Understanding the Impacts of Competitors’ Price-Promotions and Store Exits in the Retailing Industry: Two Essays

In today’s ever-changing retailing environment, competitor behaviour is dynamic: prices are dropped unexpectedly, new merchandise is introduced, and rivals enter and exit. What is still not completely understood is the nature of the impacts of these actions: do they vary across different circumstances? If so, what are these variations and why do they exist? This thesis, comprising of two essays, seeks to provide answers to this overarching research question by studying the differential impacts of temporary (i.e. price promotions) and permanent (i.e. store closures) competitor actions in the retail industry. The research findings contribute to the understanding of the competitive retail landscape and offer guidance for retailers to better respond to competitors’ actions.