Abstract
Grocery stores typically contain hundreds of product categories. Physically arranging these product categories among a limited number of store aisles and shelves is a challenging task. We propose a multi-category demand model that considers physical locations of product categories to be important determinants of consumers’ purchase incidence decisions in these categories at the store, and examine two issues: (1) to what extent does store layout influence shopping basket decisions? (2) how should the store layout be re-designed to achieve optimal profit? Our analyses suggest the retailer can significantly increase store profitability by re-organizing retail layout configurations.
| Original language | English |
|---|---|
| Pages (from-to) | 152-162 |
| Number of pages | 11 |
| Journal | Journal of Business Research |
| Volume | 124 |
| DOIs | |
| State | Published - Jan 2021 |
Keywords
- Multi-Category Demand Models
- Purchase Incidence Decisions
- Retail Shelf Effects
- Store Layouts
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