Adding store to web: migration and synergy effects in multi channel retailing
Purpose The purpose of this paper is to investigate the topic of multi channel retailing. Specifically, the research intends to determine if and to what extent the opening of physical stores by a former web only retailer reduces or extends overall retail sales, and whether such effects tend to change over time. Empirical analysis focuses on data elaboration from a retailer who has passed from the initial mono channel model (pure online) to a multi channel one with the opening of stores. Design/methodology/approach Through the analysis of an internal data set of a leading consumer electronics retailer applying Probit and Logit estimation techniques, the authors extract information about actual customers' purchases (or rather retail sales) in three newly opened stores and about online purchases (through an e commerce web site managed by the same retailer with the same store brand) by people living in the new store service areas before and after the openings. Findings The paper shows that, for the sin.