Small Retailers Research Articles

Exploring barriers and facilitators to direct-to-retail sales channels: Farmers’ perspectives on wholesaling produce to small food retailers in Charles County, Maryland

In 2020, a mobile application (app) was developed to connect small food retailers with local pro­ducers, recognizing the underutilization of direct-to-retail sales channels. Before piloting the app, formative research was conducted in Charles County, Maryland, to gain an understanding of existing direct-to-retail sales channels for locally grown produce. Seven stores were surveyed to explore current local produce stocking, and four farmers participated in in-depth interviews to pro­vide insights into their experiences with direct-to-retail marketing channels. The results indicate a limited stocking of local produce in the small food stores, some of which was self-procured to obtain adequate quantities. Farmers expressed a passion for contributing to food security in their commu­nity and a willingness to collaborate with store owners to strengthen their direct sales; however, they cited barriers such as the impact of the COVID-19 pandemic, competition with large distributors, and logistical challenges. Considering these existing barriers and facilitators, small food stores may still possess a unique potential to establish direct sale relationships with local farms. Such relationships could be effectively facilitated through the implementation of a digital strategy.

Financial Technology Adoption: Network Externalities of Cashless Payments in Mexico

Do coordination failures constrain financial technology adoption? Exploiting the Mexican government’s rollout of 1 million debit cards to poor households from 2009 to 2012, I examine responses on both sides of the market and find important spillovers and distributional impacts. On the supply side, small retail firms adopted point-of-sale terminals to accept card payments. On the demand side, this led to a 21 percent increase in other consumers’ card adoption. The supply-side technology adoption response had positive effects on both richer consumers and small retail firms: richer consumers shifted 13 percent of their supermarket consumption to small retailers, whose sales and profits increased. (JEL E42, L25, L81, O14, O33)

A low-carbon supply chain pricing mechanism considering CSR under carbon cap-and-trade policy.

In the context of environmental deterioration and people's growing environmental protection awareness, governments or regions have put forward corresponding carbon emission reduction policies. Among them, the carbon trading mechanism, as an effective means to promote enterprises to implement emission reduction measures, plays a crucial role in regulating enterprise behavior and promoting social sustainable development. Since various industries and sectors support each other in social and economic development, it is more reasonable to study the carbon emission reduction optimization decisions of society and enterprises from the perspective of the supply chain. To achieve the carbon reduction target of the supply chain system, manufacturing enterprises usually need to incur additional costs to invest in emission reduction technologies, and retail enterprises also need to conduct low-carbon publicity to increase product market share. On one hand, considering the impact of the government's emission reduction constraints and consumers' low-carbon preferences, manufacturers will take corporate social responsibility (CSR) into consideration to enhance product competitiveness. On the other hand, smaller retailers are more concerned about being treated fairly than about their own profits due to the extra cost of low-carbon advertising. In this paper, considering the background of carbon trading, the manufacturer's CSR and retailer's fairness concern behavior are introduced into the decision-making process of the low-carbon supply chain (LCSC), and the relevant emission reduction decision-making model is constructed by using Stackelberg game theory and backward derivation method. Through comparative analysis of relevant parameters, members' profits and utilities, this paper focuses on the influence of CSR and fairness concerns on system decision-making. The results show that the optimal way for LCSC decision-making is to cooperate with fair-concerned retailers and manufacturers with CSR. When manufacturers consider social responsibility within a certain range and retailers bear part of the cost of social responsibility as followers, it can not only effectively improve the emission reduction level of the supply chain and the profits of each entity, but also help to increase the enthusiasm of each entity for carbon emission reduction and the overall social welfare.

Retailer experiences with tobacco sales bans: lessons from two early adopter jurisdictions

BackgroundBeverly Hills and Manhattan Beach, California, are the first two US cities to prohibit the sale of tobacco products, passing ordinances that went into effect on 1 January 2021. We...

