The promise of digital technology in brick and mortar retail

Abstract

In this thesis we discuss the profound impact that technology is having on brick-and-mortar fashion retail. Retailers that (i) understand the implications of these changes and (ii) can adapt their retail business models to the new paradigm of the marketplace will be successful. Most retail research concentrates on online retail. Instead this research discusses how technology can add value to brick-and-mortar retail. Retail is a crucial component of the U.S. economy. U.S. retail sales in the United States were $4.36 trillion USD in 2012. The greatest portion of retail sales growth has come from online sales, which is 5.2% of total retail sales. The line between brick-and-mortar and online retail is beginning to blur. At the same time retailers are trying to ensure that the overall consumer experience is seamless at all customer touch-points. This is becoming more difficult, since the Internet and Smartphones have changed the way in which consumers and retailers interact. Therefore, when addressing the Omni-channel retailers must frame this as an organizational change process, since this piece of the equation is just as important as the technological component. Additionally, we consider how the retail selling process might translate into digital retail. Lastly, this paper examines the explosive growth of the mobile app industry and how the fashion retail industry can benefit from this.