Assortment Mix Choice Within Shop and Drive: Customer Arbitrage on the Competition Between Private Label and National Brand

Abstract

The retailing world looks less and less like it did years ago. The development of Private Label (PL) in almost every consumer product category and the advent of Omni-channel retailing have changed dramatically the landscape. However the evolution of Private Label has tender to be mixed and the competition between National Brand (NB) and Private Label becomes stronger and stronger. The Omni-channel retailing is offering to the retailer the opportunity to push, within the product mix, PL products in difficulties, mainly when managing a physical outlet and an attached-Drive. Investigation and analysis of data between two channels of a distribution chain (Study 1) and a customer survey on mix-clients (Shop & Drive) (study 2) demonstrate inconsistencies of the Drive product-mix choices and the moderating role of the inventory shortage and out of date good policy. The results suggest to the retailer which products to be referenced or delisted.