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This paper aims to examine empirically whether and under what organisational design conditions retailers can benefit from private label (PL) merchandising improvement.

The study tests hypotheses using a structural equation model and data obtained from general merchandise managers at 190 supermarket retailers in Japan.

The results reveal that both centralised merchandising authority and store cooperation between merchandising and store divisions motivate PL merchandising improvement, which strengthens PL competitiveness. In addition, outcome-based merchandiser control strengthens the positive relationship between store cooperation and PL merchandising improvement. However, regarding centralised merchandising authority, it is found that outcome-based control had no significant moderating effect.

To generalise the …