Retail Research Research Articles

Conceptual Framework for Order Fulfillment and Delivery in Online Grocery Retailing

Purpose: For traditional grocery retailers, the growing importance of online sales means creating new logistics models for omni-channel (OC) management. Due to these transformational changes, retail research and practice are lacking a comprehensive view on integrated fulfilment and distribution concepts for home and store deliveries as they have evolved recently. This paper develops a planning framework for last mile order fulfilment in OC grocery retailing and discusses the advantages and disadvantages of different design concepts. Design/methodology/approach: The findings were developed and evaluated by means of explorative interviews with grocery retail and logistics experts. Additionally, key literature on last mile order fulfilment and retail supply chain management was reviewed to supplement the integrated OC grocery operations planning framework. Findings: OC logistics planning can be structured into back-end fulfilment (e.g. warehouse and instore picking) and last mile distribution concepts (e.g. attended and unattended home delivery). The design choices depend on country specifics (e.g. population density), retailer specifics (e.g. capability for cross-channel process integration) and customer behaviour (e.g. possibility of unattended home delivery). The application areas and their contextual factors are discussed for each design parameter. Practical implications: The last mile fulfilment options identified can be applied to pinpoint the necessary steps for further optimizing OC integration. Grocers can gain insights into current fulfilment concepts used in different contexts. This architecture also forms the foundation for further research on decision support systems. Originality/value: The coherent planning framework summarizes the general design options for last mile order fulfilment arising from new requirements for OC fulfilment. Classification: Research Paper

Bitcoin – payment method or fraud prevention tool?

It is no secret that e-commerce is the fastest growing retail sector in Europe. Tales of woe for the traditional high street have been on front pages throughout the land since the infamous demise of Woolworths back in 2009. The Centre for Retail Research predicts that online sales in the UK, Germany, France, Sweden, the Netherlands, Italy, Poland and Spain are expected to grow from £132.05bn in 2014 to £156.67bn this year, reaching an anticipated £185.44bn by 2016. 1

From Multi-Channel Retailing to Omni-Channel Retailing: Introduction to the Special Issue on Multi-Channel Retailing

The world of retailing has changed dramatically in the past decade. The advent of the online channel and new additional digital channels such as mobile channels and social media have changed retail business models, the execution of the retail mix, and shopper behavior. Whereas multi-channel was in vogue in the last decade in retailing, we now observe a move to so-called omni-channel retailing. Omni-channel retailing is taking a broader perspective on channels and how shoppers are influenced and move through channels in their search and buying process. We discuss this development conceptually and subsequently discuss existing research in this multi-channel retailing. We also introduce the articles in this special issue on multi-channel retailing and position these articles in the new omni-channel movement. We end with putting forward a research agenda to further guide future research in this area.

Using GIS for Retail Location Assessment at Jeddah City

GIS software has different useful tools that can be used for sites, demographic and competitive analysis. These tools enable retail and market researchers to find solutions related to many retail planning issues. The aim of this paper is to use Geographical Information Systems (GIS) for retail location assessment of two retail centers called Al-Dawly and Al-Mahmal centers located at Jeddah city, Saudi Arabia. The first part of the paper presents a review about retail centers classification and about GIS applications in retail planning field. The second part of the paper discuss the outputs of the created application which include a- defining retail catchment area, b- building retail demand profile, and c- analyzing retail catchment area. The results of this application can be used by retail planners for evaluating retail centers location and for identifying the extent of retail market

A store-oriented approach to determine order packaging quantities in grocery retailing

Instore operations in bricks-and-mortar grocery retailing account for the highest share of operational logistics costs within the internal retail supply chain. The order packaging quantity (OPQ) is regarded as one important driver of instore logistics efficiency. We define the OPQ as the number of consumer units that are bundled into one order and distribution unit for supplying the individual stores. Therefore, the OPQ corresponds to the smallest possible order size and determines the possible granularity of order sizes with an impact on instore operations costs. In this paper, we develop a cost-minimization model including instore handling and inventory carrying costs to determine OPQs. The model developed builds on inventory management theory and is based on discrete probability distributions of consumer demand. We apply the model in an industry case study with real retail data for 39 stock keeping units and 1,180 stores of a European retail company. By applying the minimal-cost OPQ for all stores, the costs considered can be reduced by 9.4 %. This paper can be considered as a first in-depth analysis of the dormant instore efficiency potential in connection with adjusted OPQs that seems to be largely untapped in retail research and practice.

