The Role of the Physical Store in an Omnichannel Strategy

THE ROLE OF THE PHYSICAL STORE IN AN OMNICHANNEL STRATEGY

A qualitative study of Generation Z in the Swedish fashion industry

Axel Wedebrand, Charlotta Ödling

Department of Business Administration Master’s Program in Marketing and Finance Master's Thesis in Business Administration II, 15 Credits, Spring 2021 Supervisor: Vladimir Vanyushyn

Abstract The modern retail landscape is experiencing a continuous change due to digitalization. With the growing number of available channels, consumers' consequent behavior within the fashion retail environment are becoming ever more complex. Which thus poses a challenge for fashion retailers in trying to not only understand them, but how to serve them best. Along this evolution of retail due to digitalization, physical retail stores have closed down due to the increasing competition from e-commerce, although it remains the biggest distribution channel. The role of the physical store is thus experiencing elements of an existential crisis. In this, Generation Z remains an ambiguous consumer segment whose importance will only increase as the generation comes into its purchasing prime. But, Generation Z is not yet well understood as limited research exists on the subject. And as they’re the digital native generation, where retail omnichannel strategies are commonplace, seeking to understand their attitudes, preferences and perceptions of omnichannel retailing, but also the physical store, is thus essential moving into the future. Therefore, the purpose of this study is to distinguish and explore the value of the physical store in the eyes of Generation Z in an omnichannel strategy, within the context of fashion retailing.

RQ: What is the role of physical fashion stores within omnichannel strategy, in regard to Generation Z?

In order to answer the research question, the method of choice was a qualitative one. The consequent empirical findings were gathered from seven semi-structured interviews, six from Generation Z respondents and one from the CCO of Gina Tricot, yielding a managerial perspective. Thus, allowing for triangulation opportunities. Moreover, besides the empirical findings, we present a proposed framework which illustrates how and why Generation Z’s behavior, preferences and perceptions have ultimately altered the role of physical stores to be one of increasing complementarity within the context of an omnichannel strategy. In describing this evolution, multiple characteristics of Generation Z are distinguished.

Finally, this thesis provides a deepened knowledge on how retailers may use their physical store within an omnichannel strategy to better serve Generation Z consumers in order to enhance customer experience and satisfaction. The empirical findings exhibit the physical store as an essential part for consumers within the context of other available channels online. Where multiple aspects otherwise not satisfied through online channels, serve an important purpose for Generation Z consumers. This thesis may thus offer value for retailers in how to balance various appreciated aspects of the physical store, whilst incorporating some of the desired elements of online, to increase the customer experience of physical stores.

Key Words: Generation Z, Omnichannel, Physical Store, Customer Journey, Customer Experience, Shopping Behavior, Fashion, Retail, Webrooming, Showrooming, Cross- Channel Freeriding, E-Commerce, Brick-and-Mortar.

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Acknowledgements

We would like to begin with showing all respondents much worthy appreciation for participating in the interviews, as this study would not have been feasible without them. A special thank you to Renée Säverot, CCO at Gina Tricot, who provided us with exceptional knowledge and inputs. Also, we’d like to thank all consumer respondents who shared their insights, it’s been inspiring and instrumental to our study.

We’d also like to thank our supervisor, Vladimir Vanyushyn, who provided us with guidance and valuable insights throughout the length of this thesis.

Umeå University, May 26th, 2021

Axel Wedebrand Charlotta Ödling

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Table of Contents 1. Introduction ...... 1 1.1 Trends in the retail industry ...... 1 1.2 The rise of omnichannel ...... 2 1.3 The physical store within omnichannel ...... 2 1.4 Fashion retail in the age of digitalization ...... 3 1.5 Generation Z’s impact on the future of fashion retail...... 3 1.6 Synthesis ...... 4 1.7 Research Question ...... 4 1.8 Purpose ...... 4 1.9 Delimitations ...... 5 2. Research Philosophy ...... 6 2.1 Ontological Assumption ...... 6 2.2 Epistemological Assumption ...... 6 2.3 Research approach ...... 6 2.4 Literature search and source criticism ...... 7 3. Literature Review ...... 9 3.1 Omnichannel ...... 9 3.1.1 Going from multichannel to omnichannel...... 9 3.1.2 Challenges and opportunities within an omnichannel strategy ...... 10 3.1.3 Traditional role of the physical store ...... 10 3.1.4 E-commerce and digital stores ...... 11 3.1.5 New forms of the physical store ...... 12

3.2 Consumer behavior in an omnichannel context...... 13 3.2.1 Customer Experience ...... 13 3.2.2 Shopping Behavior ...... 15 3.2.3 Customer Journey ...... 15

3.3 Attributes of Generation Z ...... 18 3.4 The Swedish Fashion Industry ...... 19 3.5 Summary literature review ...... 20 4. Practical Methodology ...... 22 4.1 Research Design ...... 22 4.2 Data Collection Method ...... 23 4.3 Sampling ...... 24

