Bricks plus clicks: the success factors of multi-channel retailing.

Multi-channel and online retailing are becoming increasingly important in the rapidly changing retail environment, resulting in an increasing number of store-based retailers that add an online store to their portfolio. Nevertheless, it is not sure whether and to what extent a multi-channel retail strategy is profitable and will improve competitive position. A key question is whether an online channel leads to cannibalization or expansion of retailers’ sales relative to competition.  We will investigate this by analyzing (i) consumers' spending allocation once they decide to shop online; (ii)  within a category; and (iii) retailers' performance once they decide to add an online distribution channel. For each of the research questions we will investigate the underlying drivers of the effect.