Since the end of World War II, innovations in retail formats have occurred as retailers seek to maximize their financial efficiency.
Proposition 3 further discusses two situations to explain how retailer commodity categories and consumer psychological costs create diversified retail formats.
We find that consumer heterogeneity, retailers' diversified transfer costs and economies of scale are endogenous drivers of prosperous retail formats.
As it grew, the company developed new retail formats, including Sam's Club discount warehouses (1983) and Wal-Mart Supercenters (1988).
No doubt, given its sheer size, incumbency and the unchanging weakness of regulators, Tesco will be able to occupy any emerging retail formats and fashions.
Abroad, the firm's success remains in doubt, as does its ability to make money out of new retail formats at home.
Different retail formats provide different services.
Now we discuss the diversity of retail formats formally.
These conclusions reveal how retail formats response to consumer heterogeneity.
When the overall price level of the retail formats is higher than the general price level, if condition (2) is established, there are diverse retail formats.
Similarly, we can deduce the supply conditions of existence for retail formats as follows.