4.4 Data collection tool ...... 26 4.4.1 Construction of interview guides ...... 26 4.4.2 Pilot study ...... 28

4.5 The Interview Process...... 28 4.6 Data analysis method ...... 29 4.7 Quality Criteria ...... 29 4.8 Ethical Considerations ...... 31 5. Empirical Findings ...... 32 5.1 Consumer perspective ...... 32 5.1.1 Presentation of the respondents ...... 32 5.1.2 The use of different channels ...... 32 5.1.3 Attitudes and expectations of the physical store ...... 34 5.1.4 The physical store in relation to other channels ...... 36 5.1.5 Smart technologies of the physical store ...... 37 5.1.6 Integration of physical store and other online channels ...... 37 5.1.7 The future of the physical store ...... 38

5.2 Managerial perspective ...... 40 5.2.1 Presentation of respondent ...... 40 5.2.2 Online channels and the physical store ...... 40 5.2.3 Smart technology and use of mobile devices in physical stores ...... 41 5.2.4 Integration physical/online channels ...... 41 5.2.5 The future of the physical store ...... 42

5.3 Overview empirical findings ...... 42 6. Analysis and Discussion ...... 44 6.1 Customer Experience ...... 44 6.2 Customer Journey ...... 45 6.3 Shopping Behavior ...... 47 6.4 The Physical Store in the eyes of Gen Z...... 47 6.5 Personal service in the physical store ...... 49 6.6 Technology in the physical store ...... 50 6.7 Omnichannel seamlessness ...... 50 6.8 Proposed Framework ...... 52 7. Concluding remarks & Implications ...... 54 7.1 Key findings and theoretical contributions ...... 54 7.1.1 Increasingly complementarity role of the physical store...... 55 7.1.2 Evaluation - Try, touch and feel ...... 55

7.1.3 Efficiency ...... 55 7.1.4 Personal service versus technological self-service in store ...... 56 7.1.5 Challenges and opportunities ...... 56

7.2 Managerial Implications ...... 58 7.3 Societal Implications ...... 59 7.4 Limitations and Future Research ...... 59 Reference list ...... 61 Appendices ...... 67

List of Figures

Figure 1. The omnichannel customer decision-making journey framework for fashion ...... 17 Figure 2. Generation Z shoppers...... 19 Figure 3. Conceptual theoretical framework...... 21 Figure 4. Revised proposed framework...... 53

List of Tables

Table 1. Keywords literature search...... 7 Table 2. Overview of respondents...... 25 Table 3. Overview construction of interview guide...... 27 Table 4. Summary key findings from respective respondents...... 43

1. Introduction This initiating chapter will present the relevance and topicality of this study, both from a practical and theoretical perspective. A background explanation and problematization of the research topic is provided based on previous articles and literature, which lay the foundation for the research gap. Further, this has been the basis for the research question and purpose of this study. Finally, the delimitations of this study are presented.

1.1 Trends in the retail industry

Digitalization has shaped our way of life for decades. New conditions due to technological developments have changed consumers’ expectations and how they behave, which in turn have reshaped the structure of the whole retail sector (Jin, et. al., 2020, p. 1). The traditional means of purchasing products has been what we today commonly refer to as offline, or rather in the form of physical stores. But congruent with a multitude of industries, digitalization has radically changed how consumers both interact and purchase goods, moving from solely purchasing goods in-store to accessing to purchasing anything by the click of a button online, through a smart-phone, computer or tablet (Hagberg et al., (2016, p. 694). Through the increased competition from e-commerce stores, this has effectively forced a large number of physical stores to shut down, to the point that this trend has been coined the retail apocalypse (Helm et al., 2020, p. 1). This is according to Anon (2020, p. 379) in large part derived from increased competition from e-commerce alternatives as well as changing purchasing patterns and decreasing foot traffic. This is further expanded upon by Pantano and Galdini (2018, p. 700) which lays out additional reasons for changed purchasing patterns to aspects such as the increasing use of digital mediums which changes how consumers interact, share and access information from retailers.

Simultaneously, in phase with technological advances the number of retail channels is growing (Rigby, 2011, cited in von Briel, 2020, p. 217). In 2019, consumers in Sweden spent approximately 300 billion (SEK) on online shopping, which accounts for an increase of spending with 15,7 percent, compared with previous years spending (DIBS by Nets, 2020, p. 3). According to a report by the Swedish Trade Federation (2018), the physical stores accounted for approximately 90 percent of all retail sales in Sweden in 2018, and are forecasted to represent between 67 and 78 percent within a ten years period. This may be due to the characteristics that the physical store offers, that can be complicated to replicate in an online context. This indicates that physical channels still play a vital role within the retail industry.

