Placeless Store or Ubiquitous Stores?

New Technological Frontiers in Retailing

Eleonora Pantano

and Saverino Verteramo

Department of Marketing, Branding and Tourism, Middlesex University London,

The Burroughs, Hendon, London, NW4 4BT, U.K.

Department of Mechanical, Energy and Management Engineering, University of Calabria,

via Bucci 46c, 87036 Arcavacata di Rende (CS), Italy

Keywords: Placeless Store, Ubiquitous Store, Ubiquitous Computing, Innovation Management, Technology

Management, Retailing.

Abstract: Retailing is subject to a continuous innovation triggered by the constant progresses in technology. The new

technologies are dramatically changing the way for searching, comparing, choosing and buying products, by

providing new exciting and more effective shopping experience. Among the available technology-based

innovations for retailing, especially advancements in networking systems and ubiquitous computing provide

a totally new scenario where competing. In particular, these ones develop new shopping environment not

limited to the traditional physical points of sale, by becoming a promising area for research. This paper aims

at investigating the new competitive scenario, by emphasizing the shift from e- to m- to u-store, and

outlining possible future directions in a placeless shopping scenario.

1 INTRODUCTION

Retailing is currently subjected to a continuous

innovation triggered by the constant progresses in

technology. In the one hand, these are dramatically

changing the way for searching, comparing,

choosing and buying products, by providing new

exciting and more effective shopping experience; in

the other one, they provide retailers with new tools

for market seizing and sensing, and service delivery.

(Bennet and Savani, 2011; Ngo and O’ Cass, 2013;

Demirkan and Sphorer, 2014; Pantano and

Timmermans, 2014; Pantano, 2014).

These technological innovations further modify

role and function of physical store in retail settings,

which is no longer the one contact point between

firm and client. As a consequence, the innovative

force in retailing increases the competitive pressure,

while the complexity and the risks in the emerging

scenario growth (Pantano, 2014).

For instance, the proliferation of e-stores

introduces the electronic market for competing, by

enlarging the traditional offer of a physical point of

sale through internet (Bourlakis et al., 2009).

Similarly, the diffusion of smartphone offers another

channel for shopping based on mobile networks and

applications, designed for an easier faster, and

funnier access to products (Lai, and Chuah, 2010).

Moreover, mobile technologies can be integrated

with additional tools, ad Quick Response codes

(QR), Near Field Communication (NFC), image

recognition, augmented reality, 3D functionalities,

contactless systems for increasing the functions and

services. The ubiquitous retailing emerges as an

evolution of mobile stores based on the adoption of

ubiquitous computing, by creating a new ubiquitous

scenario for shopping from mobiles (Pantano, 2013).

Therefore, from a strategic point of view, new

markets and customer can be interrelated while

integrating new services satisfying also the tacit

consumers’ needs, which can be addressed (Zawslak

and al., 2012; Pantano and Timmermans, 2014).

Therefore, a new question arises in the emerging

technology-enriched scenario: which will the future

retail scenario be?

The aim of this paper is to shed lights on the

actual innovative competitive scenario, by

evaluating the shift from e- to m- to u-store, and

outlining possible future directions in a placeless

shopping scenario.

173

Pantano E. and Verteramo S..

Placeless Store or Ubiquitous Stores? - New Technological Frontiers in Retailing.

DOI: 10.5220/0005531301730178

In Proceedings of the 12th International Conference on e-Business (ICE-B-2015), pages 173-178

ISBN: 978-989-758-113-7

 2015 SCITEPRESS (Science and Technology Publications, Lda.)

2 TECHNOLOGY-ENHANCED

SHOPPING EXPERIENCE

Currently, research on retail solutions for enhancing

shopping experience are grown fast, reflecting

consumer increasing consciousness of their power.

In fact, the actual sense of consumer value is shifting

from product to service to experience and interaction

(Prahalad and Ramaswamy, 2004; Heinonen et al.,

2013; Ngo and O’Cass, 2013). Hence, the actual

trend is to develop new technologies able to provide

immersive and engaging experiences, which

consumer access through high interactive and

realistic interfaces.

