UK Retail Sector Research Articles

Walking the talk? Supply chain accounting and trust among UK supermarkets and suppliers

This paper examines the way in which calculative practices are implicated in the constitution of trust in the UK retail sector. In the sector, where trust receives much attention in declarations of intent, the notion of category management – a framework for orchestrating collaborative buyer–supplier relations based on dualistic modes of information exchange – has become widely adopted. Drawing on Giddens’ conceptualization of trust in abstract systems, it is argued that regimes of calculative practices embedded in the category management framework played an integral role in constituting system trust in category management and enabled its rapid diffusion across the sector. However, modes of supply chain accounting can also be deployed as a mechanism to further particular interests behind a veil of talk about trust. This paper presents a longitudinal field study where management accounting practices pursued under the banner of category management operated to dissemble a variety of self-interested actions and trust was deployed largely as a discursive resource which ultimately resulted in distrust and cynicism. This paper presents a framework for conceptualizing the relationship between accounting and inter-organizational trust and provides insights into the way that accounting techniques such as open booking accounting and joint performance management introduced amid ‘trust talk’ can act to undermine trust in buyer–supplier relations.

“Radical mainstreaming” of fairtrade: the case of The Day Chocolate Company

PurposeThe purpose of this paper is to further develop the recent discourse surrounding the mainstreaming of fairtrade (FT) products, particularly the concepts of “radical mainstreaming”, “clean‐wash” and “the Alternative High Street”. The research investigates the pros and cons of mainstreaming FT in the concentrated UK retail sector via the exemplar of The Day Chocolate Company.Design/methodology/approachThe paper draws on a longitudinal case study of one of the original “trail blazers” for FT in the mainstream, the 100 per cent FT social enterprise, The Day Chocolate Company (Day). The authors possess special insight to this pioneering FT model due to their unique experience of working at Day and the lead author's research, which includes findings from a series of in depth semi‐structured interviews with key informants.FindingsWith particular reference to the concepts Clean‐wash/ “Fair Trade Lite” the paper critically analyses the advantages and disadvantages of mainstreaming FT. The paper demonstrates how radical mainstreaming by 100 per cent FT companies can actually strengthen the transformative message of FT and not undermine the original ethical interest. Their ability to communicate a more complex deep message to a wider audience via unique FT brands allows radical mainstreaming companies to raise the bar and avoid the dangers of Clean‐wash. Finally the paper illustrates the significance of the Alternative High Street for radical mainstreaming companies.Research limitations/implicationsThe radical mainstreaming innovation in the paper demonstrates the value of intangibles such as relationships and networks. This means companies such as Day, could be better positioned than their private sector rivals to take advantage of the new dominant logic of marketing as it uses more operant resources to co‐create value between producers, retailers and consumers. Further research will investigate in more depth the nature of those operant resources.Originality/valueThis paper will be of interest to all key stakeholders within the FT movement including marketing professionals and other “values‐driven organisations” such as social enterprises. This research shows that sales in the UK mainstream retail market are not enough in maintaining the original ethical interests of FT; you need business models such as Day, that share power and value added between Southern and Northern partners. Further development of such radical mainstreaming business models is key to strengthening both sales and the original transformative message of FT.

Supply‐Chain Accounting Practices in the UK Retail Sector: Enabling or Coercing Collaboration?*

Supply‐Chain Accounting Practices in the UK Retail Sector: Enabling or Coercing Collaboration?*

Maximising women's potential in the UK's retail sector

PurposeThe purpose of the paper is to show that a defining characteristic of the UK retail sector is the high number of women it employs but there remains an enduring under‐representation of women in its management positions. The majority of women in the industry work part‐time and this paper aims to explore the factors that impact upon the career progression.Design/methodology/approachIn the paper, 1,000 questionnaires were completed by store staff in three leading retailers, supported by interviews with store staff and SME retailers in the UK's East Midlands region.FindingsThe paper finds continuing barriers to career progression for women working part‐time in retailing. Despite family friendly employment policies becoming an increasingly important feature of modern work organisations, career progression was informed by a traditional concept of a career based on full‐time working.Research limitations/implicationsThe paper was limited to one sector. There is a need for further studies into women's career progression in other sectors reliant on female employment.Practical implicationsThe findings in the paper have implications for promotion policies, training and development provision and line management practices if retailers are to maximise the potential of the women they employ.Originality/valueThe paper suggests that retailing is an industry where a significant number of women are working below their potential despite organisational policies supportive of diversity and equality of opportunity.

