The new retail model: global reach demands omni-channels

Abstract

Purpose

To cope with online competitors and new consumer behaviors, retailers need to hybrid digital and physical offerings to implement an omni-channel business model. This constitutes a digital transformation of the traditional business model. However, business cases on how traditional retailers are shifting from multi-channel to omni-channel retailing are lacking. This paper aims to explore the different issues and organizational paths during the transformation of a business model.

Design/methodology/approach

This study is based on a qualitative multiple case study of five retailers with a global reach currently implementing an omni-channel business model.

Findings

This research sheds light on three main issues encountered by retailers and the different underlying decisions when moving toward an omni-channel business model. The first relates to revenue attribution across channels, which involves rethinking traditional key performance indicators to give incentives to stores when promoting digital offers. The second issue concerns the supply chain decisions associated with cross-channel operations. The third issue relates to the delicate balance between global reach (digital channel) and local reach (specific store) for communication on social media and marketing decisions on pricing. This study provides empirical evidence about the variety of choices that retailers make to cope with the issues during the implementation of an omni-channel business model.

Originality/value

This work explores the issues faced by established firms when moving toward a new business model that is the hybridization of two existing business model managed separately. It provides comprehensive and clear illustration of how to manage such a business model transformation process that can be used by both business strategy practice and academic research.

Citation

Do Vale, G., Collin-Lachaud, I. and Lecocq, X. (2022), "The new retail model: global reach demands omni-channels", Journal of Business Strategy, Vol. 43 No. 6, pp. 339-349. https://doi.org/10.1108/JBS-02-2021-0026