Measuring retailer performance: Towards an understanding of productivity

Abstract

This paper argues that there is not a satisfactory measure of retailer performance. Too many measures are based on accounting and financial measures. These measures do not, however, account for the underlying forces that affect bottom-line performance. To fully understand retailer performance, its productivity must be measured. Here, the concept of productivity is reviewed with regards to retail firms, specifically focusing on input and output constructs, as well as parametric and non-parametric measures of productivity. A research agenda and managerial implications are also presented.