A conceptual model for retail productivity

The purpose of this paper is to develop a framework for measuring retail productivity. It intends to identify all the constituents of retail productivity exhaustively, along with their measures and integrate them with a comprehensive model.

The paper summarizes the significant empirical works from the literature along with their study methods and identifies the gaps. The proposed methodology is a combination of various exploratory methods consisting of secondary data analysis, group interviews, depth interviews, observation and questionnaire survey.

A regression‐based conceptual model including each of the output and input variables of retail productivity. It also provides conception logic and measurement method for each of the variables. It identifies the control parameters too and proposes to handle them in the model. The empirical validation provides the significance of various input parameters.

The empirical validation is restricted to one retail format and one vertical (medium‐sized stores and apparel‐life style vertical). However, it provides significant input regarding the way to utilise retail productivity and the strategic directions to improve store level productivity.

The most significant usage of the model is the standardization of retail productivity concept as a performance measurement tool and its applicability in individual retail stores (micro level). Hence, it is possible to determine the reasons for performance of retail stores and develop appropriate as well as effective strategies. The identification and elaboration of the various parameters of retail productivity would help retailers to redefine and focus on key decision areas.

The paper presents the exhaustive framework for retail productivity with data from the Indian retail sector that is applicable at micro level. It provides direct measure of value component (services) in retail output determination.