What Physical Stores Still Offer Customers in the Digital Economy

Research by Ayşe Çetinel, Gürhan Kök and Robert Rooderkerk on multi-brand retailers shows that the role of the physical store now extends far beyond simply closing a sale. Solving customer problems that online channels can't address is becoming the store's core value — which calls for rethinking not the size of retail space, but its purpose.

The study's authors note that a store creates maximum value only when management sets a clear purpose for each location. That means, instead of applying one formula to every store, investment should be directed selectively — toward product categories where hands-on, in-person experience genuinely matters.

Another key finding is that performance needs to be measured across the customer's entire journey, not just a single channel's metrics. Experience-driven stores can boost overall revenue even while reducing the number of online purchases — by building a deeper connection with the customer, increasing purchase frequency, and having digital channels complement rather than compete with the physical store.

The authors point out that the most successful retailers organize their physical investments not around individual channel metrics, but around company-wide customer value. In other words, the store is no longer just a point of sale — it's becoming the deepest point of connection between a brand and its customer.