New Functions of Physical Stores in the Age of Omnichannel Retailing

Abstract

In the omnichannel era, physical stores are far more than a mere selling channel. As one of the major consumer touchpoints, stores have gradually taken up new functions. For example, with the advent of omnichannel initiatives such as Buy-Online-Pickup-in-Store and Click-and-Collect, stores are becoming fulfillment centers where customers pick up their online orders. In addition, many stores are being transformed into physical showrooms where customers can evaluate products offline before making the purchase online. In this chapter, we review recent research on the effectiveness of these innovative functions of stores. We hope to motivate both practitioners and researchers to rethink the role of physical locations in the increasingly connected world.