We document a causal response of local retail prices to changes in local house prices, with elasticities of 15–20 percent across housing cycles. These price responses are largest in zip codes with ...many homeowners and are driven by changes in markups rather than local costs. We argue that markups rise with house prices because greater housing wealth reduces homeowners’ demand elasticity, and firms raise markups in response. Shopping data confirm that house price changes affect the price sensitivity of homeowners, but not that of renters. Our evidence suggests a new source of business cycle markup variation.
In Nicaragua and elsewhere in Central America, small-scale farmers are weighing the risks of entering into contracts with supermarket chains. We use unique data from cooperatives supplying ...supermarkets to study the effect of supply agreements on producers’ mean output prices and price stability. We find that prices paid by the domestic retail chain approximate the traditional market in mean and variance while mean prices paid by Walmart are significantly lower than the traditional market. However, the Walmart contract is found to systematically reduce price volatility. We find some evidence, however, that farmers may be paying too much for this contractual insurance against price variation.
Many service firms deliver services via a mix of internally developed and delivered (i.e., insourced) and externally developed and delivered (i.e., outsourced) service processes. Service process ...outsourcing is especially common in e‐retailing. Portions of e‐retail customer ordering processes and delivery processes can be digitized and contracted to third‐party vendors. Via outsourcing, service systems change from dyadic to triadic. Prior research examines consumer perceptions of dyadic (consumer to e‐retailer) outcomes, but little research considers service co‐delivery with outsourcing partners (i.e., triadic systems). Literature also does not focus on joint associations of service process outsourcing and customer traffic with e‐retailer operations. We analyze several years of data on North American e‐retailers. We first examine factors associated with e‐retailer outsourcing levels, for front‐end and back‐end service processes. We observe customer traffic is positively associated with future outsourcing. We then examine how outsourcing moderates associations between contemporaneous customer traffic and e‐retailer operational performance, as measured by numbers of processed orders, website response times, and customer satisfaction. Results suggest outsourcing levels are associated with operational outcomes, yet surprisingly, high outsourcing and high traffic jointly may not benefit e‐retailers.
Since the turn of the century especially small, local retailers struggle with the advent of e-commerce. It is hence no surprise that the retail sector is one of the hardest-hit sectors in the current ...pandemic. To understand the short- and longer-term impacts of COVID-19 on retail, we conducted two surveys to understand ongoing changes in the sector. By contrasting changing consumer behavior with the actions taken by local retailers, we assess whether the current pandemic is potentially a catalyst for e-commerce in Belgium. We do this based on a newly constructed framework of e-retail accessibility, as the differences between online and physical retail require a revision of the traditional economic geographical perspective on retail performance as introduced by Christaller (1933). We conclude that the COVID-19 pandemic holds ample opportunities for an increase in the three components of e-retail accessibility, but that a lack of professionalism might prevent traditional local retailers to retain a share of the expanded online market. This could well mean the final blow for local brick and mortar shops if, as is predicted, the share of online shopping in total retail expenditure remains high after the pandemic.
Buy‐one‐get‐one‐free (BOGOF), a ubiquitous sales promotion scheme by which consumers get two items for the price of one, encourages consumers to buy and waste food. An alternative promotional scheme ...is one where consumers receive a coupon for a second item available for free at a later time. Our work is motivated by British supermarkets which, facing criticism from lawmakers for running BOGOF promotions on perishables, started a “BOGOF Later” campaign with the claim that it would reduce the amount of waste. Food waste is indeed a very pressing issue, which has not yet been explored in connection to sales promotions. We compare the impact of these promotion schemes on a retailer's profit as well as on the amount of product wasted at the retail and household levels. We consider two possible applications: unexpected high inventory of a fresh product with a short shelflife and excess leftover inventory for an item at the end of its season or product life.
We propose a two‐period newsvendor model which captures the sales‐boosting effect of promotions, the postpromotion sales drop due to satiation, the coupon‐redemption behavior, and the increased consumer wastage rate from BOGOF promotions. We obtain analytical comparisons of order quantity, profit, and waste across the different promotion schemes and use numerical experiments to generate further insights. We find that, in general, BOGOF promotions are profitable ways to liquidate inventory. In many instances, the increase in waste at the consumers' homes is offset by the decrease in waste at the retail store. As a result, BOGOF promotions often constitute “win‐win propositions” by simultaneously increasing the retailer's profit and decreasing total waste. Overall, our results paint a more favorable picture of the BOGOF promotion scheme than commonly perceived and suggest that its environmental criticism emanates from a too narrow and too consumer‐centric view of the waste problem.
