Retail Mix Differences between Off-line and On-line Stores of the Same Chain

Abstract

Diversification of store formats and dispersion of boundaries between retail channels - facts arising from the expansion of the scope of Internet - have led many retailers to move from single channel to multichannel operation. With this in view, the present study aims to identify and analyse the differences in retail components - assortment, price, price ranges and services - between physical and virtual stores operating both channels. The research was developed in four phases: (a) definition of retailers and location of stores, selection of departments and product categories; (b) data collection; (c) data analysis and identification of differences; (d) semi-structured interviews with company leaders. A sample of 756 models in six product categories shows that virtual retail is more competitive than physical retail as to assortment (91% higher), prices(13% to 15% lower), more attractive payment terms(3-12 installments without interest) and width of price ranges. If these competitive advantages are kept along with the guarantee of credibility in delivery and possibility of exchange or refund, virtual retail is bound to have a consistent growth perspective proportionally greater than that of physical retail.

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