Coordination mechanisms in the store opening process

Abstract

Purpose

For many retailers organic growth through the opening of new stores is a crucial cornerstone of the business model. The purpose of this paper is to explore the store opening process conducted by retail companies. The research questions cover: first, the role and organisation of the establishment function in charge of the process; second, the activities and functions involved in the process; and third, the coordination mechanisms applied during the process.

Design/methodology/approach

This research considers the store opening process as a company-wide project, managed by an establishment function, in which internal functions as well as external suppliers need to be coordinated. A multiple case study of eight retail companies is presented, focusing on the organisation of the establishment function, a mapping of the store opening process and the application of coordination mechanisms.

Findings

The role and organisation of the establishment function is described and the store opening process is summarised into 11 main activities to be conducted by either the establishment function or other involved functions. During the store opening process six different coordination mechanisms are utilised, including mutual adjustments and direct supervision, as well as different types of standardisation.

Originality/value

This research seeks to improve our understanding for the store opening process and how it can be managed and controlled in an effective manner.

Citation

Sandberg, E. (2014), "Coordination mechanisms in the store opening process", International Journal of Retail & Distribution Management, Vol. 42 No. 6, pp. 482-499. https://doi.org/10.1108/IJRDM-01-2013-0024