The Strategy Digest
The Strategy Digest / Management Science

Exploring the Competitive Dimension of Omnichannel Retailing

Management Science · Academic Paper · 1 Apr 2022 · Empirical research · Paywalled · Editor's rating: No stars

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

Read the original ↗

More on this topic