New Formats for the Physical Store of the Future: How to evaluate and manage new store formats

Retail is undergoing a significant structural transformation and, in the wake of growing digitalisation, many wonder what role the physical store will play in the future. What should the future store look like? What function should it have in a modern and digitalised customer journey? How can retailers maintain and develop the physical store's distinctive character and advantages vis-a-vis digital contact with the customer? Several large Swedish retailers are currently reviewing their store portfolio and supplementing it with new formats.

In this project, we will work with retailers to evaluate and develop existing methods (KPI) of evaluating physical stores in order to find appropriate and relevant ways to evaluate new physical retail formats. The research question that will guide us is, thus, how retailers should evaluate new physical retail formats, and in particular those formats where values other than sales are central. IKEA city stores can clearly not be evaluated according to the same criteria as traditional IKEA department stores. But, what should the evaluation of new formats look like? And how do customers view old and new physical retail formats? What do new formats offer the customer? How do customers view retailers that develop and operate new formats in parallel with old formats?