International transfer and perception of retail formats

Purpose– The purpose of this paper is to emphasize the important but neglected role of retail formats in the transfer and positioning decisions of international retailers. The paper examines the role of core and country-specific attributes of particular formats in determining retailers’ local positioning in inter-format competition.Design/methodology/approach– Focussing on three distinguished grocery formats (i.e. discounters, supermarkets, and hypermarkets) and using multiple-group structural equation models, the authors conducted consumer surveys in Germany and Romania to evaluate consumer perceptions of the core attributes of those formats and their influence on retail brand equity and consumer loyalty.Findings– Although consumer perceptions of core attributes differ between formats in Germany and Romania, most of the core attributes of the formats affect retail brands with equal strength in both markets. Retail brand equity determines loyalty to all formats in both countries.Research limitations/implications– Retailers transferring their formats to foreign countries should place particular emphasis on managing the core attributes of a specific format, as these attributes are of paramount importance in establishing a strong brand. Additional country-specific attributes are also relevant to varying extents, depending on the particular format that is used. Assessing causal relationships extends retailer knowledge of the role of format attributes.Originality/value– This study proposes a format-specific approach that is novel to international retailing research. The country comparison strengthens the study's implications, considers both a developed and an emerging economy, and accounts for the preference of Western European retailers to expand into Eastern European countries. The paper concludes that format transfer and positioning decisions occur within the boundaries of core format attributes.

A Study on Identification of Consumer Groups buying at Apparel Retail Store: A Cluster Analysis

The Indian Retail Industry is growing at such a fast rate that many foreign retailers want to capitalize on the growth momentum and the opportunity offered by the growing buying power of middle class. Many retailers are already present in Indian retail landscape and they are finding it difficult to run the business profitably. Not many India specific retail research has been carried out so far. Of late many researchers are coming up with studies that focus on India specific retailing. This study tries to study the type of customers who are visiting the apparel retailers and tries to group them based on certain parameters like their occupation, continued patronage and age. Cluster analysis is used as a statistical tool to group the sample into various groups. The result indicates the existence of four types of customer groups for the apparel retailing stores

Post-entry internationalisation activity of retailers

Purpose – The purpose of this paper is to propose a framework, based on empirical research, to explain the strategic processes of post-entry development in international retailing through consideration of the dynamic capabilities attributable to retailers. Design/methodology/approach – Case study approach of five international retail firms using secondary data and primary data gathered through interviews with firms ' executives and financial analysts. Findings – The research findings, in the light of the existing literature, suggest a framework that makes a distinction between first level or generic dynamic capabilities relevant to the internationalization process and second level or specific dynamic capabilities that are linked to particular strategies used by individual retail firms as they internationalize. Originality/value – Research in international retailing has focused on empirical studies despite calls for a more conceptual approach. This paper responds to this call by applying the dynamic capabilities approach to the post-entry international activity of apparel retailers.

Foreword: Special Issue on Retail Operations

This article draws on my field research in the retailing industry to identify the operational challenges faced by retailers and the relevance of those challenges to senior retail managers and researchers in operations management. It summarizes areas of research in retail operations that have evolved recently and are likely to be important in the future.

유니클로의 온라인과 오프라인 이미지가 멀티채널 브랜드 구매의도에 미치는 영향

Abstract Nowadays the advantages of multichannel retailing strategy in fashion business have been widely discussed, but empirical research on fashion retail has been limited. The purpose of this research is to provide some ideas on multichannel retailing strategy to fashion retailers through the case of UNIQLO. The online survey was conducted on each 100 female customers in their 20s, 30s, 40s living in seoul among UNIQLO customers. The survey was consisted of measurement items for UNIQLO’s online store image and offline store image, customer satisfaction, purchase intention, and demographic attributes. The online survey was found that 30.3% of UNIQLO’s multichannel customers bought a product from offline store using online shopping mall as a search channel, on the other hand, 20.7% of UNIQLO’s multichannel customers bought a product from online store using offline store as a search channel. Factors of the online shopping mall image were consisted of shopping convenience, product information, price policy, trust. And factors of the offline store image were consisted of trust and store, product information, service. Some factors of online store and offline store image had impact on multichannel customer satisfaction. And, customer satisfaction also had impact on purchase intention of UNIQLO product. Some suggestion for the future of multichannel research in fashion retailing was given. Keywords: UNIQLO(유니클로), muiltchannel(멀티채널), brand image(브랜드이미지), purchase intention(구매의도)

Integrative retail logistics: An exploratory study

Grocery retail companies have gone through a transformational change in the past by heavily investing in distribution centers of their own and by expanding their logistics activities. As a result, many retailers are now in the process of better adjusting their logistics operations to their specific requirements against the backdrop of raising pressure in a highly competitive environment. In this light, we provide an exploratory study based on semi-structured face-to-face interviews with 28 leading European grocery retailers. First we examine the current strategic designs of grocery retailers’ internal logistics networks. Next, we shift our focus to the resulting interdependencies in tactical supply chain planning between instore operations and upstream logistics processes. We have identified five interdependent planning issues: order packaging unit, store delivery pattern, store replenishment lead time, store delivery arrival times and arrival time windows, as well as roll-cage sequencing and loading carriers. Each of these mid-term planning interdependencies is evaluated with regard to implications in the stores, in transportation and in the distribution centers. The mid-term operations planning issues in the grocery retail industry considered in this paper have remained practically unexplored up to now. The outcome of this empirical research study therefore has substantial relevance for future retail research and practice.

