The Evolution of Retail Formats: Past, Present, and Future

Abstract

In this paper, authors review the current literature on retail formats and propose a framework for customer-centric retail formats going forward. Specifically, they review literature on how formats compare in their attributes and compete with each other, role of store characteristics and customer behavior in format choice, and developments in multichannel and omnichannel retailing. They propose a conceptual framework for success of retail formats which suggests two paths – either reduce friction in the purchase process or enhance the purchase experience. Finally, they discuss the challenges faced by offline (physical-first) and online (digital-first) retailers and elaborate on strategies they are pursuing to address these challenges.

Keywords: retailing, retail formats, online retail, omnichannel, e-commerce

JEL Classification: M31