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New Functions of Physical Stores in the Age of Omnichannel Retailing

Part of the Springer Series in Supply Chain Management book series (SSSCM,volume 8)

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.

Keywords

  • Retail operations
  • Omnichannel
  • Strategic customer behavior

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Notes

  1. 1.

    Source: https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf.

  2. 2.

    Cross-selling effect is significant in practice. According to a recent UPS study, among those who have used an in-store pickup option, 45% of them have made a new purchase when picking up the purchase in store (UPS 2015). Also, it is estimated that, on average, when a customer comes to the store intending to buy $100 worth of merchandise, they leave with $120 to $125 worth of merchandise (Washington Post 2015).

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Gao, F., Su, X. (2019). New Functions of Physical Stores in the Age of Omnichannel Retailing. In: Gallino, S., Moreno, A. (eds) Operations in an Omnichannel World. Springer Series in Supply Chain Management, vol 8. Springer, Cham. https://doi.org/10.1007/978-3-030-20119-7_3

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