Retail Performance Research Articles

Evaluation of Financial Performance with the Balanced Scorecard Approach in Retail Companies

This research assesses the financial performance of retail enterprises utilizing the Balanced Scorecard (BSC) methodology. The study used a quantitative methodology, gathering data from 75 retail firms via a Likert-scale questionnaire (1 to 5). The analysis use SPSS version 26, concentrating on four key Balanced Scorecard perspectives: financial, customer, internal business processes, and learning and growth. The findings indicate substantial positive relationships across the customer, internal processes, and learning and growth perspectives with financial success, with the customer viewpoint serving as the most robust predictor. The results indicate that retail firms can improve financial performance by prioritizing customer satisfaction, operational efficiency, and ongoing innovation. These insights offer significant recommendations for retail managers seeking to synchronize strategic objectives with operational performance.

A Study on the Impact of Social Media Platforms on Online Retail Performance

This study examines the impact of social media platforms (SMPs) on Vietnamese retailers' online retail performance by inheriting factors from previous research models including: (i) Model of factors affecting behavioral intention of using SMPs include factors such as Functional Expectancy, Hedonic Motivation, Habit, Perceived Relationship; (ii) Model of factors affecting online retail performance includes factors such as Social Media Marketing Passive Approach, Social Media Marketing Active Approach, Social Media Marketing Engagement Approaches, Electronic Word-of-Mouth. At the same time, this study adds other factors such as Platform Usability, User Autonomy, Influencer Marketing to establish a research model. This study results show that Hedonic Motivation, Habits, Use Proficiently, Perceived Relationship have a positive impact on Behavioral Intention. The study results also show that Behavioral Intention, Social Media Marketing Active Approach have a positive impact on Behavioral Intention, and Platform Usability has a negative impact on Retail Performance. These findings have some important implications. It is proposed that retailers, stakeholders, managers and SMPs provider identify the factors that affect SMPs on the online retail performance of Vietnamese retailers.

Assessing the impact of multichannel sales integration on the efficiency and competitiveness of Ukrainian retail in the context of digital commerce

One of the most significant changes the business world is currently experiencing is the progressive development and adoption of digital commerce. Taking into account the rapid development of web and Internet technologies, e-commerce is increasing volumes on a global scale and is being formed as a separate branch of the economy. Every year from 30 % to 70 % businesses of all countries (regardless of their level of development) are moving to the online environment. This is especially true for business entities that carry out trading activities. The object of the study is the process of integrating multichannel sales in retail trade in Ukraine, with a focus on its impact on the efficiency and competitiveness of enterprises in the market. The problem under consideration is to determine the most effective methods and strategies for implementing e-commerce in the Ukrainian economy, which is under the influence of martial law and other socio-economic factors. The main results of the study show that the integration of online and offline sales channels significantly increases business productivity. It was found that the use of omnichannel platforms can significantly improve customer interaction and increase sales. In particular, the analysis showed that properly integrated sales channels can increase the efficiency of enterprises by 20–30 %. These results can be explained by the high level of adaptability of Ukrainian companies to new technologies and their ability to quickly integrate digital platforms into their business processes. The study also confirmed that businesses that actively use omnichannel strategies achieve higher levels of efficiency and competitiveness. In practice, these results can be applied to the real-life conditions of Ukrainian retailers. This is especially true for small and medium-sized enterprises seeking to increase their market presence through the introduction of modern technologies and the integration of various sales channels. Using the data obtained will allow companies to optimise their business models, develop effective marketing campaigns and improve customer interaction. The findings can also be applied to the analysis of omnichannel retailing and digital commerce in other countries at different stages of retail development. This study also provides practical recommendations that may be useful for international companies and academics interested in improving retail performance.

