January 25, 2013

Study: Store layout an important variable for retailers




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.”