It is indisputable that the internet has become a necessary component of contemporary multi-channel retail, as more consumers are choosing to purchase goods online each year. As online spending continues to grow, many have called into question the future of brick-and-mortar retail. This thesis seeks to empirically prove that brick-and-mortar retail remains not only relevant, but indispensable in direct-to-consumer business models. The basis of this conjecture is the idea of channel synergism, in which online and brick-and-mortar operations are complementary. This theory is predicated on the emergence of the omni-channel retail, which is characterized by the integration of the various direct-to-consumer (D2C) channels to support cross-channel consumer interaction. To empirically test this hypothesis, key operating metrics were examined over the five year period from 2007 to 2011. By examining profitability trends and several D2C channel relationships, empirical support is developed to substantiate the claim that brick-and-mortar operations are not being driven into obsolescence by the growing prevalence of e-commerce transactions.

Title: A study of how the Brick and Mortar business can utilize Location-based Marketing in Sweden. - Technologies, Strategies, Privacy & Integrity and Receptiveness from a consumer and expert perspective. Date: 2014-05-20 Level: Bachelor Thesis in Marketing Authors: Philip Lagström and Gustaf Stenlund. Supervisor: Klaus Solberg Søilen. Purpose: The purpose of this research is to create an understanding of what location-based marketing is and how brick and mortar businesses in Sweden can use this type of marketing, and how it affects sales and the customer experience. The objective is also to find out how consumers percept location-based marketing and possible privacy and integrity concerns. Theoretical framework: The theoretical framework begins with theory regarding Smartphone usage in Sweden and privacy & integrity concerns. The theory also discusses the brick and mortar business. Further, it discusses what kinds of techniques and methods that are used by location-based marketing today is, and how push and pull strategies can be used within location-based marketing. Method: The research is based on a combination of a qualitative and quantitative study. This was made to get the experts point of view and also the consumers’ perspective. The qualitative part consisted of three interviews with experts in the field of location-based marketing, mobile applications, Smartphone marketing and digital marketing. The quantitative part consisted of a survey with 357 participants Empirical framework: The empirical study consists of interviews and a survey. It begins with the interviews with the three experts; this part involves thoughts regarding location-based marketing within brick and mort, best method of LBM, consumer receptiveness, negative/positive aspects, privacy and integrity and future prospects for location-based marketing. This followed by the results from the quantitative survey with our 357 respondents; the survey gives a consumer point of view on important factors such as Smartphone use, consumer interest regarding LBM, receptiveness, privacy and integrity concerns and loyalty. Conclusion: The conclusion made in this dissertation is that location-based marketing is a great part of the digital marketing mix, and could potentially work well for Swedish brick and mortar businesses. It has potential to create increased value for consumers, which in turn can develop into a loyal customer base. The respondents of our survey are not concerned about their privacy and integrity. However, it could be a devastating blow for retailers if dealt with incorrectly.

It is indisputable that the internet has become a necessary component of contemporary multi-channel retail, as more consumers are choosing to purchase goods online each year. As online spending continues to grow, many have called into question the future of brick-and-mortar retail. This thesis seeks to empirically prove that brick-and-mortar retail remains not only relevant, but indispensable in direct-to-consumer business models. The basis of this conjecture is the idea of channel synergism, in which online and brick-and-mortar operations are complementary. This theory is predicated on the emergence of the omni-channel retail, which is characterized by the integration of the various direct-to-consumer (D2C) channels to support cross-channel consumer interaction. To empirically test this hypothesis, key operating metrics were examined over the five year period from 2007 to 2011. By examining profitability trends and several D2C channel relationships, empirical support is developed to substantiate the claim that brick-and-mortar operations are not being driven into obsolescence by the growing prevalence of e-commerce transactions.

Since the internet became a new marketplace for buyers and sellers, the modernization of e-commerce brings into question whether online retailing can effectively replace traditional brick-and-mortar stores. Recent trends have highlighted the struggling business of physical retailers, yet many continue to operate while also having introduced an online sales channel along with pages on social media to increase engagement with customers. This study challenges the popular assumption that e-commerce is cannibalizing in-store sales opportunities, where online sales grow increasingly at the expense of the conventional method of shopping in brick-and-mortar stores. In examining financial and internet-related data of 50 major U.S. retailers from 2008 through 2013, I run panel data regressions to identify factors that contribute to the growth of in-store sales revenue and the proportion of online sales. My results indicate that retailers operating a clicks-and-bricks model do not suffer from channel cannibalization but may be forming a synergy across channels, as there are significant increases in measures regarding both physical and online retail operations.