Product personalization and brand retailer performance: The critical role of brand retailer‐upstream supplier control

AbstractBrand retailers are increasingly offering product personalization to accommodate the requests of individual customers. While prior research has examined product personalization from a customer's or a manufacturer's perspective, this study focuses on product personalization from a brand retailer's perspective. Under product personalization, brand retailers that outsource production to upstream suppliers face two significant challenges: product returns from downstream customers, and personalization costs charged by upstream suppliers. Employing an analysis of transaction data from an online women's wedding dress firm, this study finds that as product requests increase (i.e., more product features must be modified), personalization costs increase, but the likelihood of product returns decreases. Additionally, as time requests increase (i.e., delivery is more urgent), the likelihood of product returns increases. Furthermore, relationship‐specific process control exacerbates (i) the effect of product requests on personalization costs, and (ii) the effect of time requests on the likelihood of product returns. Finally, relationship‐specific outcome control and transaction‐specific control alleviate the impact of time requests on the likelihood of product returns while exacerbating the effect of product requests on personalization costs. The findings suggest that retailers can realize greater benefits from product personalization by selecting control mechanisms tailored to personalization requests.

Improving the sales process of profitable perishable goods: an inventory control strategy in a planned economy

PurposeThe purpose is to have appropriate planning for reducing costs during the procurement process and increasing profits during the sales period in a supply cycle at a retail store. To make the proposed model practical, efforts have been made to implement the existing constraints in a business environment and legal factors.Design/methodology/approachTo achieve the objectives of this research, a mixed-methods approach was employed. Initially, sales data was collected, and industry experts were consulted to identify key products. A mathematical model and a particle swarm optimization algorithm were utilized for simulation and optimization. Furthermore, time series forecasting techniques were employed to estimate demand accurately.FindingsThe findings of this research emphasize the importance of considering all factors affecting costs simultaneously when utilizing tools to reduce costs during the planning period. It was observed that certain tools, which individually have a favorable effect on costs, may collectively result in an increase in costs over the examined period. This highlights the need for a comprehensive and integrated approach to planning.Research limitations/implicationsThe business environment and legal factors in each country are among the factors that affect the performance of retailers, which has received less attention in previous research. This research aimed to address this gap by considering various factors. However, it is important to note that the proposed model has been investigated in research in hypermarkets and is applicable, but it cannot be generalized to other retailers.Originality/valueApplicability and consideration of new limitations in simulation along with consideration of the complete process from buying to selling goods.

The moderating role of servant leadership in the relationship between organizational structure and performance in fashion retailing

PurposeThis study aims to reveal how the organizational structure (vertical integration vs. franchising) of 308 stores in a Spanish fashion retail franchise chain affects their performance measured through two key performance indicators commonly used in this industry, namely, labor productivity and service quality ratings. We also appraise the moderating role played by the servant leadership of franchisees and managers of company-owned outlets to explore its influence on the relationship between organizational structure and store performance.Design/methodology/approachWe have used multivariate analyses to study the research questions, with a panel dataset of quarterly store-level data for the period January–December 2022.FindingsVertically-integrated stores record lower labor productivity than franchised ones. This impact is lower in stores run by individuals high in servant leadership than in those run by individuals low in it. Franchised outlets also record lower ratings in service quality than vertically-integrated stores, and this negative impact is weaker in stores run by individuals high in servant leadership.Originality/valueNothing has thus far been published on the moderating effect of servant leadership in the relationship between the organizational structure of different stores and their outcomes in franchise systems.

Leveraging Business Analytics for Strategic Merchandising Decisions in Fashion Retail