Partnering Implementation in SMEs: The Role of Trust

Resource Dependence Theory suggests that (a) power balance with resource interdependency, (b) formal/informal procedures for resource exchange, and (c) matching in goals and operational philosophies positively affect partnering implementation (information exchange and joint decision-making). Additionally, improved partnering implementation positive affects commitment fulfillment and dispute resolution. In a setting where SMEs supply to small local retailers, the SMEs do not suffer from low bargaining power and rely on informal contracts, and both firms are compatible. The small trading partners in this study predominantly have face-to-face and telephonic interactions with each other (possible due to the small number). Knowledge of one another and a simple transaction process reduces risk and uncertainty, and leads to trust. In this study, trust is a contextual factor, and we aim to determine if there is a positive effect of (a), (b), and (c) on partnering implementation, and if the effect strengthens with an increase in the level of trust. Survey data are used to calibrate and validate a structural equation model independently. Through empirical research, we aim to identify deviations in results, determine the cause of deviation in the study characteristics, and add explanatory power to research findings. Except for the influence of trust on the positive relationship between informal procedures and partnering implementation, the finding fits with the theoretical bases. With a high level of trust, clarity in time, accuracy, and relevance of information exchanged may be lacking, compromising decision-making and adding to the ambiguity of partnering implementation with an informal agreement.

A critical analysis of the marketing mix elements of small businesses in the retail sector in Durban Central Business District

In an incisive analysis of the marketing mix's impact on small retail businesses in Durban's Central Business District (CBD), this study scrutinizes the extended 7Ps framework: product, price, place, promotion, process, people and physical evidence. Utilizing a quantitative methodology, data from 217 owner-managers, captured via a 5-point Likert scale, were analysed through ANOVA and Tukey's HSD tests, unearthing deep insights. The findings disrupt conventional marketing paradigms, revealing that an intense focus on product attributes does not correlate with enhanced performance. Small businesses that maintained competitive, yet balanced pricing mechanisms outstripped are those that engages in fierce price wars, underscoring the dangers of excessive price reductions. Strategic promotional activities and well-considered choice locations were pivotal, whereas overemphasis on physical evidence and internal processes proved detrimental. The study results advocate for a balanced, strategic approach to the marketing mix, urging small businesses to rethink traditional priorities. This study offers crucial guidance for business owners seeking to optimize performance and calls for targeted policy measures to support the retail sector’s growth and sustainability.

A history of visual merchandising and American firearms

Purpose This article presents a history of the visual merchandising of American firearms from the mid-19th century until the present day. Although the scholarly literature has investigated visual representations of guns in advertising and popular media, it has paid far less attention to how sellers have displayed these objects at or near the point of purchase. Design/methodology/approach Primary sources include frescoes, engravings and photographs, plus papers, advertising and illustrations in popular newspapers and trade magazines. These and other period visual data are supplemented by secondary sources from a variety of fields, especially retailing and firearms history. Findings Evidence shows that American firearms were merchandised visually by Samuel Colt at three world expositions in the 1850s, by gunmakers and retailers in the latter 19th century, by Winchester and Remington dealers in the 1920s and 1930s, by high- and low-end retailers in New York in the first half of the 20th century and by gun stores, auctions and shows up to the present day. Originality/value The history of visual merchandising generally has focused upon major department stores, their alluring street-front windows and their fancy interior displays. This research explores past and present visual merchandising of firearms by manufacturers and smaller retailers. To the best of the author’s knowledge, it is the first such history of the subject.

Kinks as Goals: Accelerating Commissions and the Performance of Sales Teams

Piecewise-linear reward schemes are very common in workplaces; by definition, they divide the set of possible performance levels into disjoint intervals that could have psychological value to workers. When these schemes take the form of lump-sum bonuses, any psychological rewards associated with attaining a performance interval are hard to distinguish from material ones because both material and psychological incentives predict bunching at the output needed to earn the bonus. To disentangle these effects, this paper studies a common but understudied class of piecewise-linear pay—accelerators—in which the mechanisms’ predictions conflict. Using the distributions of daily sales in 103 small retail teams, we find that daily sales bunch at accelerators, which is inconsistent with models in which only material rewards matter. Combining simple theoretical models, institutional evidence, and heterogeneity analyses, we argue that this unexpected bunching results from teams’ decisions to use the convenient, salient kink points as shared goals, which yield symbolic utility to their members when the points are attained. This paper was accepted by Lamar Pierce, behavioral economics and decision analysis. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2023.01661 .

