Mash It Up! Exploring the Phenomenon of Retail Mash-Up and the Survival of the Physical Retail Place in a Digitalised World

Abstract: Forces such as globalisation, digitalisation and changes in consumer behaviour have led to a discussion among practitioners as well as scholars whether the physical retail place will stay relevant or even exist in the future. One way for brick-and-mortar retailers to stay competitive is to adopt new and innovative business models and formats, alongside a focus on the customer experience and how to optimise the physical place to stimulate feelings in a way which cannot be achieved online. One phenomenon which is fairly new and unexplored is the retail mash-up where several retail components are combined to offer a mix of products and services in the same place. The main purpose of this thesis was twofold. Firstly, due to the novelty of the retail mash-up phenomenon, we aimed to theoretically frame the concept and encourage further research in the field. Secondly, we aimed to provide a comprehensive understanding of the phenomenon by exploring the vitality of an engaging customer experience in order for the physical retail landscape to survive. To achieve the stated purpose, three research questions were formulated, which focus on the role of a retail mash-up as a means of contributing to the survival of the physical retail place, how to create a superior customer experience through a retail mash-up and the main challenges for a mash-up retailer. As a first step towards fulfilling the purpose and answer the research questions, a literature review was developed by studying relevant retail literature which can be related to a mash-up format. Further, an explorative and descriptive approach is adopted which was found to be most suitable for the aim and nature of the study. The chosen research strategy is a qualitative case study of how a retail mash-up and its operations is managed by constructing an offering consisting of multiple parts. The unit of analysis is the Stockholm based retailer Urban Deli which combines several parts in one concept. The empirical material was collected through a multi-method approach consisting of interviews with Urban Deli employees as well as observations of the physical atmosphere and marketing communication material. The analysis of the empirical material was conducted by connecting empirical material to the literature review, but also includes a more abstract discussion where no literature was suitable due to the novelty of the research area. Based on our research, we can conclude that the retail mash-up has a greater potential to meet desires of customer engagement than traditional retailers due to the combination of offerings which leads to the possibility to inspire, educate and influence consumers. Further, we conclude that the retail mash-up, if managed correctly, has the potential to contribute to the survival of the physical retail place.