The application of business analytics to strategic merchandising decisions in the retail fashion industry is investigated in this study. Using data-driven insights has become essential for improving product assortments, pricing strategies, and inventory management as the business faces increasing complexity due to rapidly changing consumer preferences, seasonal demand changes, and more competition. The main goal of this study is to examine how fashion retailers may use business analytics to strengthen their merchandising plans, increase operational effectiveness, and increase profitability. The application of real-time inventory management systems, dynamic pricing models, and predictive analytics in the retail fashion industry is highlighted. This study attempts to provide actionable insights that enable retailers to make better-educated, data-centric decisions by addressing the opportunities and difficulties related to these sophisticated analytical tools. Despite its potential to improve retail operations, a major problem identified in this study is the underutilization of business analytics in merchandising decisions. To solve this issue, a qualitative research methodology was used to evaluate the current state of analytics integration in fashion retail using secondary data from industry reports, case studies, literature reviews, and other pertinent sources. The results show that using analytics has many benefits, including better demand forecasting, more accurate pricing, and more effective inventory management. However, the study also identifies barriers such as difficulties integrating data, the need for qualified staff, and moral dilemmas about the privacy of customer data. By shedding light on the efficient use of business analytics in the retail fashion industry, this study enhances theoretical knowledge and real-world implementation. It makes recommendations for removing adoption hurdles while highlighting the necessity of combining analytics with human knowledge and creativity. A better understanding of how data-driven decision-making affects merchandising procedures in fashion retail is one of the theoretical ramifications. Practically, the study suggests tactics for retailers to maximize their use of analytics to stay competitive in a market that is changing quickly. This study admits some limitations despite its insightful findings, most notably its reliance on secondary data that might not accurately represent the most recent advancements in technology or industry trends. Future studies should investigate how analytics affect consumer behavior and retail performance over the long run, as well as how small and medium-sized businesses may use these technologies efficiently.

Impact of Text and Image Information on Community Group Buying Performance: Empirical Evidence from Convenience Chain Stores

Although the importance of the content of a webpage in retail business performance is widely recognized, there are few empirical studies on the importance of text and image information on the homepage in retailer performance. How will consumers sift through this information? Does text and image information affect consumers’ purchasing behavior? Using a data set of a Chinese convenience chain store, we attempt to clarify the influence of the brand in the title, the emotional atmosphere on the picture, and the product images of the homepage on the picture on retail business performance by employing a panel fixed-effects negative binomial regression model and a panel fixed-effect regression. Our results show that mentioning the product brand in the event title and presenting clear product images significantly enhance retailer performance in online community group buying. It is noteworthy that emotional descriptions have a greater impact on retailer performance compared to rational descriptions. In practice, this study provides a new perspective and reference for online community group buying platforms to better attract consumers and maintain sustainable development.

Kualitas Produk, Kualitas Pelayanan dan Lokasi terhadap Keputusan Pembelian di Gramedia Mall Central Park

This research aims to evaluate retail performance using sales turnover as a benchmark, with a focus on Gramedia Mall Central Park, which is part of the Gramedia Store network. This research also aims to determine the influence of the variables studied, namely product quality, service quality and location on purchasing decisions. The research design uses a causal quantitative method using an instrument in the form of a questionnaire. This questionnaire was distributed to 105 respondents to obtain more accurate data analysis results. Data analysis was carried out using Smart-PLS (Partial Least Square) through testing the outer model, inner model and hypothesis testing. The research results show that product quality has a significant influence on purchasing decisions, as does service quality and location. The conclusion is that retail performance, especially Gramedia Mall Central Park, can be assessed from the development of sales turnover. Additionally, product quality, service quality, and location play an important role in shaping customer purchasing decisions. Therefore, attention to these factors can improve overall retail performance. Keywords: Product Quality, Service Quality, Purchasing Decisions, Location

Knowledge management and fashion retail performance: the moderating role of product complexity