As a consequence, retailers try to differentiate

their offer by providing smart consumer solutions

than stand-alone services or new products

(Biggemann et al., 2013; Pantano, 2014; Pantano

and Timmermans, 2014). Since the introduction of

advanced systems within the stores provides new

self- services able to eliminate or drastically reduce

the human assistance by moving some tasks

traditionally executed by sellers to an automatic

machine or allowing consumers to perform by

themselves (Tang et al., 2001; Vesel and Zakbar,

2010; Lee et al., 2013), their experiences in the new

environment is mediated by the technology and

changes dramatically.

Due to the advancements in virtual reality and

3D graphics, new virtual environments and products

displays have increased the appeal of online

services. In fact, the quality of 3D graphics enhances

the realism of the experience and the feeling of

interacting within the real environment, while the

high level of interactivity allows consumers to view

products from different perspectives, as well as to

explore the different functions and features of

products on sale like in a real environment

(Algharabat and Dennis, 2010; Cheng et al., 2014).

This paper focuses on the changes in consumers

shopping experience in the case of e-store (online

store) and m-store (mobile store based on the usage

of smart devices such as smart phones).

2.1 E-store

The rapid diffusion of Internet technologies among

potential consumers provides new online platforms

where clients could purchase directly at home 24/7

(recognized as I-commerce, e-commerce, e-tailing,

or e-store), by offering the online easy access to

shopping environment (e-store) also to that part of

population with limited mobility. Prior studies on e-

stores highlighted their high level of perceived

convenience by consumers (Hsiao, 2009; Pantano

and Servidio, 2012). In fact, these retail settings

provide a superior shopping experience according to

several factors (Katerattanakul and Siau, 2003;

Pantano and Servidio, 2012):

- physical facilities, because e-stores provides

flexible architecture and layout (they can be updated

more frequently than a physical store, with a limited

investment in software and programming), while

offering a fast response time (the response time does

not depend on the number of the clients in the store,

in opposite with the physical store that can be very

crowd with negative consequence on the speed of

service delivery);

- product presentation, because 3D graphics

enhances products displaying and the interaction

with the available products. Resolution and

interactivity are related to the computer interface

employed for the connection;

- service, because the e-store offers a wider

range of services, such as recommended systems for

supporting consumer’s purchase decision, enhanced

information on the product (i.e. video explaining the

manufacturing process), home delivery polices, etc.;

- convenience in terms of location, parking,

opening hours and access, because it consist of store,

accessible anytime (24/7) and anywhere when an

desktop internet connection is available;

- visual appearance in terms of store atmosphere

and attractiveness, because e-store provides new

engaging and entertaining experiences based on the

use of 3D graphics, user-friendly interfaces, high

realistic environments, advanced input devices, etc..

To date, the substitution of physical stores for

online ones is considered still unrealistic, while they

are considered a strong supporting tool for shopping

(Rotem-Mindali, 2009).

2.2 M-store

Similarly to the rapid spread of e-stores, another

trend emerges from the improvements in the

connectivity (i.e. wireless, cloud computing,

ubiquitous access, etc.) that might reduce the

physical spatial dimension of a store, while

enlarging the store offer, and can be considered as

an evolution of the e-store (Wu and Hisa, 2008;

Bennet and Savani, 2011). This consists of the use of

mobile devices for shopping (if connected to

internet), moving the web-based functionalities from

desktop applications (e-store) to all environments

equipped with a network connection. The large

diffusion of mobile computing, based on the

portable accessing technologies always connected to

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internet for accessing to multimedia contents

repositories (e.g. location based services) (Lin et al.,

2011), pushes retailers to provide mobile

applications for consumers, with the aim to

influence them to buy anytime and everywhere.

These apps show products through mobile interfaces

supporting mobile purchase. In this way, the mobiles

became a kind of interactive guide in the new retail

settings. A meaningful example is the IKEA app,

which consists of a digital version of the catalogue

allowing users to view 360 room sets, to access

more information on products, and simulate the

placement of selected furniture from the catalogues

in their own room with the 3D augmented reality

tool (based on the usage of user mobile camera).

