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GfK Marketing Intelligence Review

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1865-5866
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Adding Bricks to Clicks: On the Role of Physical Stores in a World of Online Shopping

Jill Avery / Thomas J. Steenburgh / John Deighton / Mary Caravella
Published Online: 2014-07-16 | DOI: https://doi.org/10.2478/gfkmir-2014-0015

Abstract

E-commerce is gaining ground and leaving the role of traditional brick-and-mortar stores open to question. With this in mind, a team of researchers performed a case study to determine what effects the store openings of one multichannel retailer of fashion, home furnishings and high-end accessories would have on its catalog and online sales. The opening of brick-and-mortar stores had positive and negative effects for the retailer, but complementary consequences clearly outweighed sales drops in individual channels: In the short term, only catalog sales declined slightly. But over time, both the catalog and online channels increasingly benefited from the presence of the new brick-and-mortar stores. Within 79 months, catalog sales recovered to a level that would have been expected had the store never opened and subsequently continued growing more than in a sample without new stores. An enhanced understanding of both positive and negative cross-channel effects helps retailers better anticipate and respond to changes in sales in existing channels when a new one is added. It is the basis for strategically managing a company’s channels as a portfolio rather than as separate entities.

Keywords : Multichannel Retailing; Channel Management; Channel Migration; Direct Marketing; E-Commerce; Retail Stores

About the article

Published Online: 2014-07-16

Published in Print: 2013-11-01


Citation Information: GfK Marketing Intelligence Review, Volume 5, Issue 2, Pages 28–33, ISSN (Online) 1865-5866, DOI: https://doi.org/10.2478/gfkmir-2014-0015.

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© 2014. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License. BY-NC-ND 3.0

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