The Effect of Online Channel Addition on Store Performance: Empirical Evidence from Chinese Chain Retailers

With the rapid development of e-Commerce and takeaway platforms, retailers have gradually developed multi-channel operations. However, limited empirical studies explored the effects of an online channel offered by takeaway platforms on the store performance. Does an online channel addition have a synergy effect or a cannibalization effect on store performance? We empirically investigate these effects by analyzing a large dataset including diverse samples collected from multiple retailers across various regions. The dataset includes 2115 stores across 25 retailers for 10 months that includes two types of retail formats and covers 16 provinces and 21 cities of China. We study the impacts of the newly introduced online channel on the incumbent offline channel and the overall store performance. The empirical results reveal that the online channel addition mainly has a synergy effect. Specifically, for the overall store, it has a positive effect on the sales and product variety, whereas it has a negative effect on the basket size. Surprisingly, an online channel addition also has a positive effect on the offline sales. Our study adds novel values to multi-channel retailing literature by empirically researching the cannibalization and synergy effect of a new type of online channel, offered by takeaway platforms. It can provide insights for retail enterprises who are interested in introducing O2O model.

Retail atmospherics effect on store performance and personalised shopper behaviour: a cognitive computing approach

PurposeThe best possible way for brick-and-mortar retailers to maximise engagement with personalised shoppers is capitalising on intelligent insights. The retailer operates differently with diversified items and services, but influencing retail atmospheric on personalised shoppers, the perception remains the same across industries. Retail atmospherics stimuli such as design, smell and others create behavioural modifications. The purpose of this study is to explore the atmospheric effects on brick-and-mortar store performance and personalised shopper's behaviour using cognitive computing based in-store analytics in the context of emerging market.Design/methodology/approachThe data are collected from 35 shoppers of a brick-and-mortar retailer through questionnaire survey and analysed using quantitative method.FindingsThe result of the analysis reveals month-on-month growth in footfall count (46%), conversation rate (21%), units per transaction (27%), average order value (23%), dwell time (11%), purchase intention (29%), emotional experience (40%) and a month-on-month decline in remorse (20%). The retailers need to focus on three control gates of shopper behaviour: entry, browsing and exit. Attention should be paid to the cognitive computing solution to judge the influence of retail atmospherics on store performance and behaviour of personalised shoppers. Retail atmospherics create the right experience for individual shoppers and forceful use of it has an adverse impact.Originality/valueThe paper focuses on strategic decisions of retailers, the tactical value of personalised shoppers and empirically identifies the retail atmospherics effect on brick-and-mortar store performance and personalised shopper behaviour.

How store managers’ employee climate perceptions affect frontline employee, customer and store performance outcomes: an examination in the small-store setting

Purpose The purpose of this paper is to examine the effects of store managers’ employee climate perceptions on frontline employee (FLE), customer and store performance outcomes in the small-store setting. Design/methodology/approach This study derives the findings from a multi-source data set acquired in partnership with a North American-based retailer that includes survey responses from 1,133 store managers, 5,591 FLEs and 16,488 customers. This paper matches survey responses to corporate records and store sales and operations data. Findings This study finds that store managers’ employee climate perceptions affect FLEs both directly and indirectly, through store manager social support behaviors. This paper tests the boundary conditions for these findings by examining the moderating effects of store-level FLE tenure heterogeneity and competitive intensity. Study results provide partial support for the hypothesized relationships with regard to FLE tenure heterogeneity, but not competitive intensity. Research limitations/implications This research is subject to many of the limitations common to a survey-based study. While the use of one retailer provided opportunities to examine store-level performance data, future research would benefit by using a more expansive data set spanning several companies and industries. Moreover, as the current study was set in the small-store setting, future research should explore how store managers’ influence fluctuates depending on store size and the mechanisms through which organizational priorities flow through other management levels (e.g. department managers) in large retailers. Practical implications Study results provide managerial guidance regarding the implementation of an employee climate for the delivery of an enhanced customer experience and superior financial performance. Originality/value Although researchers have paid considerable attention to employees’ psychological and organizational climate perceptions, this study makes a unique contribution by examining the effects of store managers’ employee climate perceptions on FLE, customer and store-level outcomes.