Brand Adoption by BoP Retailers

The article brings out the major factors that bottom-of-the-pyramid (BoP) retailers consider when adopting brands. It suggests that, besides the known variables of profitability, relationship and merchandise, these retailers attach importance to efforts that lead to reduced perceived risk. These include replacement and buyback facilities besides credit. They define the relationship with distributors/wholesalers not just as firm-firm business-based, but also as stemming from familial, social and ethnic dimensions. Based on 472 responses of acceptance or rejection from BoP retailers from rural India, the findings show a positive, significant relationship with brand characteristics. On the other hand, product-related factors showed a significant but negative relationship. The study found a significant but negative association between distributor relationship and probability of adoption, which should be considered in conjunction with credit, replacement and buyback facilities. The authors suggest that, while brand demand is a significant factor, strategies based on service-dominant logic would be more effective in sustained adoption of brands among small retailers.

Small independent retailers: digitalize or disappear? An empirical study based on dynamic capabilities

PurposeThis study analyzes how small French retailers are adapting their front-office to the digitalization of their business environment.Design/methodology/approachThe qualitative study focuses on dynamic capabilities of 27 independent French retailers, in a wide variety of sectors.FindingsThe digitalization of small retailers does not date from the pandemic health crisis. Small retailers are willing, agile and organized to make controlled progress, ranging from the visibility on social networks to online sales with its specific logistical constraints. Even if their presence on marketplaces is trickier to implement, it represents the culmination of the digitalization process, once their online store has been launched. The digital transformation of independent retailers should be less radical than for large retailers.Research limitations/implicationsBy distinguishing between the concepts of adaptive, absorptive and innovative capabilities, this research highlights strong differences between small retailers, that is SMEs, and larger companies. In terms of adaptive capabilities, it confirms that small retailers are not embracing digitalization as a fad, but because of real changes in the market, and particularly in demand. In contrast to large companies, small retailers drive it more around external objectives linked to their intimate knowledge of changing customer behavior (customer centricity). In terms of absorptive capabilities, the success or failure of digital transformation weighs directly on the entrepreneur's shoulders, but is less hampered by technological legacy. Despite interviews only conducted in the Paris region, it converges with professional studies carried out on a larger scale in France. Its widespread use is certainly easier in countries at the same stage of commercial development.Practical implicationsIn terms of innovative capabilities, independent retailers need to focus on four key areas: reinventing the in-store experience; increasing visibility on social networks; creating an online store; being present in one or two marketplaces or creating a common platform with other local merchants.Originality/valueThis research is one of the first to analyze the digital transformation experienced by small structures. It draws on the concept of dynamic capabilities, well-suited to technologically and commercially dynamic markets. It puts into perspective studies carried out in other countries on less diversified types of shops. Unlike other studies examining the front office, it does not exclude stores and SEO in marketplaces.

Sustainable practices in last-mile logistics of small Brazilian e-retailers: an analysis using an MCDM approach