Similarly to the case of e-store, m-store offers a

large convenience if compared to the traditional

physical points of sale, in terms of:

- physical facilities, because m-store contents

might be customized on users’ requests and be

constantly updated;

- product presentation, because m-store offers a

large variety of products and enhanced related

information and the interaction with the available

products (i.e. access to video, audio, 3D virtual

manipulation, etc.). Resolution and interactivity are

related to the mobile interface employed for the

connection;

- service, m-store offers mobile payment systems

(for fast self-check out), access to personalized

contents and recommendation systems, etc.;

- convenience, by offering a store accessible

anytime and anywhere;

- visual appearance, m-store provides 3D

graphics, user-friendly interfaces, high interactive

and realistic environments, which could be

integrated within a real shopping environment as a

supporting shopping guide (see the case of Ikea

mobile catalogue), etc..

3 UBIQUITOUS STORE

Similarly to e-store and m-store, another trend based

on the diffusion of high connectivity is related to the

integration of ubiquitous computing in retail settings

for creating a new ubiquitous scenario for shopping:

the u-store.

In particular, ubiquitous computing enables (i)

the automatic identification and communication

among objects and mobiles, (ii) the ubiquitous

access to the data available within the network, and

(iii) the secure transfer of information (i.e. for

contactless payments).

Main limits of m-store are related to the mobile

technical characteristics such as memorization and

computing capacity (Hejazinia and Razzazi, 2010;

Yang and Kim, 2012). In opposite, in a u-store, the

integration between consumer own mobile and the

technological environment makes possible to

overcome these limits by shifting the computing

capacity to the ubiquitous system (Hejazinia and

Razzazi, 2010; Yang and Kim, 2012).

The functioning of this system is as follows:

- each product is associated with a QR code (a

sort of bidimensional barcode that memorizes

information to be read by a mobile camera);

- consumer accesses the product by focusing

mobile camera on the QR code and visualize the

related information;

- consumer might choose to buy and create his

virtual basket;

- if consumer want to buy, the system transmits

the information to the center that calls consumers to

proceed with the order and the payment;

- all the purchases are delivered directly at home.

Since u-store is based on the virtual reconstruction

of the products (the product displayed are virtual), it

can be easily adapted for a wide range of products,

by changing the code, modifying the image of each

product and updating the data repositories.

Therefore, an u-store merges the advantages of e-

store and m-store (i.e. a wider amount of products,

fast response to consumers’ requests, open 24/7,

possibility to fast visualize and compare a huge

number of items, etc.) and the ones of the physical

store (i.e. the possibility to visualize the products

with the real size, and have a more realistic

experience), by offering an alternative to the both

shopping environments.

For these reasons, u-store is increasing diffusion

around the world, especially for groceries, by

meeting the needs of that part of population whit

limited time for shopping food and beverage. The

idea to place these stores at the bus/metro stops,

support shopping of daily food that consumers need

to buy frequently but have not time to do. For

instance, Homeplus app developed by Tesco

supermarket allows buying through the “Tesco

virtual stores”, virtually located on walls of metro

stations and bus stops. Similarly, Sorli Virtual

proposed a u-store at the metro stop Sarrià in

Barcellona (Spain) (Figure 1).

From a managerial point of view, due to the low

costs of information sharing, ubiquitous computing

is able to increase the number of transactions by

supporting the delivery of customized services and

complementary products (Pantano, 2013), and to

PlacelessStoreorUbiquitousStores?-NewTechnologicalFrontiersinRetailing

175

Figure 1. An example of ubiquitous store: Sorli Virtual in

Barcelona (Spain).

further provide updated data on each consumer

accessing the service, which can be exploited for the

development of marketing strategies.

From a customer point of view, ubiquitous

computing modifies the purchasing process, in terms

of product searching, product displaying,

information accessing, payment modalities, and

vendor-client relationships (Pantano 2013; Pantano

and Timmermans, 2014).