PurposeThis study explores the role of knowledge management capabilities (KMCs) in enhancing competitive advantage and organisational performance in fashion retailing. Employing the resource-based view (RBV) and knowledge-based view (KBV) perspectives, it investigates the interplay between managing knowledge effectively and fashion products’ complexity. The goal is to provide new insights into optimising KMC for greater agility and success in the fashion retail industry.Design/methodology/approachThe study analysed survey data from 322 US fashion retail professionals using partial least squares structural equation modelling (PLS-SEM).Findings The results revealed that knowledge infrastructure capability enhanced both competitive advantage and organisational performance significantly. In contrast, knowledge process capability did not significantly affect competitive advantage, it improved organisational performance. Importantly, product complexity moderated the relationship between competitive advantage and organisational performance negatively.Practical implications This study underscores the necessity for retailers in the fashion industry to enhance their KMC to bolster competitive advantage and organisational performance, while it also acknowledges product complexity’s effect on these strategies. These insights offer actionable guidance for industry leaders to optimise knowledge management to navigate the rapidly evolving retail landscape.Originality/value This research offers novel insights into the interplay of product complexity and KMC in fashion retail and highlights the unique effects on competitive advantage and organisational performance valuable for both academia and industry.

Scale Development and Validation for Green Supply Chain Practices Impact on the Organized Retail Performance Evaluation in India: The ORGRSCALE

Green supply systems are helping several of the world's largest retailers boost profits. Green practices make firms more ecologically friendly. No research has considered all of the green supply chain management (GSCM) methods needed to develop a green supply chain in India's retail business. This investigation seeks to examine GSCM techniques and their effects on Indian organized retail. The ORGSCALE helps define GSCM in organized retail. The study generated items through literature reading and focus group talks. A total of 554 responses out of 1,800 survey responses were usable. The study indicated that GSCM methods affect organizational performance and environmental, economic and profitability. In Indian organized retail businesses, there is a lack of research on a reliable and valid scale to measure the performance impact of GSCM strategies. This study provides a measure to assess how GSCM practices affect Indian organized retail performance.

Tricks of the trade: Understanding and utilizing influencer tactics to improve retailer performance

Despite their impact on contemporary purchase decisions, academic research has given little attention to how social media influencers are impacting the retail ecosystem. This paper sets out to change this by contributing a better understanding of the impact of influencers on retailing activities. Using an explanatory sequential mixed method, we first conduct a survey of consumers’ use of influencers in their purchase decisions. Specifically, we map and compare consumer perceptions of how influencers and retailers perform on different retailing activities. To better understand the differences found, we then conduct focus groups that explore how consumers use and derive value from influencers in their purchase decisions. Our findings highlight how influencers create retail value, and that, in many cases, they are doing so better than retailers themselves. We summarize our findings in terms of learnings for retailers and discuss how influencers may even challenge our notion of retail. We provide strategies that retailers can employ to both work with and mitigate the effect of influencers and call for more research on influencers from a retail perspective.

Factors Affecting Supply Chain Integration in Omni-Channel Retailing

China’s retail industry has vigorously developed an omni-channel retail strategy in the last few years. However, quantitative research on this development remains relatively scarce. This article addresses this by building a theoretical model of the relationships between internal supply chain integration, external supply chain integration and financial performance in omni-channel retailing and then verifies it by using a structural equation model to analyze 356 omni-channel retailers. The results show that in the case of omni-channel retailers, the supply chain’s internal information integration has a significant positive impact on its external information integration and that the supply chain’s internal process and internal organization integration significantly positively impact its external process and external organization integration. And it also shows the supply chain’s external information integration and external organization integration positively impact omni-channel retailers’ financial performance. However, the supply chain’s external process integration is not found to have the same effect on financial performance. This study addresses a theoretical gap in the research on the impact of supply chain integration on firm performance in omni-channel retailing. In addition, it provides suggestions about how omni-channel strategies can be effectively implemented in China’s retail industry.

Configuration of factors influencing the performance of new retailers in the context of digital transformation—Based on the resource action perspective

AbstractFrom a resource action perspective, a configuration analysis was performed on 219 cases of new retailers using fuzzy set qualitative comparative analysis (fsQCA). The major study findings are as follows: (1) Digital transformation capacity and resource management behavior are essential conditions for high performance of new retailers. (2) Seven configurations drive high performance of new retailers. (3) Under a specific configuration, there are potential substitution relationships between digital culture and corporate reputation, “digital culture + human resources” and basic resources. Accordingly, new retailers should take measures such as establishing a three‐layer conditional combination chain to promote sustainable development.