Personal identification (PIN) numbers: a new cause of financial exclusion in older people

Since April 2003 the UK government has been phasing out paper pension books. Previously, many older people received their pension benefits by using paper slips which were exchanged for cash at the Post Office. Now, the state pension is transferred directly into a bank account and cash obtained by using a bank card, keypad and a four digit personal identification (PIN) number. The system is believed to be more secure and mirrors wider changes in the UK retail sector. People with dementia or early memory problems are likely to have difficulty remembering their four-digit PIN number, however, there has been little research into the level of cognitive ability a person requires to be able to manage their financial affairs. This cross-sectional study was conducted on 35 consecutive attendees at a medical day hospital, and 15 from a local community centre. All were community dwelling, aged over 65 with no acute medical or psychiatric illness, gave consent and were fluent in English. Ethical committee approval was obtained. Our main hypothesis was that cognitive impairment could be associated with difficulty in using a PIN number and keypad.

An integrated approach to managing reverse logistics

Supply chain management has been defined as the management of upstream and downstream relationships with suppliers and customers in order to create enhanced value in the final market-place at less cost to the supply chain as a whole. However, most research in the field has focused on the delivery of product to the market-place and there has been limited research on the reverse logistics process. The research reported in this paper seeks to contribute to the development of a literature on reverse logistics and, based on empirical findings in the UK retail sector, it is argued that if organisations managed product returns in a holistic way, the level of returns currently experienced by retailers could be reduced significantly. A framework is put forward for managing reverse logistics through adopting the three management approaches of integration, collaboration and evaluation. In conclusion, it is argued that the use of such an integrated supply chain approach offers significant opportunities to reduce the cost of reverse logistics operations while maximising asset recovery values.

Walking the Talk? Supply Chain Accounting and Trust Among UK Supermarkets and Suppliers

This paper examines the way in which calculative practices are implicated in perceptions of trustworthiness in the UK retail sector. In the sector, where trust receives much attention in declarations of intent, the notion of category management - a framework for orchestrating collaborative buyer-supplier relations based on dualistic modes of information exchange - has become widely adopted. Drawing on Giddens' conceptualisation of trust in abstract systems, it is argued that regimes of calculative practices embedded in the category management framework played an integral role in constituting system trust in category management and enabled its rapid diffusion across the sector. However, modes of supply chain accounting can also be deployed as a mechanism to further particular interests behind a veil of talk about trust. This paper presents a longitudinal field study where management accounting practices pursued under the banner of category management operated to dissemble a variety of self-interested actions and trust was deployed largely as a discursive resource which ultimately resulted in distrust and cynicism. This paper presents a detailed framework for conceptualizing the relationship between accounting and inter-organizational trust and provides insights into the way heavy-handed forms of accountability can undermine trust in buyer-supplier relations.

Assessing the Productivity of the UK Retail Sector: Some Further Reflections

This note briefly examines three issues in response to the Reynolds paper on productivity in UK retailing. First, it examines whether aggregate statistics on retail productivity provide an accurate assessment of productivity trends in the sector. Second, it discusses the potential contribution that analysis with firm level data can make to understanding retailing performance. Third, it summarises some OECD work that examined the impact of regulation on retailing productivity.

An analysis of the factors affecting the adoption of the Internet in the UK retail sector

A multitude of opinions has been propounded to explain how the Internet can be exploited by commercial organisations. For the most part, they are speculative, visionary, or promotional. This work seeks to redress the balance by reporting on an empirical research project that has recently been conducted into the adoption of the Internet within the UK retail sector. More specifically, the research reports on the application of multivariate statistical techniques to a set of questionnaire responses, with a view to critically evaluating the factors that affect the adoption of the Internet. It has been shown that certain factors are far more significant than others in influencing the adoption decision. In particular, it has been demonstrated that operating in an appropriate market sector and having a positive view of the viability of the Internet are of particular significance. Furthermore, the importance of developing a coherent and integrated Internet strategy, the need for senior management commitment, and the presence of an appropriate infrastructure and development capability are also highlighted.

Operating lease finance in the UK retail sector

The paper documents the importance of leasing in the UK retail sector and estimates the potential balance sheet impact of new accounting proposals to bring all leases onto lessees' balance sheets. Off-balance sheet operating leases are shown to be a major source of finance, and far more important (3.3 times higher) than on-balance sheet long-term debt; by contrast, finance leases are immaterial. Operating leased assets, the major part of which is ‘land and buildings' (98%), represent a significant proportion (28%) of reported total assets. Capitalization of operating leases would have a major impact on nine key performance ratios and would alter the ranking of companies markedly. The findings suggest that operating leases need careful consideration is estimating retailers’ financial risk, in comparing cross-national performance and in research studies of capital structure decisions.

