The Intrafirm Context of Retail Expansion Planning

Abstract

The benefits that rigorous analysis can have for retail store portfolio management in guiding and informing investment decisions (store expansion; closure; extension; refascia and acquisition) is well established within the economic geography research literature. However, studies of retailers addressing location planning in practice have identified wide variation in the sophistication of techniques and resources employed as well as in terms of the credibility that such research and analysis receives from senior management within the firm. By drawing on a qualitative research project involving some 40 location planning analysts, consultants and managers at UK-based retailers, we differentiate between three approaches to store portfolio decision-making that differ in terms of resource allocation, sophistication and legitimacy. We seek to explain those differences that are embedded within the context of intra-firm relations and social communities by drawing on theories from strategic management concerning core rigidities, lock-in and legitimisation, and review the challenges that location planners face in gaining legitimacy within the organisation, along with strategies appropriate for increasing their acceptance and influence across the firm.

Knowledge management, organisational learning and memory in UK retail network planning

“…While often noting the wide variation in approaches employed, these surveys have emphasised the gradually increased complexity of analysis undertaken -itself often relating to the increasingly professional organisational culture of the retailer and the resources allocated to site analysis (Theodoridis & Bennison, 2009;Wood and Reynolds, 2011a;2011b). However, these surveys have also observed the degree to which formal techniques tend to be combined with experience and intuition.…”

Corporate Social Responsibility in Garment Sourcing Networks: Factory Management Perspectives on Ethical Trade in Sri Lanka

“…Hughes, 2005Hughes, , 2012Hughes et al 2008;Wood and Reynolds, 2011). Data collection involved semi-structured interviews with key managers within Sri Lanka's export garment manufacturing industry and permitted access to various actors at different levels of seniority and responsibility within the firms, including managing directors, operations managers and HR managers.…”

Visitor expenditure estimation for grocery store location planning: a case study of Cornwall

“…This approach allows location planners to take account of the spatial distribution of visitor demand, which, as explored below, may be very different to residential demand. In their recent comprehensive review of the techniques and resources available to location planning teams, Wood and Reynolds (2011) note that many location planning teams are under-resourced or have limited influence on decision making at a strategic level. Consequently, we believe that sophisticated approaches to handle visitor demand are unlikely to be widespread and where used may not be full incorporated in decision making.…”

“…Location planning teams working within major grocery retailers have a long-established and important role in estimating revenue for proposed new stores and in managing the existing store portfolio by monitoring store performance against predicted revenue (Bennison et al, 1995; see also Wood and Reynolds (2011) for a detailed discussion of the role, scope and influence of location planning within a range of UK retailers ). These teams may make strategic (network) or store-level location-based decisions with limited insight into the potential impact of local level visitor spend on store performance.…”