When Kiosk Retailing Intimidates Shoppers

This study addresses kiosk-based shopping behavior among female consumers. The authors sought to build upon existing promotional retail research that showed and explained gender differences in experiential shopping environments. Upon confirming extant literature findings of gender differences as they apply to perceptions of shopping risk in kiosk environments, the current study manipulates levels of anticipated regret for males and females when shopping in kiosks versus traditional department stores in a between-subjects experimental design incorporating a diverse non-student sample. The robust gender difference indicates that targeted promotions for kiosks are critical to the reduction of possible regret and risk perceptions, especially for females.

Sustainability in retailing – a summative content analysis

PurposeThis paper aims to analyse past and current sustainability considerations and developments in scientific research and practice with a focus on the role of retailers in supply chains.Design/methodology/approachA summative content analysis is used to identify major research areas and industrial branches in the sustainability literature relevant to retail supply chains, and sustainability considerations in retail practice.FindingsSustainability‐related issues have been discussed for many years and the term sustainability has received increased attention in research since the mid‐1990s. In retail research, there seems to be a time lag of more than ten years in using the term sustainability compared to other fields in research and industry. However, some of these other research fields and industries have an impact on retail supply chains. At the same time, it seems that sustainability has received more attention in retail management practice compared to research applications.Research limitations/implicationsFuture retail research should try to integrate the findings from related research areas and industry sectors, and emerging issues in practice magazines.Originality/valueThis paper provides a comprehensive overview of past and current sustainability research in retailing and sustainability relevance in retail practice. The paper considers the specific role of retailers in supply chains through a broad analysis of sustainability considerations in different research areas and industries relevant to retail supply chains.

The Impact of Key Retail Accounts on Supplier Performance: A Collaborative Perspective of Resource Dependency Theory

Existing literature suggests that the increasing concentration in the retail industry is allowing powerful retailers to exploit their weaker suppliers, which causes the suppliers’ performance to suffer. This study takes a collaborative perspective of resource dependency theory and suggests that when suppliers engage in supply chain relationships with key retail account (KRA) customers, their performance may improve, depending on the varying levels of the supplier's and KRAs’ market shares. The empirical analysis of data from two large retailers, Wal-Mart and Target, and a broad cross-section of their suppliers provides ample support for most of the hypotheses set forth in this paper: Suppliers that depend on KRAs for a significant share of their total revenues relinquish some of their leverage in the marketplace, but as the KRAs gain market share, their suppliers’ performance tends to increase. Cumulatively, these results provide evidence of collaborative supplier–KRA relationships, such that a supplier's dependency on KRAs may positively affect supplier performance. This finding supports a more positive, symbiotic view of dependency, resulting in important implications for key account management, supply chain management, and retail research and practice.

An empirical investigation of the influence of optimum stimulation levels in retailing

PurposeA person's optimum stimulation level (OSL) reflects one's desired level of environmental stimulation and predisposition to act in the presence of environments. The purpose of this paper is to propose a comprehensive model, which illustrates that consumers with different levels of OSL have differing evaluations of retail store elements, shopping value and subsequent shopping behaviours.Design/methodology/approachTo examine the relationship between OSL and consumer perceptions and behaviours, interviews were conducted with retail shoppers in Taiwan (n=147).FindingsTaiwanese shoppers with a high OSL were found to have more favourable evaluations of a store's ambient, design, layout and density elements than did consumers with a low OSL. Additionally, the high OSL shoppers reported higher hedonic and utilitarian values from their shopping. Most importantly, the shoppers with a high OSL spent more time and money in stores.Practical implicationsWith this research, hopefully retailers will pay even more attention to the ambient, design and layout elements of their stores. In doing so, they might be able to attract more consumers with a high OSL and entice them to spend more money.Originality/valueThe paper contributes to the growing body of international retailing research by examining the effects of shoppers' optimum stimulation levels on their perceptions toward store elements, perceived shopping value, and purchase behaviours. Moreover, a comprehensive framework is put forth to assist future research.

