Document Type

Article

Publication Date

11-1-2017

Journal / Book Title

Journal of Business Research

Abstract

By analyzing retail news published between 2008 and 2011, we examined retrenchment and investment strategies employed by retailers in the U.S. in response to the Great Recession. We found four categories of retrenchment (store closings, buyouts, bankruptcies, and pull backs) and five categories of investment (market expansion, product development, service development, strategic partnerships, and corporate social responsibility). Retrenchment decisions were constrained by retailers' financial strength, whereas investment decisions varied with firms' strategic orientations and resource capabilities. Findings of this study enhance theoretical understanding of underlying factors of specific retrenchment and investment decisions that retailers pursued during a challenging economic time.

DOI

10.1016/j.jbusres.2017.06.018

Published Citation

Mann, M., & Byun, S. E. (2017). To retrench or invest? Turnaround strategies during a recessionary time. Journal of Business Research, 80, 24-34.

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