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COVID-19 accelerated change within the UK retail market. It encouraged the growth of online shopping, providing the necessary demand for grocers to invest in their operations, and transformed the economics of their businesses. As innovative new business models emerged, some existing retailers collapsed leading to significant changes on the high street. Landlords were also affected. As some retail tenants struggled to pay their rents, other parts of the sector prospered and sought additional warehouse capacity to cope with rising demand. Not only does this illustrate how different parts of the retail sector faired during COVID-19, but it also demonstrates how the move online has resulted in the emergence of new opportunities.

This empirical study aims to examine luxury fashion retailers' localised multiple channel distribution strategies in China.

Through case studies of 15 participating retailers, qualitative data were collected from 33 semi-structured interviews.

Strong impacts of internationalisation strategies, distribution strategies and channel length towards multiple channel retailing are revealed. Multi-channel retailing is widely employed by firms who have entered China and further developed their businesses through local partnerships and adopted a selective distribution strategy via relatively longer channels. Omni-channel retailing is only suitable for the few retailers using an exclusive distribution strategy through direct marketing and wholly owned customer relationship management. As a dynamic transformation from multi- to omni-channel retailing, cross-channel retailing is adopted by those who are withdrawing from local partnerships and shifting to wholly owned expansions and operations in host markets.

The results are potentially challenged by relatively small sample size.

Practitioners are suggested to adapt multiple channel retailing to their international expansion strategies, distribution strategies and channel length in the host markets.

This paper contributes to the literature in both multiple channel retailing and international retailing by offering insights into the motives, development patterns and suitability of multiple channel retailing in the international retail marketing context.

The purpose of this paper is to explore the extent to which customers evaluate inferior product presentations on a local shopping platform based on the retailer (small and medium-sized enterprise [SME] vs retail chain).

The authors conducted a between-subject online study (N = 728) with a 2 (SME vs retail chain) x 2 (high vs low-quality product presentation) between-subject experimental design. The authors conducted several analyses of variance to analyze the hypotheses and analyses of covariance for a mediating effect.

This study's results show that customers tend to overlook inaccuracies from a retail chain more often than they overlook inaccuracies from SME retailers. The authors show that the perceived competence of the retailer mediates the impact of the retailer's quality on customer purchasing intentions, not only for the presented product but also for the retailer itself.

Based on this study's results, the authors give implications for retailer cross-channel strategies and hint at the importance of emphasizing the retail size.

This paper provides important contributions to the literature on resource-advantage theory by explaining that consumers perceive quality differences within product presentations on online shopping platforms differently with regard to retail chains vs SME retailers. Moreover, the information processing theory helps to provide a theoretical foundation concerning differences in online store quality (via engineered low- vs high-quality product presentations in this study).

By working through the case and assignment questions, students will be able to conduct a marketing environmental analysis to aid strategic decisions; analyse the first-mover advantages of a retail firm and how these can be sustained; comprehend online retail business models and the challenges therein; understand the trade-offs of online/offline retail experiences specific to an emerging market’s beauty and personal care sector; conceptualize and formulate actionable growth strategies that balance the individual and collective requirements of brick and mortar and retail e-commerce environments.

The case is set in 2022, right after Nykaa – the pioneer of beauty and wellness e-commerce platforms in India makes a blockbuster stock market debut in 2021. Starting in 2012 with a disruptive online model for selling beauty and wellness products online in India, Nykaa had come a long way with expansions in physical retail and other segments such as fashion. The firm, which initially aimed to be a virtual store, is now thinking of aggressively expanding in the brick-and-mortar retail space as it opens its 85th retail outlet.

Falguni S. Nayar, founder and CEO of Nykaa, wanted to roll out 300 physical stores targeting 100 cities in India in the next couple of years. She aspired to establish Nykaa as a category leader as the “Indian Sephora” in the beauty and personal care market. Nykaa’s first-mover advantage in the online beauty and personal care marketplace worked well to establish it as a brand with positive endorsements by digital shoppers that enhanced the investment potential with potential financiers. However, the pandemic had brought every physical retailer to the online platform. Most e-commerce platforms dealing in grocery to lifestyle had added personal care products to their existing merchandise.