In relation to the growth of different types of channels, Deleersnyder et al. (2002) initiated the discussion whether the rise of Internet based distribution channels actually could result in lost sales, due to cannibalization. A phenomenon which can be explained as the reduction of sales through an existing channel, is in direct relation to the introduction of a new channel. However, the findings of the research by Deleersnyder et al. (2002, p. 346) show that the threat of cannibalization does not seem to be as apparent as expected. The authors further highlight that the Internet to a small extent cannibalizes traditional offline channels. Posing this definition in relation to the subject in hand. When online stores for a firm grow in size and sales, their physical stores would then experience a direct decline in sales as a proportion of the sales moved from the physical store to their online store.

1.2 The rise of omnichannel

In the early 2000s a simple distinction between online and offline channels was sufficient, however, nowadays a more nuanced depiction is required in order to distinguish different channels like web shops, social media channels and physical stores (Verhoef et al., 2015, p. 175). In order to manage changes due to technological advances many retailers initially started to implement a multi-channel strategy, by selling products through multiple online and offline channels (Gao et al., 2021, p. 1). In phase with the fact that digitalization has become increasingly integrated in people's lives, the multichannel approach has been further developed to something referred to as omnichannel strategy. In relation to multichannel strategy, omnichannel strategies involve more channels at the same time as the channels (both offline and online) become more integrated and the borders between the channels start to disappear (Verhoef et al., 2015, p. 175). Bernon et al. (2016, p. 586) describes omnichannel retailing as “a seamless approach to retailing that offers a single and unified shopping experience across all retail channel formats”. According to a report by IDC Retail Insights (2010, cited in Lynch & Barnes, p. 471) omnichannel strategies lead to more loyal customers that spend at least 20 percent more compared to customers of firms using multichannel strategies. Furthermore, from a theoretical point of view, omnichannel strategies are an emerging research area within retail marketing (Piotrowicz & Cuthbertson, 2014, p. 14; von Biel, 2018, p. 218). As stated by the Marketing Science Institute (Kahn, 2020) the research prioritized for 2020-2022 includes research concerning “the omnichannel promotion and distribution”. This further confirms the relevance of the research area both from a theoretical as well as practical perspective.

1.3 The physical store within omnichannel

Hagberg et al. (2017, p. 264) emphasizes that although physical stores are greatly affected by the continuing digitalization, their role within the context of omnichannel has in some ways redefined their importance, as they are expected to play an increasingly vital role within omnichannel strategies in retail. Picot-Coupey et al. (2016, p. 25) argues the importance of weighing the benefits of each channel so as to consequently build upon each of the channels’ strengths. Such as the enjoyment of touch and feel in physical stores, as well as enabling the ubiquitous element of online. Von Briel (2018, p. 218) elaborates on how a large number of retailers who traditionally devoted themselves to single channel operations, have now come to expand their operations to more channels. Moving from single channel to multi-channel operations, this move has with time subsequently made some operations move towards integrating these channels to one seamless experience (von Biel, 2020, p. 218). With this evolution, von Biel (2020, p. 218) argues that the traditional brick and mortar store has now become a destination for consumers to test and try out clothes which they later purchase online, better known as “showrooming”. The concept of showrooms extends to e-commerce stores, who choose to open up pop-up stores so as to allow consumers to partake in the benefits of the physical store, otherwise not possible (Bell et al., 2015, p. 360). Which Hagberg and Jonsson (2016, p. 74) argue can also be used to create awareness, interest among consumers and facilitate customer purchase. In this, physical stores face the conundrum of how to better integrate physical stores into one seamless omnichannel experience. Furthermore, von Biel (2020, p. 224) highlights that one of the key findings from his study is that physical stores have to be reinvented through technological advances in order to make stores the key touchpoint offering distinctive tactile shopping experiences. Gunnilstam (2019) articulates the benefits for an e-commerce site opening up a physical store, in which the online sales increased by 40 percent when a physical store was present geographically.

In a study by Alexander and Blazquez Cano (2020) the researchers investigated the future physical store and customer experience within the omnichannel context, by interviewing 20 experts within the field retail design. The authors conclude that future research should incorporate a consumer perspective of the issue in order to define eventual consistency between firms' expected experience desires with consumers actual desires (Alexander & Blazquez Cano, 2020, p. 10). The role of physical stores and their place in modern omnichannel strategy is undeniably a current dilemma, emphasized by Hagberg et al. (2017, p. 264) in that it’s clear that digitalization affects the physical store. But how it’s affected remains somewhat ambiguous. Citing that the integration and interaction between the digital and physical requires additional focus.

