REVOLUTIONIZING RETAIL: THE IMPACT OF TECHNOLOGY STRATEGIES ON OPERATIONAL PERFORMANCE

Abstract

This dissertation comprises three chapters, each focusing on a different technology used to facilitate operations and performance in the retail industry. In the first chapter, I examine virtual try-on (VTO) technology in the eyewear industry. VTO has gained traction among both pure online and dual-channel retailers. My results indicate that VTO significantly improves overall performance, particularly benefiting dual-channel retailers. This unexpected result is likely due to the facilitation of webrooming, where shoppers research products online but make purchases offline. VTO, thus, helps retailers to retain webrooming customers, mitigating the risk of lost sales to competitors. Furthermore, this study highlights the contributions of VTO to retailer resilience during unexpected disruptions. These findings underscore VTO’s role as a critical tool for maintaining business continuity. The second chapter explores mobile consumer scanning technology (MCST) for grocery retailers. Using traffic and sales data, I examine the impact of MCST on in-store customer dwell time, average transaction size, and number of customer visits. The findings reveal that MCST leads to a reduction in in-store dwell time. Moreover, the technology results in increased customer visits. However, MCST also leads to a decrease in spend per shopping visit, as the technology allows customers to track spending as they shop. Extended analyses further reveal that MCST alters daily shopping patterns and increases retailer’s sales volume. These findings advance the literature on the application of consumer-centered retail technologies, highlighting both theoretical and managerial implications from the implementation of MCST. The last chapter focuses on design technologies for furniture retailers. Fit risk significantly impedes furniture sales, since consumers may be reluctant to purchase furniture if they are unsure how it will fit into their homes. Retailers use pre-sales practices, like room planners, augmented reality (AR) technology, and online (human) interior designers to mitigate fit uncertainty. Post-sales practices, in particular, lenient return policies, further address fit concerns. Analyzing data from 102 U.S. furniture retailers over five years, I find that pre-sales and post-sales practices independently enhance sales performance but often act as substitutes. Moreover, extended analysis reveals complex interactions among the pre-sales and post-sales practices in producing online and offline sales.