ObjetivosEl objetivo es contribuir al desarrollo de estrategias mediante la identificación de prácticas sostenibles. Por lo tanto, la investigación tiene un doble objetivo: revelar las prácticas de sostenibilidad integradas en las actividades logísticas de última milla de minoristas de comercio electrónico, analizar las interrelaciones entre estas prácticas y categorizarlas según su importancia para los pequeños minoristas de comercio electrónico en Brasil.MetodologíaSe llevó a cabo un mapeo de la literatura para identificar prácticas de sostenibilidad en las actividades de última milla adoptadas por minoristas en línea, lo que llevó a la propuesta de un metamodelo. Un total de 67 artículos forman parte de la muestra final. Posteriormente, el estudio aplicó la técnica de toma de decisiones multicriterio Decision-Making Trial and Evaluation Laboratory (DEMATEL) para estructurar el problema de investigación mediante análisis de causa y efecto entre las prácticas, con el objetivo de priorizar las prácticas críticas.ResultadosEl resultado indica una fuerte dependencia de prácticas económicas para implementar la sostenibilidad en la logística de última milla. En la dimensión económica de la sostenibilidad, los costes operacionales y la calidad de los servicios son variables de efecto y presentan una fuerte correlación.OriginalidadLa originalidad de esta investigación radica en identificar prácticas de sostenibilidad económica, social y ambiental adoptadas por minoristas en línea en los procesos logísticos de última milla. Además, el estudio se centra en el segmento minorista de comercio electrónico a pequeña escala, un área poco explorada en el contexto brasileño. Por último, el metamodelo propuesto contribuye a abordar prácticas desde la perspectiva de la Teoría de los Stakeholders y el enfoque de Sostenibilidad.Limitaciones/implicaciones para la investigaciónEl artículo proporciona contribuciones teóricas al abordar dos áreas complementarias de conocimiento: la Teoría de los Stakeholders y la Sostenibilidad, alineándose también con las directrices de la Iniciativa de Reporte Global (GRI). En términos prácticos, destaca al ofrecer ideas valiosas sobre la implementación de estrategias sostenibles al identificar prácticas económicas, ambientales y sociales en la logística de última milla, particularmente en el contexto de las pequeñas empresas en el segmento minorista en línea.Implicación prácticaLos resultados ayudan a los minoristas electrónicos a reevaluar los procesos logísticos de última milla desde una perspectiva de sostenibilidad. Este estudio pretende contribuir el avance del conocimiento de la literatura actual sobre la adopción de prácticas sostenibles en pequeñas empresas de comercio electrónico.Implicación socialTeniendo en cuenta que uno de los pilares de la sostenibilidad es el compromiso con el desarrollo social, este estudio contribuye a comprender la visión de los pequeños minoristas electrónicos sobre los trabajadores independientes encargados de la entrega de mercancías.

WINNING MECHANISMS OF SURVIVAL: A CASE OF “BUL-ANON” RETAILERS IN RURAL PHILIPPINES

This study focused on the challenges faced by a group of independent and small retailers called Bul-anon retailers and identified coping mechanisms adopted. The study was conducted to investigate the coping me­chanisms that can be utilized by other members of the retail industry to continue to thrive despite difficulties. Findings indicated that the challenges faced by the Bul-anon retailers revolved around three of the four primary business functions: marketing, finance/accounting, and operations. To avoid the significant impact of the above challenges, retailers adopted coping mechanisms to stay in business amidst large department stores and other businesses. How they handled their customers, being customer-oriented, was the winning mechanism for the survival of these retailers.

RUSSIAN RETAIL TRADE IN RUSSIAN FEDERATION: CURRENT STATE

The present paper contains a description of article the current state of the retail market in the Russian Federation. The main trends of the development of retail in Russia are shown. These trends include the growth of digital retail, the emergence of new retail formats adapted to the changing purchas-ing power of the population, the entry of federal retail operators into new regional markets and the acquisition of small retail companies by large chains. A major threat to the sustainable development of retail may be a shortage of labor, which requires a revision of the policies of retail companies in the field of personnel management.

