IMPROVING PRIVATE LABEL MERCHANDISING: HOW STORE LAYOUT CHOICES AFFECT SALES

Abstract

The major objective of this research is to conduct an empirical analysis of how feasible it is for retailers to enhance PL merchandising, given the limitations imposed by their current organizational structure. This research uses a structural equation model to examine data obtained from general merchandising managers to see whether their ideas hold up. Conclusions show that a combination of centralized merchandising authority and store collaboration between the merchandising and retail divisions drives PL's merchandising development and, by extension, the company's competitiveness. Store owners' collaboration leads to better PL merchandising, and outcome-based merchandiser control bolsters this claim. But this study's results showed that outcome-based control did little to curb the harmful effects of monopoly retailing. To extrapolate these results to the shop as a whole, it could be instructive to include data from at least two additional departments in the store about the interdepartmental organization and cooperation. It will also continue to be difficult to collect objective financial statistics like sales, profitability, or market share of PL items in order to independently verify the value that PL adds to a shop or company. Managers who care about the quality of their PL merchandising efforts should familiarize themselves well with their merchandisers' efforts and habits. When it comes to inspiring the company's salespeople, management should constantly be on the prowl for fresh ideas. Following the principle of never-ending development, this research explores the effect of structural elements on the quality of PL merchandising to provide a fresh perspective on retail merchandising management. Using experimental analysis of the interactions between several components of retail organization design, this study sheds light on the rising importance of retail merchandisers, who are often overlooked in PL literature, and contributes to our understanding of the organizational design-strategic behavior connection.