Optimising spatial mergers: commercial and regulatory perspectives

This paper explores the potential application of spatial analysis and modelling techniques to the merger problem, and introduces a conceptual spatial modelling framework to improve retail merger and acquisition planning from both a commercial and regulatory perspective. Focusing on the UK retail sector, the paper demonstrates the importance of local scale market ‘dynamics’ in merger and acquisition (M&A) planning and evaluation; reviews the range of existing spatial modelling approaches to retail location problems, and illustrates how these models can be applied to M&A planning.

Corporate branding in the retail sector: a pilot study

It can be argued that corporate branding is essentially a strategic task spanning across functional boundaries and internal and external spheres of the organisation. This paper presents the findings from a study in the UK retail sector, to assess whether practitioners share the view that the corporate brand is an integrative device and that the process of corporate branding is holistic in nature.

Signs of change? A longitudinal study of Internet adoption in the UK retail sector

The Internet and the World Wide Web have changed quite significantly in a relatively short period of time. Some of the differences are readily quantifiable or at least easily visible; e.g., exponential growth rates in the number of users, rapid expansion in the number of personal and business web sites, an increase in transmission speeds and the advent of new markup scripts, such as DHTML. Whilst these quantifiable changes and technological improvements are a valuable benchmark when considering the practical ramifications of developing an on-line business, from a strategic perspective it is perhaps more important to consider the extent to which Internet technologies are likely to effect long-term changes to organisational behaviour and economic activity. For instance, in the book retailing business, Internet vendors, benefiting from comparatively low on-line set-up costs, have been able to use price as a major marketing tool. This action has resulted in reduced profit margins across the sector. Therefore, from a retailer's perspective perhaps the most important issue to resolve is not whether there are sufficient customers on-line but how e-commerce is likely to reshape their markets and business processes. However, little academic research exists which has recorded Internet adoption trends, over time, making assessment of such issues difficult. This paper seeks to redress the balance by presenting a comprehensive and rigorous longitudinal review of the adoption of e-commerce within the UK retail sector. More specifically, the paper provides an up to date assessment of the state of e-commerce within the UK retail sector, before reviewing trends in its adoption over a four-year period form 1997 to 2000. The key finding is that whilst clear evidence of growth has been found across all types of retailers, it is fastest amongst larger retailers, and those operating in sectors such as books, alcoholic beverages and mail order. The paper concludes by offering implications for retail practitioners and for research.

The Potential Impact of Enforced Lease Capitalisation in the UK Retail Sector

The main objective of the paper is to assess the potential economic consequences of the G4+1 proposed changes to lease accounting by examining companies in the UK retail sector over the 1994-99 period. The magnitude of the impact of lease capitalisation is assessed by examining the effect on nine key accounting ratios that are used in decision-making and in financial contracts. A 'constructive capitalisation' procedure is used to estimate the unrecorded lease liability and asset. Operating lease finance is shown to be very important in the retail sector, with a long-term liability approximately 3.3 times higher than on-balance sheet long-term debt; by contrast, finance leases are immaterial. Operating leased assets, the major part of which is 'land and buildings' (98%), represent a significant proportion (28%) of reported total assets. Capitalisation of operating leases would have a major impact on all nine ratios. Further, the ranking of companies changes markedly for asset turnover, interest cover and the three capital-based gearing measures, and especially for general retailers. Using credit-risk adjusted discount rates would lessen slightly the impact of capitalisation, but would have little impact on intra-sector ranking of company performance. Anticipation of future lease rental increases would have a significant impact on the level of operating lease assets/liabilities and on profit after tax. While the use of renewable short lease contracts (or break clauses) would reduce the level of operating lease assets and liabilities, substantial amounts would remain to be reported on-balance sheet. These findings contribute to the assessment of the economic consequences of a policy change requiring operating lease capitalisation. Prior research suggests that individual users of financial statements are not efficient information processors, and also that company managers do not believe that users, even in aggregate (e.g. the stock market) are efficient processors. Consequently, the significant changes in the magnitude of key accounting ratios and the major shift in company performance rankings suggest that interested parties' economic decisions are likely to be affected.

Marketing to UK retailers: Understanding the nature of UK retail buying of textiles and clothing

This paper examines the likely influences on the sourcing of textiles by UK retail buyers. It reports the results of secondary data analyses on the retail market and primary data from personal interviews with 102 textile buyers. The main influence on the British market from changes in international agreements will be a greater opportunity to source from low‐cost markets. This could negatively affect traditional sources such as Italy and Portugal. The structure of the UK market is analysed to provide a basis for the selection of interviewees. Buyers who were interviewed tended to fall into two groups, younger but well qualified and older, less well qualified but more experienced. The younger group included more females. They tended to refer important decisions to others, although this correlated more with experience than with gender. Conclusions are drawn on the implications of the study for textile marketers, particularly those from other EU countries. By enhancing their understanding of the structure of the UK retail sector, suppliers are able to devise strategies that take into account the specific nature of distribution of textiles and clothing in the UK, and consequently increase their ability to compete in this changing market.

