A retailer’s optimal store layout is the result of balancing
the interests of two different types of markets – consumers and suppliers, says
new research co-written by a University of Illinois business professor.
According to Yunchuan “Frank” Liu, a retailer’s strategic
manipulation of store layout is driven by an incentive to balance the shopping
process of “fit-uncertain consumers” and the pricing behavior of upstream
suppliers.
“Retailers face two different kinds of markets – the
consumers who buy goods, and the manufacturers that supply goods,” he said.
“It’s a very important variable for local retailers and marketing managers to
play with in this era of increased competition with online retailers, and it
has important implications for companies and consumers.”