical implicationsThe development of a customer‐based brand equity model, that adds awareness, associations and loyalty to previous discussions on price and quality, brings to the table a more nuanced and multi‐faced tool for marketing of consumer packaged food.Originality/valueThe paper provides a framework for understanding, evaluating, measuring and managing brand equity for grocery products. As this paper presents the first conceptual brand equity framework for groceries, there is a contribution to research on food branding. Also, there is a contribution to the general field of brand equity as previous models have been very general.

Analysis of factory gate pricing in the UK grocery supply chain

PurposeThe paper aims to analyse the reasons behind the leadership shown by a case study retailer through the introduction of factory gate pricing (FGP) within the grocery sector. Further, there is an evaluation of the transport management techniques used to support FGP and the operational benefits gained.Design/methodology/approachThe research is based around a single case study of a UK grocery retailer, which has adopted FGP. A range of data sources has been collected during a project with the retailer. Techniques used include process mapping, interviews, workshops and company presentations.FindingsStrategically, the introduction of FGP has provided economies for the retailer strengthening its position in the market. Four main transport management techniques have been deployed to achieve this, generating reductions in transport and inventory costs while improving customer service levels. There are also some issues that need addressing, in relation to the need for a single point of control, who manages this point and the technological capabilities of transport providers.Research limitations/implicationsOnly a single case study is presented, and the research was carried out during the early phase of implementation.Practical implicationsFGP requires a certain degree of scale to be effective, and should complement current processes within a business. There is a need to manage relationship issues with suppliers and transport providers.Originality/valueThe paper presents a detailed case study of FGP within the grocery sector, which is more complex than previous application of the concept. The strategic rationale for pioneering FGP is considered, along with its tactical deployment and operational benefits. Concerns are also highlighted, to provide a balanced evaluation.

Radio frequency identification tagging

PurposeThe principal rationale for this study is to investigate the implications of the introduction of radio frequency identification (RFID) tagging on suppliers. Emphasis concerns the impact it is likely to have on suppliers to the UK grocery retail market.Design/methodology/approachPrimary research focuses on UK grocery suppliers' perception, with two specific research questions: “What are the implications of the introduction of RFID on suppliers?” and “How will these implications impact on the success of RFID in the future?” In‐depth interviews were conducted with a selection of different suppliers to gather attitudes towards RFID technology.FindingsRFID is highly topical, and currently at the forefront of many supply chain managers' minds. This study focuses on business‐to‐business implications of RFID to the FMCG/perishable food sectors, notably in comprehension of an under‐researched area of supplier perspective. This study concludes that in order to keep costs of application of RFID to a minimum, retailers and suppliers need to develop standardized but flexible systems. Implementation of RFID must take into account the context of supply chain power imbalance.Research limitations/implicationsReviewed literature suggests existing focus has been on the operational benefits to be gained from implementation of RF‐technology, and a good deal of work conducted has concerned the issue of consumer privacy. There has been one major investigation (in the UK), conducted by the Institute of Grocery Distribution concerning implications for the retailing industry; however, there is still a gap in the literature concerning attitudes of suppliers (notably with regard to the grocery sector). This study redresses this balance by conducting field work with suppliers.Practical implicationsTo prevent any future animosity retailers and suppliers must work together and costs need to be more equitably distributed. The FMCG/perishable food categories appear to offer a specific challenge to RFID introduction; however, future study is considered necessary to capture the diversity in these sectors.Originality/valueThe paper provides information of value to all those involved with methods of verification in the supply chain.

Market Orientation as Inter-firm Cooperation:: An International Study of the Grocery Sector

Previous research shows that a firm’s market orientation is influenced by external relationships, but few regard market orientation as an inter-firm phenomenon, i.e. as a part of cooperative inter-firm activities. The paper suggests inter-firm market orientation as an approach for its conceptualization. [Kohli, Ajay K. and Jaworski, Bernard J. (1990) Market orientation: The construct, research propositions and managerial implications. Journal of Marketing 54(April), 1–18] original components are adapted to the interorganizational setting and four dimensions, especially relevant in order to characterize inter-firm market orientation, are identified, including indicators that can be used to study them further. The results are based on qualitative case studies on supplier-retailer relationships in Sweden, Italy and the UK.

