The Effect of Strategy Similarity on Retailer Performance
(A2026-133021)

AUTHORS

Aijing Song, Yunnan Normal University; Tingting Ying, Nottingham University Business School, University of Nottingham Ningbo China

ABSTRACT

Abstract: Coping with intense competition raises an important question as to whether retailers should take different strategies or similar ones as their competitors to improve performance. According to the strategic balance perspective, a moderate degree of strategy similarity will contribute most to retailer performance. Therefore, the study aims to investigate the relationship between strategy similarity and retailer performance measured by return on assets. The research analyzed the selection of publicly traded retailers mainly operating two retail formats separately, hypermarket/supercenter and supermarket, from Deloitte Global Powers of Retailing 2025. Weighted least squares (WLS) estimation is employed for the analysis. Our study findings show that there is an inverted U-shaped relationship between strategy similarity and retailer performance. It signifies that a moderate degree of strategy similarity can make retailers achieve better financial performance.