Att det har blivit en ökad digitalisering i handeln de senaste 10 åren är ingen hemlighet. Internet har skapat möjligheter som tidigare inte funnits och att handla elektroniskt har blivit en stor företeelse på marknaden. Elektronisk handel, med andra ord e-handel, har ökat kraftigt de senaste åren och förutspås även att bli ännu större i framtiden. Digitaliseringen har gjort att människor har fått nya beteenden och att konkurrensen på detaljhandelsmarknaden har förändrats. Med både förändrat beteende och en annorlunda konkurrens påstås det att detaljhandeln är inne i ett skifte nu, ett skifte som förändrar branschen och med stor sannolikhet påverkar de fysiska butikerna på marknaden. E-handel har gjort det möjligt för minskade sökkostnader och priser, lägre distributionskostnader och att avstånd blir möjliga att sudda ut. Samtidigt har kunder efterfrågat smidiga och enkla affärer vilket har gjort att e-handel har vunnit allt fler kunder.  Syftet med denna uppsats är att se om det blir någon inverkan på de fysiska butikerna inom detaljhandeln när det gäller försäljning, antal sysselsatta och antal arbetsställen när användningen av e-handel ökar i Sverige. Studien baseras på en kvantitativ metod där tidigare studier samt regressionsanalyser utgör grunden. Regressionsanalysen genomförs på data inhämtad från myndigheter samt organisationer och de tre beroende variablerna är omsättning per person i fysiska butiker, antalet sysselsatta i fysiska butiker samt antalet arbetsställen inom detaljhandeln. Resultaten som skattas tyder på att det finns en trend som visar att när e-handelsanvändning ökar så minskar försäljning per person i de fysiska butikerna, det går dock inte att säga att e-handelsanvändningen är det som påverkar försäljningen. Resultatet tyder även på att det inte med säkerhet går att säga att antalet sysselsatta eller arbetsställen kommer påverkas av en ökad e-handelsanvändning i Sverige. / That a digitization has taken place in the retail industry in the last 10 years isn’t a secret. The internet has created new opportunities and electronic commerce has been a large-sized phenomenon on the retail market. Electronic commerce, in other words the e-commerce, has increased sharply in recent years and is predicted to grow even bigger in the future. Digitization has created new behaviors among consumers and new competitive situations on the retail market. With both new behaviors and new competitive situation, the retail industry is changing and with great probability also the brick-and-mortar stores will be affected by it. E-commerce has made it possible to reduce search costs and prices, to have lower distribution costs and make it possible to overcome distance. At the same time, the consumers demand smooth and simple business, which has made e-commerce use even stronger among the customers.  The purpose of this thesis is to see if the brick-and-mortar stores sales, employment or number of workplaces are affected by an increase in the use of e-commerce in Sweden. The study is based on a quantitative method with previous studies and regression analysis as the foundation of the study. The regression analysis is performed with data from retail organizations and the dependent variables in the regression is revenue per capita in brick-and-mortar stores, employment and number of workplaces. The results of the study indicate a trend in the retail market where the revenue per capita decrease in brick-and-mortar stores while the e-commerce use increase, however it cannot be claimed that e-commerce affects the sale in brick-and-mortar stores. The results also indicate that it is not possible to conclude that e-commerce use will affect the number employed or number of workplaces in Sweden.

Between the years 2013 and 2016, e-commerce sales grew as a percent of total retail sales in the United States from 5.8% to 8.5%, an increase of $129 billion. Some brick-and-mortar (B & M) retailers struggle with maintaining the historic levels of revenue in their stores. A multiple case study design with retail store managers was used to understand what factors engage customers to shop at B & M store locations. The consumer-dominant value creation logic was the conceptual framework. Data were collected from semistructured interviews with 5 retail store managers in Texas who demonstrated successful strategies for engaging customers in their B & M stores, and notes from observations. Data from semistructured interviews were analyzed with a traditional method to identify themes. The found themes included fun at work, customer connection, relationship, pride, and genuine care. The implications of this study for positive social change include the potential to enhance the economic vitality and development in the surrounding community by creating additional jobs and generating additional income for members of the community that could be spent in local economies.

It has been shown that in today’s society, businesses will need to consider not only selling products or services, but also experiences in order to fulfil customers’ increasing demand for more stimuli in purchase situations. Additionally, brick and mortar retailers will need to respond to the increased use of online sales channels through finding ways of attracting customers to their stores. One way of responding to both trends can be to practise Experience Marketing and thereby offer holistic, stimulating and memorable customer experiences at every purchase situation. With this insight, this thesis will investigate which specific factors that are perceived as important when creating successful in-store experiences. From this, the aim is to create a framework based on customers’ perceptions that can be useful for brick and mortar retailers when implementing experience marketing. Five propositions of what factors to include in order to create successful experiences are presented. These are tested and further developed through both quantitative and qualitative research. The empirical investigation results in the creation of a final suggested framework including the supported propositions, one new Additional Factor and several suggested subcategories within each factor. The final framework suggests following factors as important when creating successful experience marketing: Store Environment, Employee Characteristics, Senses and Additional Factor.

