The Role of Logistics in Retailers' Corporate Strategy : A Driver for Growth and Customer Value

• This article explores the role of logistics and supply chain management (SCM) in retailers’ corporate strategy and is based on reviewing multiple qualitative case studies of companies in the Swedish food retail sector. The article proposes that the role of logistics for what is referred to in this paper as modern retailers is twofold: to create profitability and to support growth and market expansion. International modern retailers are empirically compared with similar companies in the Swedish market. The dominating Swedish food retailers have taken command in the food supply chain but are primarily concerned with traditional logistics roles in cost cutting. This role is perfectly fine as long as the strategic intent of the companies is focused on market retention and not on geographical expansion and/or new marketing or store concepts. We argue that the success of modern retailers in terms of growth rate, profitability, and market expansion is explained to a large extent by the role of logistics in corporate strategy—when the role for supporting growth and increasing customer value from high-performance supply capabilities is a driver for market expansion. However, in many of our cases the traditional logistics roles of cutting costs and lead-times is still the dominating pattern that limits the possibility of expanding into new markets. Better knowledge of logistics’ role in retail corporate strategy can help companies develop and improve their strategic intent as well as redefine the role of logistics.

Subject headings

TEKNIK OCH TEKNOLOGIER  -- Maskinteknik -- Annan maskinteknik (hsv//swe)

ENGINEERING AND TECHNOLOGY  -- Mechanical Engineering -- Other Mechanical Engineering (hsv//eng)

Keyword

Logistics

retailing

Supply Chain Management

growth

profiability

food sector

Industrial organisation, administration and economics

Industriell organisation, administration och ekonomi

Publication and Content Type

ref (subject category)

art (subject category)