Unveiling the Puzzle of Social Media Adoption Among Small Grocery Retailers

This research is aimed to understand the intentions of small grocery retailers in adopting social media for marketing purposes. The research used an integrated TAM-TOE framework combined with an SOR framework for understanding factors influencing the intention of small grocery retailers to adopt social media. Mixed methods were used for the study. Initially, in-depth interviews were conducted with 55 retailers to develop a grounded model, which was verified through a survey of 874 retailers. Findings suggest that perceived usefulness and perceived ease of use were positively related to relative advantage, interaction, organizational competency and complexity, bandwagon effect, and competitive pressure. Retailer age and retail outlet also had moderation effects. Small grocery retailers who understand the relative advantage of social media are more likely to adopt it, influenced by the bandwagon effect. Intense competition is also pushing retailers to adopt social media to avoid losing customers and missing out on potential opportunities.

Open Network for Digital Commerce in India: Past, Present, and Future

Abstract The primary objective of this article is to provide a comprehensive analysis of the open network for digital commerce (ONDC), an innovative initiative by the Indian government. The study aims to explore the potential impact of ONDC on India’s digital commerce sector, focusing on how it seeks to democratize digital commerce and create an environment characterized by fair competition, innovation, and inclusivity. Our methodology involves an extensive review and thematic analysis of relevant literature. This approach includes a detailed examination of ONDC’s core objectives, its technological underpinnings, and the role of the government in facilitating its growth and adoption. The study is designed to provide a holistic view of ONDC, considering various aspects such as technology, policy, and market dynamics. The analysis suggests that ONDC could revolutionize India’s digital commerce ecosystem. Key findings indicate that ONDC can enhance interoperability, empower small businesses and local retailers, and diversify consumer choices. The initiative’s reliance on existing digital frameworks like the Unified Payments Interface and the Data Empowerment and Protection Architecture is crucial in streamlining transactions and bolstering data security. However, the realization of ONDC’s full potential is contingent upon its effective implementation and widespread acceptance among stakeholders. This study contributes to the existing body of knowledge by comprehensively analysing ONDC, a relatively new and underexplored area in digital commerce research. It offers original insights into the initiative’s potential to transform India’s digital commerce landscape. The article also identifies gaps in current research, such as the limited scope of existing studies, the absence of primary data, and the influence of external variables. It suggests avenues for future research, including longitudinal studies, international comparisons, and primary data collection, to understand ONDC better and its long-term impact on India’s digital commerce sector.

Rental Housing Supply and Build-to-Rent Conundrum in Australia

Traditionally, rental housing has been supplied by a large pool of individual investors who own a few units and invest their savings, with some leverage, to take advantage of the tax regime in Australia. The last five years have seen the emergence of build-to-rent (BTR) units, which are supplied by investors who own a large number of units. The state of Victoria in Australia has the largest share of these projects. In the current market and regulatory environment, the financial viability of BTR projects is low for investors and hinges on the ability of units to be leased at higher than market rents. This paper examines four groups of levers, including those already being pursued by the building industry, that can be used to improve the financial viability of BTRs. These include: (i) revenue maximization, (ii) cost reduction (iii) fiscal and (iv) planning incentives. An archetypical BTR project which mimics current practice is considered, assumed to be in Docklands, Victoria, where several BTR projects are planned. For the robustness check, a feasibility analysis is conducted for a site in North Melbourne, a neighbourhood in Victoria with several BTR projects. The results indicate that for revenue maximization, the mix of unit types in a BTR project should be location-specific, as market preferences (and the characteristics of renters) determine the rent for different types of units that can be achieved. In a conventional BTR project development, where land is bought upfront and the project is developed, the mixed-use BTR (residential in combination with commercial) does not provide significant financial benefits though including small retail (3–4% of the net lettable area) may provide complementary benefits. Incurring large capital costs upfront and having the revenue stream spread over long periods reduces financial viability. While construction costs are more difficult to reduce, ways to reduce land costs could be through zoning land for BTR use, through mechanisms such as joint ventures with landowners, and land leasing. Exemptions on income, land tax, and rates (like CHPs) can result in a higher return for investors. A full GST refund, an incentive that industry is lobbying for, results in a similar IRR as an exemption on income, land tax and rates would offer. These results will assist in determining priorities for policies that are aimed at BTR.

