Retail Format Usage: Pre-COVID-19 Benchmark Data, Pandemic Practice, and Emergent Influence

Background: COVID-19 brought revolutionary change in consumer retail format behavior. Pre-pandemic, multiple retail formats were available, and consumers showed evidence of preference for particular formats. Then, the disruptions caused by store closures and stay-at-home mandates altered consumer behavior substantially. Aims of the Study: The purpose of this work is to report the results of research on consumer preferences for retail formats as a benchmark for examination of changes in consumer usage of retail formats wrought by COVID-19 and projection of emergent post-pandemic behaviors. Pre-COVID-19, variety in retail formats proliferated. Methodology Employed: Survey methodology captured preferences, practices, and recommendations related to use of retail formats. Research questions included: a) Which retail formats do consumers prefer? b) Which digital tools do consumers use to make purchases? c) Does delivery mode and/or product type influence retail format preference? d) Does retail format influence impulse purchasing behavior? e) Do consumers mix retail formats when making product purchases? and f) What will be the implications of COVID-19 for retail format preference? Results: Consumers reported differences in preferences for online, in-store, catalogue, and phone retail formats. Product type influenced consumer retail format preferences. Retail format influenced impulse purchase behaviors. Consumers used smart phones, laptops, desktops, tablets, email, discussion boards, social media, and social networks as purchasing tools. Conclusions: This study investigated pre-pandemic consumer preferences and usage variables related to retail format. It provides benchmarks for examination of changes resultant from the massive retail disruptions of mandatory store closures and stay-at-home mandates. It further provides a framework for projections of emergent, post-pandemic behaviors. Recommendations: The authors recommend further investigation of consumer retail format use during and subsequent to the height of the pandemic. Comparison of consumer usage pre- and post-pandemic can provide valuable input to retail planning.

When value- and experience-related trade promotions influence retailers’ sales: the moderating role of retail format strategy and channel structure

Purpose As manufacturers and retailers aim to increase return on marketing investments, value- vs experience-related trade promotions gain attention. These two trade promotions become complicated in the presence of different retail format strategies (generalist vs specialist) and channel structures (direct to retailer vs distributors). Building on trade promotion literature, this study aims to show the main effect of value-related and experience-related trade promotions on retailers’ sales and the moderating role of different retail strategies and channel structures. Design/methodology/approach The authors use unique panel data from 8 personal care brands with 1,920 observations to test the hypotheses. The authors investigate how consumer goods manufacturer sells products using different channels structures and retail strategies. Estimated panel regressions provide the empirical evidence and robustness analyzes provide extra confidence to the findings. Findings Results reveal higher retail sales when the manufacturer invests in value-related trade promotions rather than experience-related trade promotions. The results also demonstrate how the manufacturer successfully invests in trade promotion by adequately accounting for channel structure and retail strategy. While temporary price reduction’s positive effect on retail sales is enhanced in generalist retailers (e.g. supermarket stores), shelf display’s positive impact is enhanced in specialist retailers (drug stores). Research limitations/implications The authors used unique panel data accounting for 15 months, limiting the findings. The results supported the investment allocation decisions in each period. However, future research may evaluate the effectiveness over a longer period and thoroughly address each investment’s seasonal effects. Practical implications The authors unveil how retailers achieve higher sales with value-related trade promotions when compared to experience-related trade promotions. The authors also shed light on the way manufacturers design their relationships with generalist and specialist retailers by working in direct and indirect channels. Trade promotions yield better results when the direct channel structure couples with a retailer’s generalist strategy. Originality/value The empirical findings help manufacturers achieve success in trade promotions by developing an equitable evaluation to contrast value- and experience-related promotions accounting for generalist and specialist retail strategies and direct and indirect channels.