In Sam we trust: the untold story of Sam Walton and how Wal-Mart is devouring America

Wal-Mart's mighty presence is no longer restricted to America. To the alarm of the UK retail sector, June 1999 saw Wal-Mart devour Asda. And given Wal-Mart's track record in the rest of the world, such alarm is well-founded. For instance, within seven years of Wal-Mart invading Canada and Mexico it became the largest retailer in both countries. It took less than two years for it to become the fourth largest retailer in Germany, while France and several Scandinavian countries now look destined for Wal-Mart's shopping basket. In Sam We Trust offers an exhaustive in-depth investigation into this powerful retailing empire. Bob Ortega, The Wall Street Journal's authority on Wal-Mart, goes beyond the headlines and Sam Walton's carefully crafted public image to reveal the ruthless penny-pinching manipulator behind the visionary genius. He also provides an illuminating history of retailing that includes case studies of such important Wal-Mart competitors as Sears, J.C. Penny, Price Clubs and, of course, Kmart. In Sam We Trust describes in detail not only how Wal-Mart became what it is, but also how it works today. In this new edition, Bob Ortega brings us up to date with Wal-Mart's worldwide shopping spree and gives us a unique peep behind the doors of the Asda deal and its likely impact on British retailing, shoppers and communities. In Sam We Trust provides a fascinating context for current developments: Ortega's incisive analysis of Sam Walton's controversial rise to power and the creation of the world's most successful retail business makes for a shocking yet compelling read.

Cyber retailing in the UK: the potential of the Internet as a retail channel

A myriad opinions have been propounded to explain how “cyberspace” can be exploited by commercial organisations. For the most part they are speculative, visionary or promotional. This work seeks to redress the balance by focusing on the utilisation of the Internet within the UK retail sector and examining its potential as a new retail channel. The paper presents an exploratory study using qualitative and quantitative methods: an on‐line survey of retail Web activities followed by in‐depth interviews. This approach provides a framework of current retail usage of the Internet and explores retailers’ perceptions of the inhibitors and facilitators to its development. It concludes with an emerging model that explains why current levels of retailing on the Internet are low and provides guidance for retailers wishing to increase their level of Internet activity.

A three‐perspective approach to understanding culture in retail organizations

This article demonstrates the usefulness of applying the multiperspective framework developed by Martin (1992) to the analyses of organizational culture. The paper presents empirical evidence derived from the UK retail sector to illustrate that the culture of retail organizations can be more clearly understood by reference to Martin’s (1992) three perspectives. Moreover, it argues that the organizational members’ perceptions of culture correspond with their respective hierarchical positions. The paper concludes with an exploration of theoretical and practical implications derived from the application of Martin’s (1992) three‐perspective framework.

Tactical publicity or strategic relationship management? An exploratory investigation of the role of public relations in the UK retail sector

Examines the role of public relations within the UK retail sector and seeks to determine whether retailers use public relations strategically ‐ as a means of managing their relationships with key stakeholder publics ‐ or simply as a tactical publicity function. Identifies, in an exploratory study conducted in four major UK retail organizations indicative of the different types of retail institutions within the UK, the main characteristics of the public relations functions and compares these with those associated with each of the four models of public relations identified by Grunig and Hunt (1984). Looks at the relationship between the marketing and public relations functions, analysing whether public relations operates as an independent function free of control from marketing or whether it operates simply as a sub‐function of marketing. Considers to what extent public relations can be said to play a strategically important role within the UK retail sector. Highlights the considerable diversity in the way in which public relations is practised within the retail organizations studied, and suggests the need for more extensive research to identify the reasons for this diversity in the way the public relations function operates within the UK retail sector.

Assessing the role of higher education in meeting the needs of the retail sector

Aims to identify the need for graduate skills in the UK retail sector, and to assess the role that higher education currently plays and can potentially play in meeting these. Uses semi‐structured interviews with managers and graduates of six of the major companies, which demonstrate transferable skills dominate their skill needs. Finds that their need for demonstrated intellect and technical skills is small, and that vocational courses/course content play a definite role, but attributes required are not directly related to specific subject knowledge. Discovers that owing to competitive market place pressures, industry increasingly expects HE to play an active role in providing required skills. Claims that a lack of consensus on the extent to which HE can be held accountable for providing these skills is apparent, and that a clearer strategy for the use of graduate skills is needed, in view of the fact that HE serves a variety of different stakeholders in society with different value systems and objectives.