Optimal Ordering Policy for Retailers with Bayesian Information Updating in a Presale System

In this study, we investigate inventory allocation and pricing strategies for retailers by incorporating demand information into the issue of inventory allocation during the presale period. In a presale system, retailers offer presale goods at a price lower than the retail price. By offering products at a discount, retailers may attract additional demand. In addition, this system enables retailers to reduce the uncertainty of market demand and establish a strategy for inventory allocation based on the results of presales. A Bayesian approach was employed to analyze and update demand information, and inventory allocation was formulated as a newsvendor problem to determine the optimal policy that maximizes retailer profit . A numerical analysis was conducted to validate the effectiveness of the proposed strategy. Results suggest that the proposed strategies can support retailers by more accurately predicting demand and achieving higher profits with less inventory. Furthermore, retailers can experience greater benefits from risk-averse customers than from risk-neutral customers.

Traditional US retailers that can adapt will flourish

Significance Walmart had also joined Microsoft to bid for TikTok’s US assets, seeing the video-sharing app boosting its digital media business. The legacy retailer’s transformation provides a counter-narrative to the ‘retail apocalypse’ story and underlines the Darwinian evolution of the sector that underpins the consumption-driven economy. Impacts Retail demand will remain depressed until employment returns to pre-recession levels, which may not be until well into 2021. The pandemic will amplify the weaknesses of retailers that were struggling before COVID-19. Chapter 11 bankruptcies will rise among indebted discretionary retailers such as apparel stores, especially in the mid-priced bracket. Real wages will remain subdued and income inequality is likely to rise; this will sustain discount retailers and own-label brands.

Availability and Nutritional Content of High Energy and High Protein Milk for Malnourished Older Adults

Objectives Malnutrition in older adults reduces quality of life and is increasing in prevalence in many countries. Fortified milk (milk powder added to whole milk), typically forms part of guidelines globally for adults at risk of malnutrition. Protein-enriched fresh milk (PEM) may be a simpler option as it is ready to use. This study aims to investigate the availability and nutritional content of fortified milk and PEM. Methods The 7 largest supermarket chains (by UK market share) were surveyed in-store and online in a large city over 2 weeks in December 2019. Two were discount retailers and 3 did not offer online shopping. For each chain, a large, mid-size and convenience store type were randomly selected, if present within the city. In total 15 stores were visited (5 large, 7 mid-size and 3 convenience). Price and nutritional information were recorded on a pro forma for all milk powders and PEMs in-store and online. The energy & protein content of a 200 ml portion of fortified milk (made as per guidelines with milk powders found) and cost/g of protein was considered and compared with PEM and standard whole milk. Results Six brands of skimmed milk powder (SMP), 1 brand of whole milk powder (WMP) and 3 brands of PEM were found. SMP was the most available (5 large & 5 mid-sized stores), followed by PEM (2 large and 1 mid-sized store), whilst WMP was only found online. The 3 convenience stores and 2 discount retailers did not stock any milk powders or PEM. Energy in 200 ml portions ranged from 90 – 224 kcals and protein from 8.0 – 14.2 g. Fortified milk made with SMP had the highest protein content (Mdn = 13.8 g, IQR = 13.5 – 14.2 g), double that of standard whole milk. Fortified milk made with WMP had the highest energy content (224 kcals) but less protein than fortified milk made with SMP (12.0 g). PEM had the lowest energy (Mdn = 96 kcals, IQR = 90 – 98 kcals) and lowest protein content (Mdn = 9.4 g, IQR = 8.0 – 10.0 g). Cost/g of protein was highest for fortified milk made with WMP (Mdn = 2.5p, IQR = 2.3 – 2.7p), followed by PEM (Mdn = 2.0p, IQR = 1.9 – 2.5p) and lowest for fortified milk made with SMP (Mdn = 1.8p, IQR = 1.8 – 2.2p). Conclusions Based on nutritional content, availability and price, the preferred option found was fortified milk made with SMP; enriched fresh milks did not compare favourably for any of these criteria. Convenience and discount stores had poor availability of the products surveyed. Funding Sources Self-funded.

Toward Wal-Mart

The book concludes with an examination of the relocation of department stores to suburban shopping centers and the Sears, Roebuck, and Company affirmative action cases. Mass suburbanization, the rise of discount retailers such as Kmart and Wal-Mart, and urban decay transformed department stores. Black workers found that the gains they had made in downtown department stores had virtually disappeared as department stores followed their preferred clientele—the white middle class—to the suburbs. Here, stores were able to return to their former racial practices in spaces that were inaccessible via public transportation, deemed private property, and prohibited civil rights demonstrations. The Sears cases thus reveal the ways that the department store movement modified its tactics, approaches, and strategies. These cases also exposed the industry’s ongoing transformations, ones that revolutionized, or rather diminished, the status of retail work and department stores, and facilitated the reconsolidation of racial discrimination.

