Remodelling the retail store for better sales performance

Abstract

Purpose

The purpose of this paper is to demonstrate the relationship between strategic remodelling of the retail store and the performance of companies in the retail sector.

Design/methodology/approach

The method used was a quantitative and descriptive survey of 93 cases from a sample of 329 retail stores from three chains that had remodelled some of their retail stores.

Findings

The results showed that strategic remodelling improved the performance of the stores surveyed, demonstrating the importance of retail store management as a strategic resource that can improve performance and competitiveness. Applying the balanced scorecard (BSC) perspectives, the retail store strategies had a greater influence on the dimension of internal processes than on other dimensions. Specifically, lighting is the redesign strategy that provides the best performance result.

Practical implications

The findings offer support to managers who are considering modifications to the retail store. Decisions about strategies related to external visual communication, internal layout, internal visual communication, fixtures, painting of the store, lighting, location of the store and visual merchandising can make a difference in the pursuit for better performance across a range of dimensions.

Originality/value

This paper contributes to both the retail strategy and marketing literature by evidencing the link between specific retail remodelling strategies and performance using the BSC dimensions.

Citation

Webber, C.d.C., Sausen, J.O., Basso, K. and Laimer, C.G. (2018), "Remodelling the retail store for better sales performance", International Journal of Retail & Distribution Management, Vol. 46 No. 11/12, pp. 1041-1055. https://doi.org/10.1108/IJRDM-08-2017-0162