Cumulative impact of category management on small retailers
International Journal of Retail & Distribution Management
ISSN: 0959-0552
Article publication date: 11 July 2016
Abstract
Purpose
The purpose of this paper is to determine the performance impact for small, local retailers by the means of category management (CM) practice and implementation. The authors utilized survey methodology to investigate both the immediate and cumulative impact of CM on several regional retailers.
Design/methodology/approach
The results suggest CM practices have a positive impact on the performance of small, local retailers. category captain (CC) and minor supplier (MS) performances are also positively related to CM execution. CM practices, however, do not have a direct significant influence on MS performance, but rather have a cumulative impact through CC and CM performances.
Practical implications
Small retailers should implement CM principles informally to match with their specific limited resources and management structures. Additionally, results from this study also suggest that local retailers may benefit from leveraging suppliers through tighter relationships encompassed within CM.
Originality/value
This research is the first to empirically test the immediate and cumulative impacts of CM practices on small, local retailers, and to determine their implications. Cumulatively, small retailers have a large impact on developed economies with a particularly large impact on employment, therefore major retail initiatives such as CM merit scholarly attention.
Keywords
Acknowledgements
The authors appreciate the generous support received from the Institute for Supply Management (ISM) to conduct this study. The authors also thank the reviewers for their helpful advice and comments.
Citation
Hamister, J.W. and Fortsch, S.M. (2016), "Cumulative impact of category management on small retailers", International Journal of Retail & Distribution Management, Vol. 44 No. 7, pp. 680-693. https://doi.org/10.1108/IJRDM-09-2015-0142
Publisher
:Emerald Group Publishing Limited
Copyright © 2016, Emerald Group Publishing Limited