The value of retail rents with regression models: a case study of Shanghai

Purpose: The purpose of this paper is to estimate the determinants of the retail space rent in Shanghai. Design/methodology/approach: Hedonic model and spatial regression models are used in the paper. The problem of spatial autocorrelation is tested by Moran's I statistics, and the root mean square error (RMSE) test is performed to find out the best model. Findings: The significant explaining variables are the age, the area of retail space, the distance to the Jing An CBD centre, the type of the retail and the district of the property. A new classification of district in retail research context is suggested in this paper, and it is proved to be better than the districts set up by government to explain the retail rent variation. Originality/value: This paper presents the first empirical study about the retail rental market in Shanghai. The research helps retail property investors and retail tenants deepen their understanding of the retail market in Shanghai. Spatial econometrics techniques are first introduced into the empirical retail rent research to produce a more precise estimation.

Preference Minorities and the Internet

Offline retailers face trading area and shelf space constraints, so they offer products tailored to the needs of the majority. Consumers whose preferences are dissimilar to the majority—”preference minorities”—are underserved offline and should be more likely to shop online. The authors use sales data from Diapers.com , the leading U.S. online retailer for baby diapers, to show why geographic variation in preference minority status of target customers explains geographic variation in online sales. They find that, holding the absolute number of the target customers constant, online category sales are more than 50% higher in locations where customers suffer from preference isolation. Because customers in the preference minority face higher offline shopping costs, they are also less price sensitive. Niche brands, compared with popular brands, show even greater offline-to-online sales substitution. This greater sensitivity to preference isolation means that these brands in the tail of the long tail distribution draw a greater proportion of their total sales from high–preference minority regions. The authors conclude with a discussion of implications for online retailing research and practice.

Innovations in Retail Business Models

A retail business model articulates how a retailer creates value for its customers and appropriates value from the markets. Innovations in business models are increasingly critical for building sustainable advantage in a marketplace defined by unrelenting change, escalating customer expectations, and intense competition. Drawing from extant strategy and retailing research, we propose that innovations in retail business models are best viewed as changes in three design components: (1) the way in which the activities are organized, (2) the type of activities that are executed, and (3) the level of participation of the actors engaged in performing those activities. We propose six major ways in which retailers could innovate their business models to enhance value creation and appropriation beyond the levels afforded by traditional approaches to retailing. We also describe the drivers of business model innovations, the potential consequences of such innovations, and numerous examples from retail practice that highlight our concepts and arguments. In doing so, we provide a starting point for academic research in a domain that is deficient in theoretical and empirical research, and offer retailing managers a framework to guide retail business model innovations for sustainable competitive advantage.

Silica Aerogel Cherenkov Counter for beta decay measurements

The world of retailing has changed dramatically in the past decade. The advent of the online channel and new additional digital channels such as mobile channels and social media have changed retail business models, the execution of the retail mix, and shopper behavior. Whereas multi-channel was in vogue in the last decade in retailing, we now observe a move to so-called omni-channel retailing. Omni-channel retailing is taking a broader perspective on channels and how shoppers are influenced and move through channels in their search and buying process. We discuss this development conceptually and subsequently discuss existing research in this multi-channel retailing. We also introduce the articles in this special issue on multi-channel retailing and position these articles in the new omni-channel movement. We end with putting forward a research agenda to further guide future research in this area.

Inter-relationships among dominance, energetic and tense arousal, and pleasure, and differences in their impacts under online vs. offline environment

Only a few studies have investigated dominance and observed mixed results. The impact of arousal on pleasure and behavior has also produced inconsistent or no meaningful results. In addition, emotional responses such as dominance, arousal, and pleasure have been assumed to be independent, which have resulted in a void in the relationships research among these constructs. Based on this research tradition, the present study proposed an inter-relationship among dominance, energetic and tense arousal, pleasure, and their impact on intention. A two-dimensional concept of energetic arousal and tense arousal has never been adopted and studied in previous retail research. Dominance, energetic arousal, and tense arousal are introduced to explain inconsistent relationships found in previous retail consumer studies. Results from a survey of 406 consumers (217 from offline store customers and 189 online store users) using PLS demonstrated that that (1) while dominance has a significant positive and/or negative effect on both energetic and tense arousal, it has no impact on pleasure and intention under both offline and online environment; (2) the effect of dominance on tense arousal is not statistically significant in an online shopping environment; (3) both energetic and tense arousal has a positive and/or negative impact on pleasure; (4) energetic arousal affects intention directly and indirectly mediated by pleasure, whereas tense arousal has an indirect effect on intention; and (5) the results found in testing differences in path coefficients under the two different shopping environment suggested that (1) the impact of dominance on energetic arousal is stronger under offline shopping context; (2) the effect of dominance on tense arousal is stronger in online environment; (3) the effect of energetic arousal on pleasure is stronger in offline shopping context; and (4) the impact of tense arousal on pleasure is stronger under offline shopping environment. Theoretical and practical implications are discussed in conclusion.