1.4 Fashion retail in the age of digitalization

Omnichannel has become one of the most noteworthy innovations within the fashion industry (Rogers, 2014). This relies on the fact that the fashion sector has been significantly affected by digitalization, which has changed the behavior of fashion consumers (Lynch & Barnes, 2020, p. 472). Additionally, the fashion industry relies on the benefit of physical cues. Sensory cues which customers traditionally draw benefits from when engaged in the physical store. This remains one of the advantages that physical stores have over e- commerce, that consumers can see, feel and smell whatever is in front of them (Hagberg & Jonsson, 2016, p. 64). Further, Hagberg and Jonsson (2016, p. 64) explain other relevant areas which cohesively speak for the relevance of the physical store, such as physical contact through in-store service, that consumers interact socially by visiting stores and finally that of tradition. Referring to the historic tradition by how we sell and buy wares, which in turn is what consumers remain used to.

According to Lorenzo-Romero et al. (2020, p. 2) fashion consumers today access the fashion brands through multiple channels before they make their final purchase and use digital and physical channels for different purposes. Due to this, Lynch and Barnes (2020, p. 472) highlight the need for research to investigate how consumers within the fashion industry interact with the range of different channels. Furthermore, Lynch and Barnes (2020, p. 474) state that omnichannel as an emerging area within fashion marketing research and emphasizes that the fashion industry brings a unique aspect to omnichannel research due to the interaction between fashion and a consumer's self-concept. The authors also stress the need for research to investigate fashion consumer's behavior in relation to omnichannel in regard to different customer segments.

1.5 Generation Z’s impact on the future of fashion retail

As much of the purpose of omnichannel strategy is to allow consumers to have a seamless, all-encompassing experience across channels, it has also become one of the more notable innovations, and consequently an area of great importance for the retail industry (Lynch and Barnes, 2020, p. 472; Drapers, 2014). Sharma et al. (2019, p. 194) elaborates that although consumer experience is seemingly enriched by omnichannel retailing, consumers become disheartened when their wants, needs and expectations aren’t met. This in turn creates complexities and boundaries for consumer adoption of omnichannel retailing and elicits the challenge of how firms allow consumers to engage seamlessly. Further, Sharma et al. (2019, p. 194) note that a majority of current consumers involved in omnichannel retailing belong to generation Y, but note that the younger generations currently influence the current and future of omnichannel retailing. Consequently, within the sphere of omnichannel and customer experience, increasing attention has been devoted to allowing for interactivity in- store as well as communication and socialization through appealing climate cues (Alexander

& Blazquez Cano, 2020, p. 3). According to IBM (Cheung et al., 2018, p. 7), Generation Z, people born between 1995 and the 2010s, allude to valuing aspects such as technology, only if it enhances the customer experience and won’t adopt technology for the sake of technology, if it doesn’t enhance said experience. In a literature review of Vojvodic (2019) the author identifies key characteristics of Generation Z in the setting of physical stores, and highlights that in contrast to older generations (e.g. gen Y, gen X, baby boomers) Generation Z is still a relatively unexplored research area within the field of retail and consumer behavior (Vojvodic, 2019, p. 106). Furthermore, the author emphasizes that more research is needed to contribute empirical support in order to extend the understanding of the role of physical retail stores in the eyes of Generation Z (Vojvodic, 2019, p. 114). With this in mind, exploring the role of physical stores within omnichannel strategy in the context of generations Z, is highly relevant.

1.6 Synthesis

As the aforementioned articles emphasize, the future of retailing in large part lies in seamlessly integrating the physical store into an omnichannel experience. But, how the physical store will be affected by the unceasing change from digitalization is not yet completely understood. As more and more retail stores close down due to changing customer behaviors and increased competition from e-commerce, it’s crucial to understand the role of the physical store in an omnichannel strategy and what role it plays in creating value for consumers. And as discovered by reviewing previous research, the consumer perspective remains less explored in the context of bringing value to the physical store within an omnichannel strategy. Moreover, the fashion industry has been particularly influenced by digitalization which has resulted in an increased attention for omnichannel strategies within the fashion sector. Simultaneously, the benefits which physical stores provide remain highly relevant in establishing unique and valuable customer experiences within the fashion industry. Further, it’s also acknowledged that Generation Z among all the other generations able to purchase goods, remains somewhat unexplored. Both in terms of actual purchasing behavior and possible influence on the future of retail. It’s thus of interest to yield an increased understanding of how Generation Z can, and will influence the future of retail and the physical store within an omnichannel context.

1.7 Research Question

Based on the research gap identified through a literature review in the aforementioned chapter, this study aims to answer the following research question, also in line with our research purpose.

• What is the role of physical fashion stores within omnichannel strategy, in regard to Generation Z?

1.8 Purpose

The purpose of this study is twofold. Firstly, this study aims to examine and expand the knowledge about Generation Z’s preferences and attitudes towards the physical store and the value it holds for Generation Z consumers within an omnichannel context. Additionally, the study aims to identify challenges and opportunities for fashion retailers in integrating physical stores into an omnichannel strategy, in regard to Generation Z.