4 DISCUSSIONS

Our paper investigated the extent to which advanced

technologies create 3 new shopping environments

that represent a breakthrough with the traditional

points of sale: e-, m- and u-store.

Table 1 summarizes the main features of the e-,

m- and u-store to emphasize the effects of new

technologies within retail settings.

As emerging from table 1, the main differences

among the new stores based on the advanced

technology rely on the product presentation and on

the convenience.

Concerning product displaying, it is accessed by

a desktop computer, while the m-store is accessed by

a mobile device that usually has a small interface. In

opposite, u-store provides a larger surface for

visualizing the products, i.e. walls of metro stops.

Concerning the convenience, all the stores require an

internet connection. While e-store is accessed

through a desktop computer and m-store from

mobile, u-store can be accessed only from the

specific area where the new point of sale is located,

thus it overcomes the boundaries related to the

traditional stores opening hours, but not the physical

boundaries (even if it enlarges these margins).

Table 1: Comparison among e-, m- and u-store.

e-store m-store u-store

Physical

facilities

Flexible flexible flexible

Product

presentation

graphics

and

interaction

with

products

related to

the quality

computer

interface

graphics

and

interaction

with

products

related to

the quality

of mobile

interface

and usage

augmented

reality

tools for a

realistic

display

(i.e. Ikea

virtual

catalogue)

graphics,

large

surface for

displaying

(i.e. walls

of metro

stops)

Service

Enhanced

services

Enhanced

services,

Enhanced

services,

integration

with real

scenario

Convenience

accessible

anytime

(24/7) and

anywhere

when an

desktop

internet

connection

available

accessible

anytime

(24/7) and

anywhere

when an

internet

connection

available

accessible

anytime

(24/7)

within the

specific

areas

offering the

service

(usually

metro/bus

stops)

As anticipated, the particular location of u-store is

able to stimulate consumers’ interest towards the

purchase of those products that are often purchased

but require time. It is especially evident in the

groceries, where this kind of store allow easily and

fast buy milk, breads, fruits, etc..

Although the current examples of u-store are

mainly devoted to the food and beverage industry,

its flexibility allows adapting to other sectors such as

the fashion industry, which would achieve benefits

from the integration of ubiquitous technologies and

virtual fit systems.

Our paper underlines the current trend in

retailing towards a new kind of store more based on

the technology. Figure 2 summarizes these findings,

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176

by put emphasis on the extent to which the higher

integration with the technology implies the lower

store spatial dimensions.

Figure 2: Current trend in retailing: from (large) traditional

points of sale to placeless stores.

Summarizing, the emerging trend consists on a

decreasing of required store spatial dimension with

the progresses in technology. In fact, the current

actual studies emphasize an exploitation of mobile

and high connectivity technology for innovating in

retailing, while excluding the usage of large fixed

technologies for supporting shopping (Pantano,

2014; Pantano and Timmermans, 2014).

5 CONCLUSIONS

Our paper provides an overview of the current trend

in retailing, which is characterized by the innovation

force pushing to a new concept of store, where

technology is more integrated and the boundaries of

physical stores are overcome, a sort of “placeless” or

ubiquitous store: a store distributed though the

technologies and not limited to a physical limited

environment. Although the substitution of traditional

store with the technological ones actually seems

quite unrealistic, in the future retailers will need to

compete also with this force, and redesign the

shopping experience within the physical store for

maintaining existing consumers. Moreover, this

study is explorative in nature, thus it would solicit

new researches providing quantitative data on the

both consumers and retailers standpoints.

Finally, some considerations can be outlined

concerning in-store consumers behaviour. Although

consumers require new shopping experiences

(Pantano, 2014), retailers preparedness towards the

innovative force in terms of practices for managing

the innovations, technology absorptive capacity,

development of ah-hoc capabilities is still under

investigated. Future researches may investigate this

trend, by focusing on the technological innovation

among retailers, and the development of new

frameworks for supporting retailers in successfully

competing in the innovative scenario.

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