The internationalisation of voluntary groups: An exploratory analysis of selected value chain aspects

Research concerning retail internationalisation has almost always studied integrated companies or franchises. In many countries there are independent groups of retailers that control an important share of the market and are able to balance their market power between large multiples and independents. Some voluntary groups have also acquired relevant international dimensions, especially in the grocery sector. In this article, we concentrate our attention on three French non-food groups that have developed international operations; we study their international value chain activities to verify similarities and differences with other types of organization. Our results show that the international arena is not the preserve of multiples or franchises, but that particularities still exist concerning the internationalisation of independent retailers.

Integrating supply chain operations in the internet era

The internet's potential impact on supply chain operations is often approached in the literature in a quite generic way due to the complex nature of supply chains and the different levels of operations' integration. Drawing on existing research, this paper proposes an overall framework of supply chain integration and then attempts to provide a categorisation of the internet's role in the supply chain activities, providing insights from various sectors. The purpose of this paper is to describe and present the alternative ways that the internet impacts on the integration of supply chain operations, by comparing four different sectors: the automotive, the computer, the food and the grocery sector. The paper concludes that in the food, grocery and computer sector, internet's impact on supply chain operations has been quite poor, particularly forward integration, while it has been significant, in the backward integration of the automotive sector.

Wine retailing in Ireland: the diffusion of innovation

PurposeThe purpose of this paper is to investigate how new wines are introduced to and adopted by the consumer within the grocery retail sector in Ireland.Design/methodology/approachSemi‐structured interviews were carried out with eight wine buyers/distributors for the grocery retail sector in Ireland and two retail store managers. Interviews were conducted early in 2004. Observation of wine displays in stores was used to confirm marketing communications and promotional techniques employed.FindingsThe findings confirmed a market that is growing, especially in the grocery retail sector and at the lower end of the pricing points. Competition and a desire for growth create the demand for new products and all the elements of the marketing mix are used to support the market entry and adoption of the product by the consumer.Research limitations/implicationsThis is an exploratory study with a small sample size; further studies could be carried out to confirm the findings of this study or to replicate elsewhere in the UK or in the non‐wine‐producing countries of Europe.Practical implicationsThe findings highlight the strength of competition within the grocery sector and the continued use of discounting as a promotional strategy; this has implications for wine producers in the longer term. There is a need to educate the customer with a view to encouraging them to trade up.Originality/valueThe paper provides some insight into the distribution and marketing of wine in the grocery retail sector in Ireland.

Forecasting collaboration in the European grocery sector: Observations from a case study

Modeling-based research provides strong support for collaborative forecasting as a means of improving supply chain efficiency. Yet, despite positive attitudes towards collaboration and several pilot implementations undertaken in the beginning of the millennium, large-scale implementations of collaborative forecasting are still scarce. This article presents the results of an exploratory case study examining four collaboration projects involving four manufacturers and one retailer operating in the European grocery sector. By analyzing the positive and negative experiences of these companies and the results of their collaboration projects, factors that have an impact on the feasibility and value of forecasting collaboration are identified. A main finding is that many collaboration models appear to build on invalid assumptions concerning retailers’ forecasting needs, resources, and processes, as well as manufacturers’ capabilities to benefit from the demand or forecast information made available through collaboration.

Consumer demographics, store attributes, and retail format choice in the US grocery market

PurposeTo provide a general understanding of grocery consumers' retail format choice in the US marketplace.Design/methodology/approachA 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.FindingsIdentifies 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/implicationsThe 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 implicationsThis 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/valueThis 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.

An exploratory study of SME local sourcing and supplier development in the grocery retail sector

PurposeThe overall aim of this research was to undertake an exploratory investigation to gain insights into attitudes and perceptions of supplier development and local sourcing programmes in the UK grocery retail sector.Design/methodology/approachSince this research is exploratory in nature, a qualitative approach to data collection was undertaken using semi‐structured in‐depth interviews.FindingsRetailers do seem to be undertaking supplier development as defined in the literature but the data collected highlights some of the difficulties experienced by all suppliers in supporting grocery retailer category management and branding strategies. From this, local sourcing also implies the involvement of the micro‐enterprise producer. This has the potential for greater levels of power and trust imbalance.Research limitations/implicationsThe main research limitation was the small sample size. However, the research was exploratory and the sample was essentially convenience based. This resulted in over‐representation by the larger SME producer. The findings can be enhanced with further qualitative research focusing on the micro‐enterprise supplier.Originality/valueThe paper offers an insight into the debate on SME supplier development and local sourcing by providing empirical evidence of the current shape and scope of the various initiatives in the UK grocery sector.

