Blurring the lines between physical and digital spaces: business model innovation in retailing
Abstract
Traditional retail practices are under stress as retailers ponder various ways of setting up a sustainable omnichannel business model. A significant challenge in their endeavor relates to the blurring lines between physical and digital worlds. This article analyzes three retailers’ exploratory efforts of alternative physical retail spaces. There are five key innovation areas to revamp for such a retail store: in-store technology, the role of sales associates, leveraging a mobile channel, data analytics, and collaborations. Moreover, physical retail space can serve as an aggregation hub that connects various retailer-customer interaction points across physical and digital spaces.
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The physical territory becomes an experience-based hub, connecting touchpoints, facilitating seamless integration, CX, and value creation, and challenging the locus of retailers' value proposition, creation, and delivery.
“Therefore, the physical territory becomes an experience-based hub, connecting touchpoints, facilitating seamless integration, CX, and value creation, and challenging the locus of retailers' value proposition, creation, and delivery (Alexander and Kent, 2022;Jocevski, 2020).”
From Retail futures: Customer experience, phygital retailing, and the Experiential Retail Territories perspective (2025) · cites this paper as Jocevski, 2020
Cites
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KUMAR, N., STERN, L. W., & ANDERSON, J. C. (1993) · Academy of Management Journal · doi:10.2307/256824 · Cited by 2,467 · see citing works
Customer engagement: exploring customer relationships beyond purchase.
Vivek, S. D., Beatty, S. E., & Morgan, R. M. (2012) · Journal of Marketing Theory and Practice · doi:10.2753/mtp1069-6679200201 · Cited by 2,089 · see citing works
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Yin, S., Zhang, N., Ullah, K., & Gao, S. (2022) · Systems · doi:10.3390/systems10030072 · Cited by 242 · see citing works
Alexander, B., & Varley, R. (2025) · Journal of Retailing and Consumer Services · doi:10.1016/j.jretconser.2024.104108 · Cited by 87 · see citing works
- Authors
- Jocevski, M.
- Affiliations
- KTH Royal Institute of Technology, Stockholm, Sweden
- Venue
- California Management Review
- Publisher
- SAGE Publications
- Published
- 2020-09-01
- Volume
- 63
- Issue
- 1
- Pages
- 99-117
- ISSN
- 0008-1256
- 2162-8564
- Cited by
- 71
- References
- 2
- Language
- en
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