The Future of Physical Stores: Creating Reasons for Customers to Visit

Abstract

This research presents a novel, conceptual perspective on distinctive opportunities available to retailers with a physical location to create reasons for customers to visit the physical store. A multi-method approach is used, where we combine the study of more than 25,000 online announcements of new approaches implemented in physical stores with 12 interviews with retail experts from around the globe. The result is an integrative framework with five key benefits and 14 subdimensions which retailers can use to create reasons for customers to visit their physical store. The five benefits are discovery, convenience, customization, community, and shoppertainment. In discussing the framework, the authors provide rich examples which illustrate different ways retailers can establish these benefits. This research also details the value and challenges of collaborating with partners when implementing new approaches to leverage such benefits. The paper concludes with a discussion of external and internal contingency factors that can impact the decision (of when) to implement (which) new approaches and offers a list of questions for further research.