Store Closings and Retailer Profitability: A Contingency Perspective

Retailers constantly face the decision of whether to close existing stores and/or to open new ones. Closing a store may reduce a retailer’s costs, while opening a new store may increase revenue. Thus, it is far from obvious which action yields the maximum profit. Furthermore, retailers need to align these store-by-store tactical decisions with their overall distribution strategies to achieve a superior performance. Using a sample of 157 public...