Additionally, several start-ups had ventured into the online marketplace. Online was a cluttered marketplace with little to no differentiation. In this bloodbath, would the first-mover advantage for Nykaa in the online space still count as a competitive advantage? Nayar was all set to expand Nykaa’s physical presence aggressively. The concern was that the beauty and personal care segment had also moved online as a function of long stay-at-home periods. In the post-pandemic times, would the customer indeed revert to brick and mortar once again? Nykaa was also into product formulations, but so was every big and small player in the space. What was the differentiated winning formula for the consumer’s heart and mind?

The case can be effectively used in foundation courses in marketing and a wide range of specialized courses on marketing management (core/foundation course), retail marketing and e-commerce/digital marketing and e-commerce for B-school learners. The complex decision points faced by an innovative e-commerce start-up firm on its road to market expansion make the case suitable for niche courses such as Marketing for Start-ups. Moreover, learners in executive MBA programs with considerable experience can benefit from the case analysis that balances a growing retail company’s long- and short-run objectives.

Teaching notes are available for educators only.

CSS 8: Marketing.

Online shoppers make product purchase decisions based on product information shown on a retailer's website and potentially in comparison to that seen on competitors' websites. Insufficient, poor quality or missing information about a product can lead to reduced retailer sales. Measuring online product information quality (PIQ) is therefore an essential element in helping retailers maximize their potential success. This paper aims (1) to identify directly quantifiable PIQ criteria, (2) to assess the effects of PIQ and (3) to evaluate the moderating effect of product involvement.

The authors conducted a scenario-based experiment within 3,544 do-it-yourself (DIY) online shoppers from the United Kingdom (UK). Within an 8 × 2 × 2 between-subjects design, the authors manipulated the factors PIQ criteria (8), PIQ level (2) and product type (2).

The findings support that poor PIQ has a negative impact on consumers online shopping outcomes. The authors also found that the effects of PIQ differ between the various criteria, the product category and the level of consumer involvement in the selling process. In the context of product depiction, title readability and product attribute comparability with other retailers' websites a high level of PIQ is required. Moreover, high involvement products need a higher level of PIQ than low involvement products.

This research expands website quality and service failure literature by introducing PIQ criteria and its effects in the context of online retailing. The authors also establish actionable managerial recommendations to assist retailers to embrace and utilize PIQ to better understand their own potential website and thus business improvements.

This paper aims to develop supply chain strategies for the fashion retail supply chain (FRSC), likely to be disrupted by the current pandemic (COVID-19) under physical and online retail stores. The resilient retail supply chain design is proposed under budget allocation and merchandise capacity constraints.

This paper utilises the theory of constraint (ToC) and goal programming (GP) to address the COVID-19 impact on FRSC. The budgetary and capacity constraints are formulated with a constraint optimisation model and tested with six different priorities to deal with the physical and online stores. Next, all priorities are developed under different FRSC business scenarios. The ToC-GP-based optimisation model is validated with one of the Indian fashion retail supply chains.

The proposed optimisation model presents the optimal retailing strategies for selling fashion goods over physical and online platforms. The multiple scenarios are presented for developing trade-offs among different strategies to maximise the retailer's merchandise performance. This paper also highlighted the strategic movement from high merchandise density stores to low merchandise density stores. This implies a reduction of sales targets and aspiration levels of both online and physical fashion stores.

The proposed model is validated with one of the fashion retailers in India. Other nations or multiple fashion retailers might be considered for more generalisation of findings in the future.

This research helps fashion retail supply chain managers deal with consumer demand uncertainty over physical and online stores in pandemic times. Limitation: Other nations or multiple fashion retailers might be considered for more generalisation of findings in the future.

This is the first study that considered the impact of COVID-19 on the retail fashion supply chain. The effect of physical and online platforms is mainly discussed from consumer marketing perspectives, but an inventory and resilience perspective is missing in earlier studies. The role of merchandise planning is highlighted in this study.

After reading and discussing the case, the participants would be able to: apply 7S and VRIO framework for online furniture retail; evaluate the profitability of horizontal versus vertical marketplaces for selling furniture online; articulate the challenges faced by online furniture retailers; discuss the applicability of technology to enhance customer experience in online furniture retail; and discuss the omni-channel strategy which online furniture companies can adopt.