This paper studies an integrated network planning and operation problem of sustainable closed-loop supply chain (CLSC) under demand uncertainty with particularly interest in the configuration of ...retail network. The problem is modeled as a two-stage stochastic program which is further extended to evaluate the impact of various carbon polices on planning and operation decisions of the CLSC. A branch and bound based integer L-shaped algorithm has been proposed to solve these models. Extensive numerical experiments are conducted and impacts of carbon policies are analyzed. Sensitivity analysis is carried out and several managerial insights are drawn.
•Consider an integrated network planning and operation problem of sustainable closed-loop supply chain with retail network configuration.•Model the problem and its extension under various carbon policies into a two-stage stochastic program.•Propose a branch and bound based integer L-shaped algorithm to solve these models.
Online retailers seek to motivate their customers to switch from web-based stores to retail apps as using the latter as a shopping channel has many benefits for retailers compared to web-based ...stores. This study aims to examine the drivers of customers' intention to switch from web-based stores to retail apps by applying the Stimulus-Organism-Response (S–O-R) model. The moderating role of habit was investigated. Data were collected from 389 Malaysian individuals through an online survey and analysed using the partial least squares technique. The results indicated that performance expectancy has a significant influence on switching intention and is driven by mobile characteristics. Furthermore, effort expectancy has a positive effect on both performance expectancy and switching intention and is triggered by visual complexity and aesthetic quality. The moderating effects of habit on the associations between performance expectancy, effort expectancy and switching intention were not supported. The findings extend the literature on retail apps by exploring the switching intention drivers and testing the moderating effect of culture, which have received less attention. The results enable retail apps' developers and marketers to strategise retail apps development and marketing activities in a way that encourages current web-based stores’ customers to use retail apps as a better alternative.
•To identify the drivers of switching from web-based stores to retail apps.•Performance expectancy is driven by mobile characteristics.•Effort expectancy is triggered by visual complexity and aesthetic quality.•Habit does not offset the influence of performance expectancy and effort expectancy on switching intention.
Antimicrobial resistance (AMR) is a global emerging problem for food safety and public health. Retail meat is one of the vehicles that may transmit antimicrobial resistant bacteria to humans. Here we ...assessed the phenotypic and genotypic resistance of non-typhoidal Salmonella from retail meat collected in California in 2019 by the National Antimicrobial Resistance Monitoring System (NARMS) Retail Food Surveillance program. A total of 849 fresh meat samples were collected from randomly selected grocery stores in Northern and Southern California from January to December 2019. The overall prevalence of Salmonella was 15.31 %, with a significantly higher occurrence in Southern (28.38%) than in Northern (5.22 %) California. The prevalence of Salmonella in chicken (24.01 %) was higher (p < 0.001) compared to ground turkey (5.42 %) and pork (3.08 %) samples. No Salmonella were recovered from ground beef samples. The prevalence of Salmonella in meat with reduced antibiotic claim (20.35 %) was higher (p < 0.001) than that with conventional production (11.96 %). Salmonella isolates were classified into 25 serotypes with S. Kentucky (47.73 %), S. typhimurium (11.36 %), and S. Alachua (7.58 %) as predominant serotypes. Thirty-two out of 132 (24.24 %) Salmonella isolates were susceptible to all tested antimicrobial drugs, while 75.76 % were resistant to one or more drugs, 62.88 % to two or more drugs, and 9.85 % to three or more drugs. Antimicrobials that Salmonella exhibited high resistance to were tetracycline (82/132, 62.12 %) and streptomycin (79/132, 59.85 %). No significant difference was observed between reduced antibiotic claim and conventional production in the occurrence of single and multidrug resistance. A total of 23 resistant genes, a D87Y mutation of gyrA, and 23 plasmid replicons were identified from resistant Salmonella isolates. Genotypic and phenotypic results were well correlated with an overall sensitivity of 96.85 %. S. infantis was the most resistant serotype which also harbored the IncFIB (pN55391) plasmid replicon and gyrA (87) mutation. Data from Northern and Southern California in this study helps us to understand the AMR trends in Salmonella from retail meat sold in the highly populous and demographically diverse state of California.
•Higher prevalence of Salmonella in chicken than that in ground turkey, pork, and beef.•Antimicrobials that Salmonella highly resistant to were tetracycline and streptomycin.•S. infantis from chicken exhibited higher multidrug resistance than other serotypes.•A strong correlation exists between phenotypic and genotypic resistance of Salmonella.
PDF