Background: The retail industry is highly affected by the changes in the world. With the disruptive force of digitalization, more and more of the transactions within retail is moved online as the e- commerce has expanded making the retail industry more competitive. This change has and is forcing many offline retailers to close business around the world but in this change, has new trends emerged. Both online and offline retailers are starting to see the value of having physical stores as well as having an online presence. Doing so creates opportunities for both e-commerce companies and physical retail stores to create value using multiple channels. Purpose: The purpose of this study is to find out how an independent fashion brick and mortar store can create value for consumers through multiple channels to gain a competitive advantage against pure online retailers and larger retail companies. Method: This topic will be studied with a qualitative study based on semi-structured interviews with customers in demographic 18-30 years old with the goal of understanding how customers purchase clothes in different channels to create insights for independent brick and mortar stores. The data were analyzed with the seven steps of Grounded Theory. Conclusion: The results of the research show that independent brick and mortar store have competitive advantages regarding personal service, products, and product assessment. However, many customers want to search for information and inspiration about products online before they shop, even if the actual purchase is made in a store which means that independent brick and mortar stores need to have their products online for that. It was also found that customers want more flexibility between channels. For example, purchase online and pick-up in store. The authors believe that with this changes, independent brick and mortar stores can compete in the 21st century while still maintaining their current advantages.

Digitalization has impacted online retailing heavily, however traditional stores have not changed as much in comparison. Earlier studies have not only suggested how stores could reinvent themselves, but also indicated that brands could have great advantages by doing so. Furthermore, the customer experience and it’s reinforced importance within brick and mortar has been highlighted. It has also been established that the customer experience could be strengthen by implementing advanced technology. Due to the lack of research within the subject and a mainly theoretical discussion about how and why stores implement advanced technology in store, this study aims to investigate from more practical point of view how and why companies implement advanced technology. This study has a qualitative method, by conducting a total of 7 interviews. Five interviews were conducted with employees within different retailing companies implementing advanced technology in store; BMW, Clas Ohlson, Volvo Car Company, Volkswagen and Synsam Group. To continue, two complementary interviews from a rather general market perspective were conducted; one with AMF Fastigheter on their new project The Lobby focusing on the development of the future store and one with Curiat (NZ) Limited a subject specialist on Augmented Reality, which was one of the most common technologies in this study. The study identifies several factors correlating to how and why brands reinvent their physical stores through advanced technologies. In order to implement the technology successfully, such as Virtual Reality, Augmented reality and Interactive Digital Signage, traditional retailers have to modify their business models and their operational skills within the organization. One main motivation as for why traditional retailers implement advanced technology is a changed consumer behavior and market. This puts a new kind of pressure on traditional retailers and stresses the importance of the customer experience. The customer experience and relationships can be strengthened by implementing advanced technology and are two important factors as to why retailers utilize advanced technology in store. Traditional retailers also use the implemented advanced technology as a marketing tool, in order to market themselves as innovative and meet the new market. In addition to this, there has been a change in communication between customer and store. Retailers can use the advanced technology in order to not only interact in a new way with their customers, but also communicate through various of their channels. This creates a smoother and more seamless experience for the customer, and connect offline with online.

The clothing retail industry has developed globally and is today one of the world’s largest industries. In recent years, Sweden has developed a competitive fashion industry, where the new trend in e-commerce is clear. Since e-commerce is a suitable strategy for rapid growth, it is especially important for managers to understand the impact e-commerce has on their businesses. To be able to have the ability to survive in the long-term industrial competitiveness, firms have to continuously improve their knowledge base about the factors that must be considered when choosing sales channels in the clothing retail industry. In this master thesis we have studied and analysed factors that must be considered when choosing sales channels. A literature review was done, where eleven initial factors that affect the choice of sales channels were identified. Thereafter, to conduct a comprehensive empirical study, we conducted eight case studies with semi-structured interviews with companies in the Swedish clothing retail industry, founded no longer than approximately a decade ago to cover the recent developments in the industry. The empirical study resulted in that six factors from the literature were reinforced and that four new factors were identified. These ten final factors were thereafter analysed from two main perspectives: company focus and consumer focus. Finally, the impact of the final factors on the three different sales channels; online, brick-and-mortar and retailing, was discussed. The ten final factors are: Marketing and Customer Loyalty, High Costs, Customer Behaviour, Outsourcing or Insourcing, Managerial Productivity, Intangibility and Tangibility, Fill a Gap, Customer Experience Control, Spread of Distribution and Type of Assortment. Our contribution to previous research is that this study has a more distinct company focus, and due to the development of e-commerce this study has captured the new characteristics of the industry.