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Journal of the Academy of Marketing Science
Erschienen in: Journal of the Academy of Marketing Science 1/2018

22.07.2017 | Original Empirical Research

The impact of retail format diversification on retailers’ financial performance

verfasst von: Yuying Shi, Jeremy M. Lim, Barton A. Weitz, Stephen L. France

Erschienen in: Journal of the Academy of Marketing Science | Ausgabe 1/2018

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Abstract

For retailers, format portfolio management is a core marketing operation, but has received little attention in the marketing literature. This study analyzes the relationship between format diversification and retailer performance in a global setting, where retailers as part of their geographic expansion process often employ format diversification. The dual strategies of geographic diversification and format diversification substantially complicate the diversification-performance relationship. Using a six year panel data set for leading global retailers, we find a positive impact for geographic diversification, a negative impact for format diversification and a negative interaction for the dual strategies, supporting a single focus diversification strategy. We further show the consistency of our findings using a series of model robustness checks.
Vorheriger Artikel The substitution strategy dilemma: substitute selection versus substitute effectiveness

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Fußnoten
1
We did not rely on the Sagan test statistic for testing the over-identifying restrictions because the test requires the errors to be independently and identically distributed, inconsistent with our error structure.
 
2
It should be noted that the Hausman test is usually conducted to test whether a fixed or random effects model should be used. Our Hausman test statistic does not support the use of the random effects model. However, the Hausman test has two caveats (Wooldridge 2002). First, the test requires a strict assumption of exogeneity. If there is a correlation between independent variables and ε for any time periods, then results for both the fixed effects model and the random effects model are inconsistent. Second, the test is usually implemented assuming constant variance and independent errors. As noted above, our data set has a heteroscedasticity and autocorrelation problem. The Hausman test is not appropriate for our data.
 
3
We kept track of the number of formats employed by the top retailers after the crisis. There is little change in the number of formats employed since 2007.
 
4
It should be noted that brick and mortar retailers with an addition of online channel are not considered to have an additional non-store format. Catalogue retailers also include stores such as JC Penny, who run a large separate catalogue section.
 
5
It should be noted that the trend data are available only after 2004. But our main data starts from 2002. We use the Google Trend data from 2004 to 2009 as a surrogate measure of brand effect from year 2002 to 2007. This difference of the two-year lag can be conceptually justified as the subsequent search reflects the brand reputation accumulated in previous years.
 
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Metadaten
Titel
The impact of retail format diversification on retailers’ financial performance
verfasst von
Yuying Shi
Jeremy M. Lim
Barton A. Weitz
Stephen L. France
Publikationsdatum
22.07.2017
Verlag
Springer US
Erschienen in
Journal of the Academy of Marketing Science / Ausgabe 1/2018
Print ISSN: 0092-0703
Elektronische ISSN: 1552-7824
DOI
https://doi.org/10.1007/s11747-017-0559-0

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