Is it game over for physical retailers? : A study on Swedish video game industry

Abstract: Purpose - The purpose of this study is to extend the understanding of the business model of video game retailers using online and physical stores focusing on the impact of digital platforms on the retailing industry within the context of video game industry considering different actor’s perspectives like retailers and consumers. Design/methodology/approach - This is a multiple-case study based on deductive reasoning. In this qualitative study, two cases of click-and-mortar retailers operating in the Swedish video game industry have been considered along with feedback from customers. Online personal interviews and semi-structured interviews have been conducted with retailers and customers respectively. Both primary and secondary data have been used to conduct the study. Findings - Findings show that video game retailers need to encourage engagement through incentives and other activities in order to create value and change up their formats and sales strategies through pricing to reach new customers and focus on design of their online store fronts to convey trustworthiness.  Research limitations - A major limitation has been the COVID-19 pandemic spreading during the writing of this paper, which resulted in companies backing out to refocus their efforts. Another limitation has been the legal aspect as companies owned by bigger publishers denied to take part in the study to avoid revealing sensitive information. Practical implications - It offers some insightful practical suggestions to retailers who are struggling hard to adopt digital transformations in the industry. Originality - Authors’ proposed research model, based on Sorescu et al. (2011)’s retail business model and the empirical findings, contribute in the less explored domain of research on business models from retailer’s perspectives. Moreover, it adds values in industry specific study like the video game industry in Sweden considering all actors, which is argued as scarce.