Planning merchandising decisions to account for regional and product assortment differences

Dhruv Grewal, Michael Levy, Anuj Mehrotra, Arun Sharma

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

The last decade has fundamentally changed the face of retailing. The genesis has been increased customer fragmentation, enabling technologies such as the internet and increased competition. In this era of “hypercompetition,” retailers need to have a better understanding of the performance of individual stores so they can more accurately plan their merchandise assortments and set more realistic merchandising goals. In this paper, we determine the performance of retail outlets relative to the “best practice” set of outlets and demonstrate the importance of accommodating both regional and assortment differences. We empirically assess the performance of stores from a major Fortune 500 multinational retailing chain. Multiple inputs and outputs from 59 stores in three regions were used to determine sales goals for two different product categories. The results of three alternative models suggest that incorporating both assortment and regional differences significantly affects both performance and predicted sales volume estimates. Implications and avenues for future research are discussed.

Original languageEnglish (US)
Title of host publicationInternational Series in Operations Research and Management Science
PublisherSpringer New York LLC
Pages469-490
Number of pages22
DOIs
StatePublished - Jan 1 2016

Publication series

NameInternational Series in Operations Research and Management Science
Volume238
ISSN (Print)0884-8289

Keywords

  • Assortment
  • Merchandise assortment
  • Retailing
  • Store efficiency

ASJC Scopus subject areas

  • Software
  • Computer Science Applications
  • Strategy and Management
  • Management Science and Operations Research
  • Applied Mathematics

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  • Cite this

    Grewal, D., Levy, M., Mehrotra, A., & Sharma, A. (2016). Planning merchandising decisions to account for regional and product assortment differences. In International Series in Operations Research and Management Science (pp. 469-490). (International Series in Operations Research and Management Science; Vol. 238). Springer New York LLC. https://doi.org/10.1007/978-1-4899-7684-0_15