Two pawns in their game - Inventory and customer efficiency

Abstract

This thesis examines efficiency in the retail industry in two different directions. In the first setting, the link between inventory efficiency and performance is examined in relation to firm characteristics and exogenous explanatory variables. More specifically, in addition to general firm-specific characteristics, the effects of chain affiliation and time trends within retail chains is examined. The effects of business environment factors on inventory turnover are examined on the basis of geographic location and market conditions. In the customer efficiency setting, efficiency is studied by observing customers’ in-store behaviours to identify how specific customer characteristics in general, and the use of in-store carrying equipment in particular, are associated with shopper efficiency. These two avenues for detecting important retail efficiency metrics are examined in three individual research papers. The papers empirically demonstrate two different perspectives on efficiency that are important for retailers to be aware of. From this customer and retailer perspective, several dilemmas exist that have been only partly covered in the three papers. This dissertation aims to discuss some of these dilemmas and to demonstrate some of the dualities that exist in the intricate interconnection between the customer and the retailer in the pursuit of efficiency. Overall, the thesis offers new insights, makes significant contributions to the literature and to retail practice in terms of the complex topic of retailer logistical performance and customer efficiency and develops a better understanding of some tenets of eminent and sustainable brick and mortar retailing.