The Attitude of Consumers towards Organised Food Retailing: An Application of Attitude-towards-Object Model

Organised retail sector is booming in metros, cities and now even in small towns; and organised food retailing is one of the fastest growing sector among them. The different types of food retail formats have its own characteristics, focus and target market. The customer or consumer has their own criteria to select a particular food retail format. The selection is based on the attitude of the customer or consumer towards the attribute of the retail format. There are many model to find the attitude of customer or consumer towards any product, service and brands. This study is an attempt to find out the customer's or consumer's attitude towards three major food retailing formats i.e Big Bazaar, a hypermarket; Reliance Fresh, a convenience store and Suvidha, a supermarket.

Development of Existing and Alternative Formats of Retail Chains in the Context of the Pandemic

In the current conditions of development of trade relations, one branch of the economy is particularly distinguished from other types of activity, and this is retail chains. We have high expectations for this area to meet basic human needs during the pandemic. The buildup caused by COVID-19 has put retail chains and supply chains on the brink of survival. Nevertheless, at the moment, we can make straightforward conclusion that the Russian food retail has effectively and promptly dealt with the current situation in order to meet the consumer needs. It quickly moved online and established its technological processes to do home delivery. The analysis showed that the volume of orders made online increased in March 2021 fivefold compared to March 2020. In this study, the author employed the methods of statistical and factor analysis. The article revealed the role of network retail in providing the public with the necessary goods and services during the pandemia. The study examined the ways of improving trade policy of retailers who are forced to develop alternative formats of trade under new economic conditions, in particular, online trade. The article provided the classification of retail chains operating in the FMCG retail format (consumer goods).

Consumer Shopping Behaviour among Modern Retail Formats

The objective of this study is to analyze consumer shopping behaviour in different retail formats. Consumer shopping behaviour presents using shopping intention, attitude towards modern retail outlet and shopping habit. Self administered questionnaire was used to collect data. Data was collected from five different retail formats, i.e. hypermarket, supermarket, departmental store, mini market and convenience store. Consumer shopping behaviour is modeled using Structural Equation modeling (SEM), and the difference of behaviour among retail format was tested using multi level Lisrel software. It's found, as can be seen on consumer shopping model, the effect of attitude towards modern retail outlet and shopping habit on shopping intention. However, it's found that there is no difference in this behaviour among hypermarket, supermarket, and mini market.

Consumer Preference towards Choosing EBO vs. MBO with Special Reference to Apparel Retailing

This article has been written with a primary question: ‘With so many choices available in the apparel industry, what drives customers to a particular branded store?’ Although there are various reasons, the store format remains to be an important one, according to extant literature. When brands select their distribution channels, they face the dilemma of choosing a retail format. The study aims to find out which store format (Exclusive brand store or Multi-brand store) is preferable by the consumers and the factors affecting this choice. A survey of 155 people from Bangalore, who have access to branded stores, was conducted and various tests were performed. The results showed that most of the consumers prefer MBO over EBO. The 12 factors identified were reduced into two groups using factor analysis, out of which the attributes relating to the store have more impact on the consumer’s decision than attributes relating to the merchandise.

Store-Related Factors Contributing to Offline Private Label Brands Purchase Intention among Gen Y Customers

The purpose of this study is to examine store-related factors contributing to the purchase intention towards private label brands (PLBs) among Gen Y customers in Kota Kinabalu, Sabah. Representing one of the biggest market segments in Malaysia, Gen Y is considered more open-minded to try new products than Baby Boomers. However, retail research focusing on Gen Y, particularly their buying intention of PLBs product, is scarce. A purposive sampling technique was utilised and a total of 300 questionnaires were distributed among Gen Y shoppers aged 23-39, who frequented supermarkets and drugstores. This study generated 240 usable responses (80% response rate). All the store-related variables were found to have significant relationships with attitude towards purchasing PLBs product, which in turn, affected purchase intention. Attitude mediated the relationships between all the store-related variables and purchase intention. Product category and retail format significantly moderated the relationship between attitude and purchase intention. This study benefits academic and marketing practitioners by expanding on previous literature towards customer behaviour, which the marketing practitioners could benefit from the private label initiative as well as have a better understanding of their target customers to further enhance the sales among the Gen Y customers.