1.9 Delimitations

The focus of this thesis remains to explore Generation Z’s consequent behavior, attitudes and perceptions towards the physical fashion retail store within an omnichannel strategy limited to the Swedish market. Thus, the aforementioned related aspects towards Generation Z are of interest, and not those of consumers outside the defining ages of Generation Z (1995-2010). Moreover, these elements are explored in relation to the fashion industry, and fashion retailers in particular. And not luxury clothes nor budget brands which may be found at supermarkets. Thus, retailers outside what is considered the fashion industry are not of interest. Further, we aim to explore fashion retailers who deploy an omnichannel strategy. As previous research has explored the managerial perspective of omnichannel strategies for fashion retailing, we approach it from a consumer perspective. Moreover, Generation Z as a consumer group remains unexplored in this context. In order to deepen the existing knowledge, a consumer perspective is of interest, whilst being able to compare it with the perspective of a manager from the fashion industry.

2. Research Philosophy In this chapter we will present the research philosophical methodology of this study, including our ontological, epistemological and axiological assumptions. Further we will also discuss our research approach as well as our process of literature search and source criticism.

2.1 Ontological Assumption

Ontological assumptions concern how the researched phenomenon is approached, in regard to how the researchers describe and perceive the social reality (Saunders et al., 2016, s. 127). In this, there are namely two perspectives for how the social reality is perceived and described. These are positivism and interpretivism (Collis & Hussey, 2014, s. 47). This study intends to understand consumers' attitudes, as well as managerial perceptions of Generation Z’s attitudes, which implies that the respondents of this study potentially will contribute with their own subjective interpretations of the researched phenomenon. With this in mind, this study will rely on an interpretivist viewpoint of reality. According to Bryman and Bell (2011, p. 37) the interpretivist standpoint relies on subjectivism and implies that the reality is socially constructed, where individuals are assumed to have different perceptions of the reality and how it is constructed (Collis & Hussey, 2014, s. 47).

2.2 Epistemological Assumption

Epistemology concerns our beliefs about how we see the world around us (Ryan, 2018, p. 14). The ontological choice and/or standpoint directly influences epistemology (Fleetwood, 2005, p. 197) and connects to the presumption about knowledge (Saunders et al., 2016, p. 127). Much like ontology, the two traditional perspectives which exist within the confines of epistemology is positivism and interpretivism, which entails that knowledge can be either objective, suggesting a positivistic assumption of knowledge, or subjective, which falls under the interpretivist assumption (Saunders et al., 2016, p. 127). Interpretivists argue that when studying the social world, it’s fundamentally important to utilize the human ability to understand others, through shared experiences, empathy and culture. Rather than from an outside perspective forcibly try and understand the behavior of physical objects (Hammersley, 2013, p. 26).

As the purpose is to study both perceptions and attitudes of individuals within the fashion industry, an interpretivism approach remains the most suitable, as the study is exploratory in nature and aims to generate new knowledge to the field. Further, as the perceptions of both firms and customers concerning the value and attitudes of the physical store in an omnichannel context may vary, the interpretivist approach which according to (Collis & Hussey, 2014, p. 49) have a subjective view on knowledge, remains the most appropriate.

2.3 Research approach

The research approach of this study is mainly drawn from an inductive approach. According to Bryman and Nilsson (2018, p. 49) there are two main standpoints that describe the approach between the empirics and theory named inductivism and deductivism. Bryman and Bell (2013, p. 45) describes that the deductive and inductive approach should not be seen as complete polar opposites, as black and white, but may very much interact and co-exist within the confines of the research. As this thesis seeks to establish a deeper knowledge about the research topic than previously performed research, shades of the inductive approach are obvious. Moreover, a fundamental aspect of deductive research bases itself on

testing a hypothesis, which is not the case for this thesis. But, whilst this may be the case, a firm theoretical background functions as this thesis’ backbone, where our understanding of the empirical evidence is heavily based on the previously established theory. Alluding to more of a deductive approach. Collis and Hussey (2014, p. 7) argues that in a deductive approach, the researchers proceed from a theoretical framework which is later examined through empirical observations. But, our thesis bases itself on collecting data to explore a research phenomenon, namely Generation Z’s attitudes and preferences towards the physical store in an omnichannel strategy. A core concept within inductive research is mainly to collect data in order to study a phenomenon, identify subsequent patterns etc. to later create a conceptual framework of the research phenomenon (Saunders et al., 2016, p. 145). With this in mind, our study tends to conform to a more inductive approach.

2.4 Literature search and source criticism

The literature search was executed initially to identify and develop the research gap based on relevant scientific literature. However, in order to demonstrate the studies' relevance from a practical point of view, other sources than scientific articles, e.g. industry reports, websites, books, have been used in the initial chapter. Further, when the research gap was acknowledged the literature search proceeded in order to conduct the theoretical background. For this study, databases provided by Umeå University Library have been used. Multiple keywords have been used in order to find relevant literature, a sample of the most frequently used keywords is viewed in Table 1. These different keywords have been used separately, as well as in combination, in order to both deepen understanding of specific areas but also find literature integrating relevant areas. During the literature search following criteria were used; “peer-reviewed” and “open access”, which ensured to only find available scientific articles.

