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Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1999

Abstract

What does cyberspace mean for physical retail space? Has on-line shopping changed the fundamentals of retailing? And how should managers evaluate new in-store technologies? In this article, the heads of Marks and Spencer, Neiman Marcus, and Karstadt join two distinguished academics to look at what''s in store for the bricks-and-mortar store. There''s no doubt that new technologies have made retailing more complicated and more competitive. Using the Web, for example, consumers can conceivably sidestep their corner store and patronize shops across the country or around the world. Eventually, they might forsake retailers altogether, shopping directly from manufacturers. By the same token, though, managers can use technology to magnify the benefits of their location-using Web sites to show, for example, the retail topography of a local town and to highlight when stores that sell particular products will be open. And new in-store technologies promise managers-and customers-increased efficiency and more knowledgeable service. It''s too early to predict how these new technologies will play out. But the contributors suggest that the fundamentals of retailing really haven''t changed. Whether they know it or not, consumers still weigh the same factors when determining where to shop: scope of product assortment, price, convenience, service, and ambiance. The Internet has just added another layer of urgency to an already established agenda-forcing managers to examine their priorities in newly creative ways.

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Abstract

What does cyberspace mean for physical retail space? Has on-line shopping changed the fundamentals of retailing? And how should managers evaluate new in-store technologies? In this article, the heads of Marks and Spencer, Neiman Marcus, and Karstadt join two distinguished academics to look at what''s in store for the bricks-and-mortar store. There''s no doubt that new technologies have made retailing more complicated and more competitive. Using the Web, for example, consumers can conceivably sidestep their corner store and patronize shops across the country or around the world. Eventually, they might forsake retailers altogether, shopping directly from manufacturers. By the same token, though, managers can use technology to magnify the benefits of their location-using Web sites to show, for example, the retail topography of a local town and to highlight when stores that sell particular products will be open. And new in-store technologies promise managers-and customers-increased efficiency and more knowledgeable service. It''s too early to predict how these new technologies will play out. But the contributors suggest that the fundamentals of retailing really haven''t changed. Whether they know it or not, consumers still weigh the same factors when determining where to shop: scope of product assortment, price, convenience, service, and ambiance. The Internet has just added another layer of urgency to an already established agenda-forcing managers to examine their priorities in newly creative ways.

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