Although furniture has traditionally been an unorganized category, the online furniture platforms have been on an upward curve since past few years. Digitization of economy and usage of smartphones to access internet had given a thrust to online purchases. This case on Wakefit Innovations Private Limited is intended to provide the readers with the business and marketing insights of selling furniture using online platform. The readers will be able to understand how retailing furniture using e-commerce is full of challenges and how various marketing activities have helped Wakefit improve their customer base. The readers can discuss the advantages and disadvantages of horizontal versus vertical e-commerce marketplaces and various challenges associated with online furniture retailing. Whether Wakefit should continue setting up experience centres and the benefits that could accrue by usage of virtual reality, augmented reality and data analytics are additional dimensions which can be discussed by the readers. The case will benefit the professionals in understanding the challenges and marketing strategies used by online furniture retailers and the same can be replicated by other players in this sector.

This case is suitable for students enrolled for full credit course on e-commerce at post graduate level. The case can be discussed towards the middle of the course once the students have studied different formats of e-commerce marketplace.

Teaching notes are available for educators only.

CSS 8: Marketing.

COVID-19 disrupted the lives of consumers across the globe, and the retail sector has been one of the hardest hits. The impact of COVID-19 on consumers' retail choice behaviour and retailers' responses has been studied in detail through multiple lenses. Now that the effect of COVID-19 is abating, there is a need to consolidate the learnings during the lifecycle of COVID-19 and set the agenda for research post-COVID-19.

Scopus database was searched to cull out academic papers published between March 2020 and June 6, 2022, using keywords; shopping behaviour, retailing, consumer behaviour, and retail channel choice along with COVID-19 (171 journals, 357 articles). Bibliometric analysis followed by selective content analysis was conducted.

COVID-19 was a black swan event that impacted consumers' psychology, leading to reversible and irreversible changes in retail consumer behaviour worldwide. Research on changes in consumer behaviour and consumption patterns has been mapped to the different stages of the COVID-19 lifecycle. Relevant research questions and potential theoretical lenses have been proposed for further studies.

This paper collates, classifies and organizes the extant research in retail from the onset of the COVID-19 pandemic. It identifies three retail consumption themes: short-term, long-term reversible and long-term irreversible changes. Research agenda related to the retailer and consumer behaviour is identified; for each of the three categories, facilitating the extraction of pertinent research questions for post-COVID-19 studies.

Acknowledging previous scholarly focus on functional attributes in understanding technology acceptance behaviour, the current study aims to offer a novel perspective by integrating eight different dimensions of utilitarian and hedonic attributes to examine their influence in delivering a holistic web-based retail shopping experience.

The research model was tested and validated through data collected from 370 online shoppers across both hedonic and utilitarian product ranges. Hypotheses were tested using covariance-based structural equation modelling with multi-group analysis to examine the moderation effect.

The findings strongly support the model confirming eight new utilitarian and hedonic dimensions that influence web-based retail shopping behaviour. The findings also confirm that hedonic attributes remain important even for utilitarian product purchasing.

The key managerial implication is the demonstrated need to balance utilitarian and hedonic attributes in web-based retail platforms, where previously, there has been an overemphasis on functional features. Web-based retailers should consider the optimal blend of utilitarian (e.g. information quality) and hedonic (e.g. aesthetic) attributes in the design of a retail shopping site, irrespective of the product category.

This study integrates multiple dimensions of utilitarian and hedonic attributes into a single model and highlights the interplay of these attributes, thus extending the technology acceptance model. This paper also advances scholarship through its identification of attribute impact across different product categories.

Despite retail digitisation and research efforts focussed on online and omnichannel shopping, there is insufficient knowledge regarding retail patronage formation in the grocery category, where in-store sales dominate. This study analyses the retail patronage formation in grocery in-store fill-in shopping.

The authors designed a questionnaire to measure retail patronage behaviour, consumer satisfaction (CS), store attributes evaluation and e-retail usage. Then, the authors analysed the path structure for retail patronage behaviour formation using structural equation modelling. Additionally, they performed a mediation analysis using the bootstrap method and a moderation analysis based on a chi-square difference test.

This study provides three main findings. First, the authors' model has two ways to increase Share-of-Wallet (SOW). One is to increase Share-of-Visits (SOV) and another is to increase CS amongst non-users of e-retailing. Second, the results of the moderation analysis suggest the influence of customers' use or non-use of e-retailing on SOW formation. Third, service evaluation plays an interesting role in the overall model: the lower the assessment of service, the higher the SOV; the higher the evaluation of service, the greater the CS; the greater the CS, the higher the SOV.

The authors proposed the framework for the relative retail patronage formation in grocery fill-in shopping to examine the relationship between two relative patronage indicators (SOW and SOV) in the path structure and the mediating effect of CS and the moderating effect of e-retailing usage on retail patronage formation.