Best Buy: Creating a Winning Customer Experience in Consumer Electronics

After a successful run for many years as a resilient consumer electronics giant, Best Buy was under intense pressure at the end of 2014. Even as competitors like Circuit City melted away, Best Buy had been able to withstand the onslaught of online behemoth Amazon and discount retailers like Target and Walmart. However, its competitive position was threatened as online shopping became more popular, particularly among millennial customers. With a new leadership team, Best Buy had recently undertaken bold initiatives to expand and refine its online presence and position itself for success. These initiatives had produced encouraging results, but Best Buy needed to do more to stem the loss of market share to Amazon and to become more relevant to millennial customers. To address these challenges, Best Buy approached the Kellogg School of Management to solicit ideas from student teams by sponsoring a Business Challenge competition. The teams came up with several strategic initiatives. Best Buy needed to evaluate these initiatives on two criteria: First, how well did these initiatives leverage Best Buy's privileged physical assets (stores, salespeople, and Geek Squad services staff) to create a winning customer experience? Second, how effective would these initiatives be in attracting and retaining millennial customers?

The Impact of Economic Regulation on Retail Sector: Regulation of Business Hours of Large Discount Stores in South Korea

Recently the large discount retailers (LDRs) including large discount chains (e.g., Emart, Homeplus, and Lotte Mart) and super supermarkets (SSMs) have been at the center of disputes in the retail industries in Korea. The 2012 Distribution Industry Development Act has allowed the head of a city or county to regulate the business hours between large mega-retailers and small and family-run stores in the neighborhood. The regulation of the business hours of the large discount retailers may have heterogeneous effects on their sales depending on various contexts of the market situation. The reduction of the business hours assumes a significant negative effect on the amount of sales of LDRs. However, the degree of reduction may significantly differ from how the LDRs respond to the regulation. The reduction of sales of LDRs is natural if LDRs affected by the regulation do not make any effort to promote sales. On the other hand, if LDRs try to maintain their sales with various marketing strategies and resources, their sales may not decrease and even relatively increase compared to the size of the sales for LDRs that are not affected by the regulation. In addition, although the regulation of the business hours for LDRs can reduce operating hours, their sales may increase due to an increase of market demand in some growing places. For instance, the sales in LDRs located at the market place where new large housings and apartments have been growing may increase. The increasing demand derived from the new population growth can cancel out the decrease of the sales from the regulation of the business hours. Our findings, relying on using DID method before and after the regulation, show three different types of the impact of the regulation change on the sale of LDRs across five regions including decreasing, constant, and increasing patterns.

Innowacje w zakresie interakcji z klientem i komunikacji marketingowej w handlu dyskontowym

The aim of the study is to identify and characterize innovative forms and means of marketing communication, as well as new ways of interactions implemented by discount retailers. The method of critical analysis of literature and case study research are applied. Discount networks effectively changed the image of “cheap stores” using new forms and means of marketing communication. The (re)positioning strategy and building a strong brand are connected with increasing frequency and intensity of contact with the brand, inspiring and educating consumers, as well as engaging them.

Positioning fast moving luxury goods in a discount environment

Purpose – This paper aims to understand how a fast moving luxury good like whisky is typically positioned within South Africa’s discounted retail environment and how this positioning could be improved. So doing this paper introduces an econometric valuation model to establish the relative efficacy of contending extrinsic cues in the explanation of whisky prices. Design/methodology/approach – An ordinary least squares regression model is developed from a data set of 122 whiskies drawn from the 2014 festive-season catalogues of two large South African discount retailers. In estimating the whisky pricing function, the hedonic contribution of the following input variables is estimated: age in respect of blended whiskies and single premium malts, in-store supply, claims of retail exclusivity, branding, country-of-origin and packaging formats. Findings – Age effects as they relate to single malts, and mass produced grain whiskies offer the greatest explanation of price, while scarcity effects are observed, along with claims of retail exclusivity which are found to reduce product value significantly. Country-of-origin and packaging however have low to negligible effects. Originality/value – To producers and marketers of whisky, these findings offer insight as to which extrinsic factors could be better amplified, modified or excised if the product is to be optimally positioned. Implications are explored.