Please use this identifier to cite or link to this item: http://hdl.handle.net/1893/32693
Appears in Collections:Marketing and Retail Journal Articles
Peer Review Status: Refereed
Title: Ease or excitement? Exploring how concept stores contribute to a retail portfolio
Author(s): Egan-Wyer, Carys Jane
Burt, Steve
Hultman, Jens
Johansson, Ulf
Beckman, Alice
Michélsen, Clara
Keywords: Concept store
Retail portfolio
Customer experience
Diversification
IKEA
Issue Date: 8-Jul-2021
Date Deposited: 11-Jun-2021
Citation: Egan-Wyer CJ, Burt S, Hultman J, Johansson U, Beckman A & Michélsen C (2021) Ease or excitement? Exploring how concept stores contribute to a retail portfolio. International Journal of Retail and Distribution Management, 49 (7), pp. 1025-1044. https://doi.org/10.1108/IJRDM-10-2020-0407
Abstract: Purpose The study aims to explore how concept stores (theoretically) differ from other experience-based retail formats, and hence, how they (practically) contribute to a diversified retail store portfolio. Design/methodology/approach Case study based on semi-structured, qualitative interviews with seven IKEA retail managers, three industry experts and 26 customers of IKEA concept stores in London and Stockholm. Findings The concept store represents a conceptual departure from other experiential store formats. It is neither fully experiential in the sense that it is not only about marketing communications nor is it sales or profit-focused. Its aim is to be an accessible touchpoint that reduces friction on a diversified customer journey with its value to the retail portfolio being that it attracts new and latent customers, mitigates existing inhibiting factors and drives them to other touchpoints. Research limitations/implications Ideas about the different characteristics of new store formats and their potential to shape the customer experience are extended. New formats reflect innovation in retailing and are part of a retail portfolio which generates different customer expectations and determinants from traditional store formats which provide the customers' existing reference point. Practical implications The contributions of new formats should be evaluated in light of other existing formats in the portfolio and not isolated. This is particularly true when considering format cannibalisation and the potentially extended customer journey that arises when customers use traditional format stores and new concept format stores simultaneously. Originality/value Previous research, using sales metrics and market-based results as performance determinants, suggests negative outcomes for format diversification. Our study suggests that the contributions of the concept store format should be viewed from an overall customer journey perspective and the “performance” of different format based touchpoints are not best captured through traditional sales evaluation methods.
DOI Link: 10.1108/IJRDM-10-2020-0407
Rights: Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode
Licence URL(s): http://creativecommons.org/licenses/by/4.0/

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