Swimming With the Shark: The Effects of Platform Price Promotion and In-Platform Advertising on Third-Party Retailer Performance in Hybrid Online Retailing

Hybrid retailing is an emerging business model that melds traditional reselling with the newer platform approach. A platform owner resells directly to consumers (the reselling model) and also allows third-party retailers (TPRs) to sell on the platform for a commission (the platform model). Given the integral role of TPRs in the hybrid retailing ecosystem, research is imperative to understand how the strategic actions of the platform owner could affect the performance and activities of TPRs. Using a longitudinal dataset of an online platform that adopts a hybrid-retailing structure, the research proposes that the platform owner's strategies, specifically price promotion and in-platform advertising, can affect TPR sales performance directly (through positive spillover effects and negative crowding-out effects) and indirectly (by prompting TPRs to respond with their price promotion and in-platform advertising). Further, such direct and indirect effects depend on TPR size. The findings indicate significant direct effects: the platform owner's price promotion has a positive spillover effect on TPR sales, and more so for larger TPRs; the platform owner's in-platform advertising has a negative crowding-out effect on TPR sales and more so for smaller TPRs. The paper also reports indirect effects: TPRs tend to use price promotion to respond to both strategies of the platform owner, and TPR's price promotion also has positive consequences for TPR sales, and the effects are stronger for larger TPRs. Given the unique coopetition relationship between the platform owner and TPRs in the hybrid retailing context, this research provides firsthand empirical evidence that the platform owner's strategies can significantly affect TPR performance through direct and indirect effects, shows larger TPRs benefit the most from the platform owner's price promotion, while smaller TPRs suffer the most from the platform owner's in-platform advertising, and TPRs favor price promotion regardless what strategies the platform owner uses. These results indicate that both platform owners and policymakers should consider the differential implications for TPRs of different sizes in terms of the social welfare of the platform ecosystem.

Polluted cognition: The effect of air pollution on online purchasing behavior

As a meteorological factor, air pollution has emerged as a significant marketing strategy and has garnered extensive attention from the academic community. Contrary to the prevailing lay theory, which posits an increase in online purchases due to air pollution, this study illustrates a counterintuitive result that air pollution can serve as a negative marketing cue affecting consumers’ online purchasing behaviors. Grounded in cognitive load theory, we conducted secondary data analysis and three experimental studies to scrutinize the association between air pollution and online purchases of products unrelated to air pollution. Our findings establish that air pollution can adversely influence online purchasing behavior through the sequential mediation of cognitive state and emotion. Furthermore, this adverse effect can be mitigated with products with a colorful (vs. black-and-white) scheme or associated with a foreign (vs. domestic) brand. Our research not only addresses air pollution as a negative marketing cue in the context of purchasing air pollution-unrelated products online but also clarifies these counterintuitive findings through a serial psychological process. Moreover, this research expands our understanding of the magic effect of specific intrinsic (i.e., product color) and extrinsic (i.e., country-of-origin) product attributes. Accordingly, this research offers insights into marketing strategies that encompass a broader spectrum of products (i.e., air pollution-unrelated products) during periods of air pollution, thereby contributing to online retailing performance.

Using Content-Based Filtering and Apriori for Recommendation Systems in a Smart Shopping System

