E-Commerce versus Store Loyalty: An Explorative Study of the Toy Industry

Abstract: This study explores how brick-and-mortars toy retailer face the growing competition thatthe e-commerce is bringing to the market. It was found that the toy industry is reallysensitive to the increasing power online retailers are gaining, and that it is affecting theirstore loyalty. The foundation of this study is interviews of managers and salesman, indirect contact with the clients and their behavioural evolution.e-commerce has been previously studied through other academic researches, but wefound that its impact on brick-and-mortars store loyalty have been left aside and deservedto be studied.The purpose of this study was to explore the relationship between e-commerce and brickand-mortars, along with understanding it. On a second time, determining if the storeloyalty of brick-and-mortars would be affected so bad by e-commerce that it would meanthe end of the traditional way of retailing. We also aimed to provide solutions, elementsthat could be generalize and applicable for the entire industry, on how brick-and-mortarsshould react to face this growing competition that is online retailing. To meet this purpose,we conducted three interviews in which the respondents shared their thoughts andreflections. The research question we inquire to answer is: “How is the rise of ecommerceimpacting store loyalty for the brick-and-mortars in the toy industry?”.It was found that the brick-and-mortars, in the toys industry, are threatened by the ecommercebecoming more popular towards clients. However, it is no foregoneconclusion, and the interviews we conducted demonstrated that there is room for brickand-mortars in this industry, if they find how to adapt themselves to this new type ofcompetition. Another finding that came out of this study is the importance of bringingadded value to your store, in order to keep your store loyalty at a good level and to notget affected by e-commerce. Future researchers are recommended to develop this subjecton focusing on the customer point of view, or on the overall digitalisation of the retailindustry to get a broader perspective.