Participatory decision-making, job satisfaction and employees’ innovative work behavior among small retail stores

Participatory decision-making, job satisfaction and employees’ innovative work behavior among small retail stores

Analysis of Product Sales in the Application of Data Mining with Naive Bayes Classification

H&F Shoe Store is a privately owned Micro, Small, and Medium Enterprises retail store that sells merchandise. The owner serves customers directly and also acts as a cashier. In this store, the business owner is less aware of what types or categories of products are most in demand by customers, making sales operations less than optimal. Because of this, special expertise is needed to handle the problems in the retail store, namely data mining or Data Mining with the aim of digging up information related to sales problems, in this case the author will use the Classification method with the Naive Bayes algorithm. In this study, the author uses secondary data obtained from sales notebooks and re-collected into Microsoft Excel according to research needs. The data that has been collected on the software is 121 data which have 10 attributes, namely “Nama Produk”, “Size Produk”, “Kategori Produk”, “Jenis Produk”, “Gender Produk”, “Merek Produk”, “Stok Awal”, “Stok Terjual”, “Stok Sisa”, and “Penjualan”. The Naive Bayes Classifier method has successfully produced good results in classifying sales on a type or category of marketed products, the results obtained are in the form of product sales analysis and Naive Bayes model evaluation values. The results of the model evaluation values on the Confusion Matrix obtained are accuracy of 86.11%, recall of 84.62% and precision of 84.62%.

Opportunities and challenges of smart technology for small independent fashion retailers: a reflexive thematic analysis using the technology-organization-environment framework

Smart technology has become an increasingly prominent feature in the fashion apparel industry. However, small retailers still face challenges while trying to adopt such innovative smart technologies to increase consumer interaction and sales. By applying the Technology, Organization, and Environment (TOE) framework, the aim of this study is to understand small independent fashion retail owners’ and employees’ thoughts on innovative retail technologies and their reactions to the currently available new technology. A qualitative research method of in-depth interviews with 11 participants working in fashion companies was used. The themes that emerged in this study represent criteria to be met prior to adopting new technology for small fashion retailers, including transparency, consistency, and integration of technology. While there were concerns regarding the cost and timing of adopting smart technology, they all expressed unanimous agreement that these advancements would become the next major trend in fashion retail, enhancing consumer connectivity. In particular, the smart technology they plan to adopt must possess the capability for reciprocity between consumers and the company. This will motivate a resurgence of innovative technologies in the less advanced fragment of small independent fashion retailers. Future research can focus on analyzing how the implementation of new smart technologies affects these types of businesses and their customer satisfaction.

Unveiling barriers to O2O technology platform adoption among small retailers in India: insights into the role of digital ecosystem

Purpose This study aims to delve into the intricate world of small retailers in India, seeking to understand the impediments/barriers they encounter when trying to embrace online-to-offline (O2O) platforms. It also investigates the potential impact of the digital ecosystem in moderating these barriers. Design/methodology/approach Data from 426 Indian retailers was collected, and structural equation modelling was used to validate the conceptual framework. Findings The findings highlight the importance of addressing distrust and technological anxiety as key barriers to O2O platform adoption. Psychological risk, low-tech orientation, privacy risk, financial risk and social risk were also identified as barriers. Interestingly, performance risk and infrastructure were found to be insignificant in this study. The study indicates that the digital ecosystem does moderate the relationship between psychological risk, performance risk, distrust and technological anxiety with attitude. Research limitations/implications This research holds significant implications for technology adoption, retail management and aggregator platform development in developing nations, notably India. This research draws upon a conceptual framework to deepen the understanding of the O2O technology platform by providing an all-inclusive overview. Originality/value This study breaks new ground by investigating the distinctive obstacles to O2O adoption faced by small retailers in India. By validating the digital ecosystem’s moderating effect, this research yields insights that are context-specific and particularly relevant to the Indian retail landscape. Valuable guidance is offered for researchers, practitioners and policymakers navigating O2O strategy implementation in emerging markets.