Table 1. Keywords literature search. Source: Authors

Area Keywords Omnichannel Omnichannel, omnichannel strategy, multichannel

Channels Online channels, offline channels, physical store, e-commerce, brick-and-mortar

Consumer Customer experience, customer journey, shopping behavior, behavior generation z, gen z

Fashion industry Fashion, fashion industry, retail

In order to critically evaluate the used articles in this study, we have applied three principles of source criticism presented by Thurén and Werner (2019). The first principle concerns the authenticity, which refers to the reliability of the source and the assurance that the source isn't counterfeit (Thurén & Werner, 2019, p. 12). This principle has been considered by using the databases of Umeå University Library, which we assess as a trustworthy provider. Further, the use of the search criteria “peer-reviewed” ensured we used scientific articles which reduces the risk of using counterfeit sources. The second principle we have taken into consideration is what Thurén and Werner (2019, p. 12) call freedom of tendency, which implies that the author(s) of the source could have personal, political or economic interest to distort results or present incorrect information. This principle has been taken into consideration, partly by using articles that have been peer-reviewed, but also by critically

reviewing the methodology of the articles in order to make our own assessment whether the results seem accurate. Lastly, we have considered the principle of independence, which according to Thurén and Werner (2019, p. 12) implies that the reliability of a source is generally higher when it isn't a reference from another source. In this sense, we have only used secondary references when the original source has been inaccessible.

As previously mentioned, we have also used non-scientific literature in this study, for example books, course literature and industry reports. The majority of these sources have been used in the first chapter in order to demonstrate the studies' relevance from a practical point of view. Further course literature and books have also been used when supporting the design of our methodology. The three principles of Thurén and Werner (2019) have also been taken into account when evaluating these sources. The principles have been processed by only using sources provided by recognized authors, as well as using the original source of the information.

3. Literature Review The literature review will first present existing literature on omnichannel strategy, the evolution of the retail industry and the role of the physical store. Moreover, related aspects such as customer experience, customer journey and shopping behavior are reviewed through existing literature so as to emphasize its relationship to the aforementioned. This is done to contextualize the relationship of these various behaviors and unique aspects of shopping; to later present the characteristics of Generation Z and the challenges fashion retailers face. Further, the specific context of the Swedish fashion industry will be presented. Finally, this chapter will present a proposed theoretical framework, based on the theories from the literature review.

3.1 Omnichannel

This section of the literature review will present previous research concerning the development of omnichannel strategies as well as its opportunities and challenges. Further, we will review literature both related to the physical store and its evolution as well as the e- commerce and digital stores.

3.1.1 Going from multichannel to omnichannel

With the unceasing evolution of digitalization, firms have moved from single channel retailing through traditional brick-and-mortar, to multi-channel strategy and finally omnichannel strategy. Where the defining difference between multi- and omnichannel strategy is integrating a multitude of channels, among them being the offline channel, to one cohesive, seamless experience (Savastano et al., 2019, p. 476). Verhoef et al. (2015, p. 175) argues that the evolution from multichannel to omnichannel in large part was induced by the ever more complex customer experience brought upon by the digitalization of the retail industry. Brick-and-mortar stores initially faced the dilemma of expanding their channel mix to include online channels as well. According to Verhoef et al. (2015, p. 175), this gave rise to problems with integrating the different channels and the management of customers. And with the dawn of the mobile channel, tablets and social media, the integration complexity between the online and offline channels deepened. Which in turn demanded a development of the multichannel strategy. Bernon et al. (2016, p. 586) defines an omnichannel strategy as “a seamless approach to retailing that offers a single and unified shopping experience across all retail channel formats”. A definition which falls in line with both Verhoef et al. (2015, p. 175) and Savastano et al. (2019, p. 476) perspectives on omnichannel; as where a multitude of channels all integrate to produce a seamless experience and the distinction between the online and offline cease to exist.

The conception of additional channels has indeed affected the customer journey and offered more so-called touch points along the customer journey (Ieva & Ziliani, 2018, p. 304). And this increase in available channels has emphasized the need for retailers to design an omnichannel customer experience. In which it’s argued that customer experience across a multitude of channels in the context of omnichannel is of the highest interest for retailers (Verhoef et al., 2015, p. 175).

