Exploring the Competitive Dimension of Omnichannel Retailing
A competitor's launch of buy-online-pick-up-in-store service reduces a rival retailer's sales in both its online and physical channels, with the impact varying by customer distance to market.
Summary
Akturk and Ketzenberg analyze nearly 50 million transactions from a department store chain and find that when a major competitor launched a buy-online-and-pick-up-in-store service, the focal retailer's sales fell in both its online and brick-and-mortar channels. Online losses stemmed from the competitor's added shopping assurance and fast delivery, while store losses came from customers researching online and buying offline elsewhere. The
Editor's opinion
Narrow retail-competition econometrics (single BOPIS launch), not a firm-strategy lever.
Key concepts
Omnichannel retailing · Buy-online-pick-up-in-store · Competitive threat