This research is motivated by the increasing significance of online shopping platforms and the challenges faced by users in locating products that align with their preferences and requirements, which can significantly influence the sales performance of online retailers. Consequently, the primary objective of this study is to design and implement a recommendation system capable of identifying suitable products and forecasting the purchase frequency for various product combinations, while also integrating this recommendation system with a smart shopping platform. To achieve this objective, the research employs machine learning techniques, specifically content-based filtering and the Apriori algorithm. Content-based filtering is utilized to analyze user preferences and behavioral patterns related to visited products, while the Apriori algorithm is employed to evaluate support and confidence values for item set combinations, thereby generating frequency values for future transactions involving product combinations. Additionally, a smart shopping system is developed and integrated, enhancing the shopping experience through smartphone applications and streamlining the payment process to facilitate seamless product purchases. The research methodology involves data collection pertaining to products and user preferences, followed by several testing involving a sample group of user respondents. The results demonstrate that the developed recommendation system effectively delivers relevant product recommendations based on user preferences, achieving a confidence value up to 98%. Furthermore, the smart shopping system proves capable of independently assisting users throughout the transaction process, thereby enhancing overall user experience and convenience.

Land prices, digital instruments and retail performance

PurposeThe results indicate that land prices exert pressure on retail performance (RP) and that the enhancement of digital means has a positive effect on RP. Additionally, digital instruments (DI) play a significant moderating role in the relationship between land prices and RP.Design/methodology/approachThis paper empirically examines the impact of land prices on RP using panel data from 239 Chinese cities between 2011 and 2022.FindingsThe use of lagged land prices as instrumental variables effectively alleviates endogeneity issues. Both two-stage least squares (2SLS) and generalized method of moments (GMM) regression results suggest that higher land prices are associated with improved RP. Further analysis reveals that the increase in land prices leads to scale effects, structural effects and technological effects, contributing to the enhancement of RP. The impact of land prices on RP becomes more pronounced in larger cities and economically developed regions experience the pressure from land prices earlier.Originality/valueThe findings of this study have practical implications for discussions on retail industry development, site selection for retail businesses and the establishment of sustainable mechanisms for expanding domestic demand.

The Impact of Climate Action on the Financial Performance of Food, Grocery, and Supermarket Retailers in the UK

We examined the impact of climate action on the financial performance of eleven food, grocery, and supermarket retailers listed on the London Stock Exchange from 2013 to 2022. Our findings reveal a positive association between the climate mitigation efforts of these businesses and financial performance, particularly in terms of returns on assets (ROA). Through Ordinary Least Squares estimation, we identified that climate action practices such as renewable energy usage, waste reduction, adoption of energy-efficient technologies, eco-friendly packaging, and optimized transportation are significantly associated with the ROA of UK-based food, grocery, and supermarket retailers. This study is significant as these retailers often have extensive operations and supply chains that contribute to greenhouse gas emissions. It demonstrates that engaging in climate mitigation measures can still lead to a positive ROA.

THE ROLE OF TECHNOLOGICAL INNOVATION IN MERCHANDISING

This academic paper aims to explore the role of technological innovation in merchandising and its impact on consumer behaviour and retail performance. The study uses a systematic review and meta-analysis approach to collect and analyse existing research articles, industry reports and case studies related to technological innovation in merchandising. A comprehensive search strategy is used to identify relevant literature sources and rigorous inclusion and exclusion criteria are applied to select high quality studies for analysis. The results of the systematic review and meta-analysis demonstrate the significant impact of technological innovation on various aspects of merchandising. These include improvements in inventory management, supply chain logistics, product presentation and customer engagement. In addition, the integration of technology into merchandising strategies was found to enhance the customer experience, increase sales conversion and improve overall retail performance. The findings of this study have practical implications for retailers and marketers seeking to leverage technological innovation in their merchandising strategies. It highlights the importance of embracing emerging technologies such as augmented reality, virtual reality, mobile applications and smart devices to create immersive and interactive shopping experiences. Retailers can use these technologies to improve product discovery, provide personalised recommendations and streamline the buying process. In addition, the study highlights the need for continuous adaptation and investment in technology to remain competitive in the evolving retail landscape. This research contributes to the existing body of knowledge by systematically synthesising the available evidence on the role of technological innovation in merchandising. It provides valuable insights into the potential benefits and challenges associated with the adoption of new technologies in the retail sector. This study serves as a valuable resource for academics, practitioners and policy makers interested in understanding and harnessing the power of technological innovation in merchandising.