2014
MAS 2014 Proceeding
The defence of bricks and mortar retailing
Authors: Roderick Duncan, Terry Bossomaier, Steve d'Alessandro
Abstract
The traditional retailing sector is under pressure through competition from low-cost online retailers. Certain types of retailers, such as stores selling music and videos, have shrunk dramatically with the introduction of new forms of online retailing in Amazon and iTunes, while other retailers including bookstores are threatened. Yet for other products such as mobile phones, bricks and mortar stores are thriving in this new environment. We develop an agent-based model to study the effect of online retailing on bricks-and-mortar retailers and to predict the types of products most at risk of vanishing from bricks and mortar stores. We develop two factors, immediacy and post-sales service, which help predict the products which will move predominantly to online retailing. This paper also examines possible strategies that bricks and mortar retailers can use to adapt to online competition and the possible use of hybrid channels (a combination of online and offline retailers) by consumers.
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