Category management: a new approach for fashion marketing?

As a supply chain management initiative, category management has to date been the almost exclusive preserve of the grocery sector and, within that sector, limited to food categories. This paper proposes that the fashion industry might usefully follow the grocery industry's lead and implement category management. A comprehensive review of the literature on category management highlights the opportunity for fashion marketing to consider the potential of category management, and the specific research gaps. In operationalising the subsequent research objectives, the paper reports the results of exploratory, in‐depth consumer research for a particular category of intimate apparel. The managerial implications of these findings are then discussed in the context of the established eight‐step category management process. The overall tentative conclusion of this study is that as a consumer‐oriented joint planning tool, category management offers retailer‐supplier partnerships in the fashion industry an important adjunct to the industry's quick response methods. The paper closes with an agenda for future research.

Supply Chain Management as a Competitive Advantage in the Spanish Grocery Sector

Adversarial relationships have long dominated business relationships, but Supply Chain Management (SCM) entails a new perspective. SCM requires a movement away from arms-length relationships toward partnership style relations. SCM involves integration, co-ordination and collaboration across organisations and throughout the supply chain. It means that SCM requires internal (intraorganisational) and external (interorganisational) integration. This paper analyses the relationship between internal and external integration processes, their effect on firms' performance and their contribution to the achievement of a competitive advantage. Performance improvements are analysed through costs, stock out and lead time reductions. And, the achievement of a better competitive position is measured by comparing the firm's performance with its competitors' performance. To analyse this, an empirical study has been conducted in the Spanish grocery sector.

Supply Chain Management Implementation in the Spanish Grocery Sector: An Exploratory Study

This paper explores the integration process that firms follow to implement Supply Chain Management (SCM) and the main barriers and benefits related to this strategy. This study has been inspired in the SCM literature, especially in the logistics integration model by Stevens [1]. Due to the exploratory nature of this paper and the need to obtain an in depth knowledge of the SCM development in the Spanish grocery sector, we used the case study methodology. A multiple case study analysis based on interviews with leading manufacturers and retailers was conducted. The results of this analysis suggest that firms seem to follow the integration process proposed by Stevens, integrating internally first, and then, extending this integration to other supply chain members. The cases also show that Spanish manufacturers, in general, seem to have a higher level of SCM development than Spanish retailers. Regarding the benefits that SCM can bring, most of the companies identify the general objectives of cost and stock reductions and service improvements. However, with respect to the barriers found in its implementation, retailers and manufacturers are not coincident: manufacturers seem to see more barriers with respect to aspects related to the other party, such as distrust and a lack of culture of sharing information, while retailers find as main barriers the need of a know-how, the company culture and the history and habits.

Unveiling Enablers and Inhibitors of Collaborative Planning

As part of organizations' drive towards supply chain integration. Collaborative Planning (CP) emerged in the late 1990s. Lack of visibility of demand (in the form of point of sale data) and inventory holding status across the supply chain, together with adversarial relationships between trading partners remain as significant barriers to the goal of supply chain integration. Collaborative planning, originating from the consumer packaged goods industry, is an approach that promises to overcome these barriers, and seeks through joint planning and development of a clearer understanding of the dynamics of the supply chain replenishment process to deliver some of the promised benefits of actual supply chain integration. A case study of six organizations across three tiers of a supply chain in the UK grocery sector identifies many critical enablers and inhibitors at strategic, tactical and operational levels, both between and within the case study organizations.

Supply Chain Management implementation in the Spanish grocery sector: an exploratory study

This paper explores the integration process that firms follow to implement Supply Chain Management (SCM) and the main barriers and benefits related to this strategy. This study has been inspired in the SCM literature, especially in the logistics integration model by Stevens. Due to the exploratory nature of this paper and the need to obtain an in depth knowledge of the SCM development in the Spanish grocery sector, the case study methodology was used. A multiple case study analysis based on interviews with leading manufacturers and retailers was conducted. The results of this analysis suggest that firms seem to follow the integration process proposed by Stevens, integrating internally first, and then, extending this integration to other supply chain members.