Cost Management of Retail Enterprises under the New Retail Format

With the acceleration of the digitalization process, new retail is also emerging. With its convenient and flexible operation mode, new retail has become the trend of the current traditional retail industry transformation, and it is an inevitable choice for retail enterprises to achieve sustainable and healthy development. Based on the actual situation, this article analyzes some cost management problems which new retail enterprises are facing, and then proposes corresponding solutions to provide reference suggestions for the development of new retail enterprises.

Online versus offline: preferred retail choice for premium brand purchase

PurposeThis exploratory study aims to examine the prevalent triggers that motivate a premium brand purchase in an online vs offline retail format.Design/methodology/approachA binary logit analysis is used to build a predictive model to assess the likelihood of the premium brand consumer seeking an online or an offline platform. Demographic and usage-based profile of the two set of consumers is established through a chi-square analysis.FindingsThree hundred and forty six urban consumers of premium branded apparels residing in two Indian Metros were studied. A predictive model with 89.6% accuracy was validated for distinguishing premium brand buyers who shop at brick-and-mortar store or online platforms. Quality and finish were factors sought by the online buyer, whereas autotelic need, pleasurable shopping experience and social approval were important triggers for an in-store purchase.Research limitations/implicationsThe study posits divergent demographics and motivational drivers that led to an online vs offline purchase. Though interesting and directional, the study results need to be examined across geographies and categories for establishing the generalizability of the findings.Practical implicationsThe study findings indicate that premium brand manufacturers can devise an omni-channel strategy that is largely tilted toward the online platform, as the quality conscious and brand aware consumer is confident and thus open to an online purchase. The implication for the physical outlet on the other hand is to ensure exclusive store atmospherics and knowledgeable but non-intrusive sales personnel.Originality/valueThe study is unique as it successfully builds a predictive model to forecast online vs offline purchase decisions among urban millennials.

Patterns of Location and Other Determinants of Retail Stores in Urban Commercial Districts in Changchun, China

Knowledge of the patterns of location of retail stores in urban areas supports the development of effective urban planning and the reasonable allocation of commercial facilities. Using point of interest data and consumer survey data in three main commercial districts in Changchun, China, this study investigates the spatial structures of commercial districts and the patterns of distribution of retail stores to assess the determinants of the development of retail stores in commercial districts. Kernel density estimation, nearest neighbor index, and Pearson’s correlation analysis were used for this study. The following conclusions are drawn. (1) The spatial distribution of retail stores in Changchun commercial districts generates the coexistence of a concentration in the core area and diffusion in the peripheral area. The emergence of shopping malls has challenged the traditional single-center structure, resulting in the transformation of commercial districts from single-center to multicenter layouts, while also producing a hierarchical trend in development. (2) The Chongqing Road and Hongqi Street commercial districts have a relatively high spatial concentration of retail stores. Retail stores in Guilin Road exhibit distinct characteristics, namely, stores selling textiles, clothing, and daily necessities show the highest concentration, and food, beverage, and tobacco outlets as well as integrated stores show the lowest concentration. (3) The selected locations of the differing categories of stores on Chongqing Road strongly correlate, and textile, clothing, and daily necessity stores show a high correlation with other retail categories. (4) Four main factors affect the development and spatial layout of retail in the commercial districts. First, the interaction between consumer behavior and location choice in retail stores promotes the evolution of retail formats and trends in the development of comprehensive, specialized, and hierarchical retail commercial spaces. Second, the retail format determines the spatial layouts and the historical inheritance of the format. Third, governmental planning and policies lead to the agglomeration and diffusion of commercial activities in different areas. Fourth, such spatial clustering effects are an external driving factor for integration and aggregation among retail formats.