3.1.2 Challenges and opportunities within an omnichannel strategy

The opportunity of omnichannel, by providing customers a holistic and customer-centric involvement as well as a seamless shopping experience through all retail channels, have already been pointed out. Furthermore, Chen et al. (2018, p. 1) highlights that retailers that apply an omnichannel strategy can take advantage of the opportunity to utilize synergies between different channels in order to synchronize consumer interactions through various touchpoints. Moreover, retailers can implement different technologies that track the behavior of consumers, both within online and offline channels, which further enables them to provide a customized and tailored shopping experience.

However, the use of omnichannel also implies some challenges. Whilst a multichannel approach in many ways makes use of the same channels as an omnichannel strategy, additional channels conform under the omnichannel approach and extend beyond retail channels to include channels not directly used for selling products, such as social media, web portals and smart devices (Verhoef et al., 2015, p. 176; Sharma et al., 2020, p. 195). But the transition from multichannel to omnichannel isn’t without its issues from both the perspective of the firm and consumer. Sharma et al. (2020, p. 195) emphasizes the increase of operational challenges with transforming from multichannel to omnichannel strategy, which in turn produces consumer challenges. Where the main barrier remains variability across the relevant channels, which in turn influence customers’ purchase intention. Channel integration is argued to be the greatest challenge with adopting an omnichannel strategy, due to increased operational complexity (Sharma et al., 2020, p. 195; von Biel, 2018, p. 218).

According to Chiu et al. (2011, p. 275) omnichannel retailers can be faced with problems with what they call cross-channel free-riding. Meaning when consumers move across different channels, they also tend to switch among different retailers. For example, by using one retailer’s channel to search for information about a product, but later ends up purchasing the product from another retailer. Furthermore, the authors highlight that cross-channel free- riders actually prefer to make their purchase in physical stores, since it enables immediate pick up and evaluation of products, can receive guidance from staff and avoids other purchasing risks.

The digitalization and moreover, the adoption of omnichannel strategy, has somewhat altered the role of the physical store within an omnichannel context (Hagberg et al., 2017, p. 264). The increase in competition from e-commerce has as a consequence produced new retail formats and adjusted retail concepts to enhance the part played by the physical store (Hagberg et al., 2017, p. 264; Hagberg & Jonsson, 2016, p. 26). This change has caused many e-commerce retailers to institute new physical store formats as an accompaniment to their online store, since the role of the physical store been seen as a pivotal cog in the omnichannel “machine” (Brynjolfsson et al., 2013, p. 2; Blom et al., 2017, p. 293). Exemplified by how consumers use physical stores for the purpose of “showrooming”, in which consumers examine products in-store and later purchase them online, yielding another challenge for retailers as to how best incorporate the physical store into an omnichannel strategy (von Biel, 2018, p. 2018).

3.1.3 Traditional role of the physical store

Historically, shopping in physical stores has been the norm. However, as already pointed out, the trend of online shopping has exploded in recent years and several experts predict

that the traditional physical store will be completely outcompeted by online stores in the future (Schonell, 2013, cited in Gao et al., 2021, p. 1). Nonetheless, physical shopping is still the main channel within the retail industry.

In a study of Wang et al. (2016) the researchers analyze attitudes towards offline and online channels based on channel characteristics, by conducting a survey with 191 consumers. The findings show that when consumers shop in a physical store, they have the opportunity to immediately review the service and product quality, and therefore the perceived risk and effort of the purchase is lower compared to buying online (Wang et al., 2016, p. 404). Furthermore, Hagberg and Jonsson (2016, p. 64) explain that the physical store offers consumers unique experiences by activating different sensories. For example, through the ability to see and touch products, or experience scents and sounds in the store environment. Hagberg and Jonsson (2016, p. 64) further emphasize the difficulty of replacing this sensory stimulus in a digital context. According to Moreia et al. (2017, p. 78) sensory stimuli have a great impact on the perceived brand experience as well as brand value, which further influence consumers' purchase intention. Another important dimension that physical stores offer is the social interaction, which arises through integrating and communicating with personnel or other visiting customers (Hagberg & Jonsson, 2016, p. 64). This interaction can play out in terms of service and guidance, or just satisfaction of social needs that do not necessarily have to be related to an actual purchase. Visiting a physical store can be perceived as an entertaining activity that allows consumers to explore new things or socialize with friends and family (Hagberg & Jonsson, 2016, p. 65). Furthermore, many people consider shopping in physical stores as a form of traditional practice that has been established for a long time, and is therefore deeply rooted in the routine of consumer shopping behavior (Hagberg & Jonsson, 2016, p. 65).

3.1.4 E-commerce and digital stores

In the mid to late 1990s, communication and information technology as well as the Internet, marked the beginning of e-commerce as the focus of these technologies shifted from being used for business-to-business purposes to customer focused businesses (Hänninen et al., 2021, p. 3). Hänninen et al. (2021, p. 3) elaborates on how this shift affected the core of the retail sector as e-commerce precipitated the popularity of home-deliveries among consumers, who now didn’t have to visit a store to purchase items, but could do so from their home computer and have the purchased items delivered to their doorstep. The popularity of e-commerce led many traditional brick-and-mortar retailers to take their business models into the online sphere, with varying degrees of success (Hänninen et al., 2021, p. 3). This trend of taking your business online eventually came to a halt with the arrival of the dot-com crash in the early 2000s (Hänninen et al., 2021, p. 3).

