Jeff Shockley, Radford University
Lawrence A. Plummer, University of Oklahoma
Aleda V. Roth, Clemson University
Lawrence D. Fredendall, Clemson University
This paper subjects to rigorous empirical scrutiny the influence of retail store design responsiveness on firm ROA performance. We posit that on average, retail store systems, which are adjusted dynamically to be responsive to changes in product line gross margin, will improve retail firm performance (ROA). We employ an econometric model to tests our theory using company panel data collected from Compustat, 10-K, and S&P industry reports for “bricks and mortar” store retailers for the period 1994 – 2006.
The study findings/contributions include:
* This is a working paper that will be presented at an invited Retail Operations track at the POMS 21st Annual Conference.