Online Retailers Opening Brick and Mortar Stores and the Impact on the Customer Base: The Case of NetOnNet

Abstract: During recent years, technology has played a crucial role in shaping the retail industry. Digitalisation and e-commerce are seen as the future of retailing. However, big online retailers have shown increasing interest in offline shopping by heavily investing in brick and mortar stores. The strategy of a retailer making use of both offline and online channels is called omnichannel strategy. This study investigates why online retailers are investing in physical stores and what is the impact of this decision on their customer base. The study uses a two-step research. First, a case study on the Swedish retailer NetOnNet is conducted to confirm the theoretical framework and build the research model. Then, a quantitative research with questionnaire is used to investigate the impact of an omni-channel strategy on the consumers’ attitudes towards the retailer. The results show that awareness and control are the factors most affected by an omni-channel strategy. Instead, having both an online and offline presence does not have a relevant impact on the factors trust, perceived risk and personalisation.