Retail Network Analysis through the Branch

Retail operations of supermarkets chains, hold a very important position in supply networks due to the dominant position that retailers hold in the downstream supply chains. Current literature agrees that there are less works on his area. The present study is a second flagship study, investigating branch network variables. Using a mixed research design (descriptive and exploratory) the study employed hoteling’s, retail location to establish the relationship between branch location and branch network expansion. The study used a sample size of 300 respondents in supermarket retail operations. With a response rate of 61%, the findings reveal that branch location is significantly related to branch network expansion and that supermarket retailers should ensure that good locations were identified through different search methods lowering distribution costs. Ideal locations were identified to be in malls and next to distribution centers. The study results propose that branch location is a significantly variable to be used in developing an ISM model for branch network expansion.