Analysis: Big-box retailers think clusters

06/12/2006 | HBS Working Knowledge

Wal-Mart Stores and other big-box retailers have learned that localization and standardization must strike the perfect balance for the retailer to be successful. The clustering strategy has worked for these retailers because grouping items by association simplifies decisions, protects economies of scale and enables manageable, modular operations that capture most of the benefits of customization.

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