In the wake of the dot-com crash, not much development was made in e-commerce until the late 2000s, when advancements in service thinking, especially customer value, yet again put e-commerce back into the picture (Hänninen et al., 2021, p. 3; Levenburg, 2005, p. 319). The developments of digital tools in between these two periods of time now presented e- commerce firms with new tools which allowed for value co-creation, and gave way for an emphasized focus on customer experience (Hänninen et al., 2021, p. 3; Lusch et al., 2007, p. 13). Additionally, the increased number of touchpoints through mobile apps and other digital mediums gained increased importance due their role in helping retailers build long- term customer relationships (Grewal et al., 2009, p. 9). These digital instruments consequently helped retailers to assist consumers in making better decisions, making targeted offers beyond making the overall service faster (Inman & Nikolova, 2017, p. 23).

These advancements in turn paved the way for further development of multichannel strategies, and eventually omnichannel strategies, in aligning both the offline and online channels (Verhoef et al., 2015, p. 175).

Along this digital evolution, the ubiquitous presence of the internet through an array of devices, has allowed consumers to access information anywhere at any time, and at the same time allowed them to take part and share information with others (Grewal et al., 2017, p. 2). Retailers can at the same time participate in online discussion by leveraging the power of social media, where they can share relevant information and converse directly with consumers to enhance customer experience. Further, retailers can leverage visual cues such as digital displays to immerse consumers in the customer experience. Which enables a stronger emotional connection and thus alleviates some price-sensitivity customers may experience when shopping online (Grewal et al., 2017, p. 4).

An added benefit for online retailers is the information gained from consumer purchases. Data which in turn allows online retailers to predict consumer behavior, enhance offerings, better target consumers as well as produce tools which may make consumers choose their product. All which may yield a positive effect on profitability (Grewal et al., 2017, p. 1). Such information includes transactional data such as price and quantity and customer data such as age and gender. This is the information which retailers draw value from in order to predict the aforementioned (Grewal et al., 2017, p. 1). But, the data used in establishing customized offerings warrants thought, as using personal data can both enhance and decrease consumer engagement. Since consumers may realize or become aware of the amount of information retailers have about them, and consequently make further considerations about their privacy. This balance act concerns the personalization-privacy paradox retailers face along their collection, use and deployment of consumer data (Grewal et al., 2017, p. 2).

3.1.5 New forms of the physical store

The rise of online shopping and e-commerce due to digitalization, has already been pointed out. In phase with the increased trend of online shopping, retailers have been compelled to restructure and reinvent the role of the physical store (Gao et al., 2021, p. 1). A wide range of new technologies have been incorporated into the physical store, like QR-codes, virtual screens, augmented reality, magic mirrors or self-check-out points (Piotrowicz & Cuthbertson, 2014, pp. 6, 10). Piotrowicz and Cuthbertson (2014, p. 10) argue for the importance of technology integration, in the sense that all applied technologies in-store should be incorporated and interact for the benefit of the customer experience. In the study of Alexander and Blazquez Cano (2019, p. 8) the authors conclude that there has been a move concerning the characteristics and functions of the physical store in the context of omnichannel retail. The research shows that the physical store nowadays is seen as a place for social and educational interaction in a playful sense. In relation to this, new formats of the physical stores have embraced the retail market.

Pop-up stores are one example of a new type of physical touchpoint within the retail environment, that are designed to be open only for a limited time period and do not necessarily have the purpose of selling products (Kim et al., 2010, p. 134). Pop-up stores offer an interactive and experimental environment, where the customer can integrate with the brand and communicate with brand representatives (Kim et al., 2010, p. 134). Further, from the retailer perspective the pop-up store is an opportunity to attract potential customers and build brand image. In the study of Kim et al. (2010) the authors examine the relation of different consumer characteristics and attitudes towards pop-up stores, conducting a survey

with 869 consumers. Based on their empirical findings they suggest that the purpose of a pop-up store should be to build long-term relationships with customers, in order to lay the foundation for the customer to create an emotional connection to the products, services or the brand (Kim et al., 2010, p. 148).

Another relatively new innovation in relation to the traditional physical store, is the concept of click and collect. A simplistic explanation of click and collect is that the consumer places the order online and then picks up the item in a physical store (Jara et al., 2018, p. 431). In this sense, click and collect combines the online channels with the physical stores. According to Jara et al. (2018, p. 431) click and collect services have been frequently used in the fast food industry for several decades, however, in the retail sector it is a relatively new concept. The click and collect service offers customers 24/7 access to search and place orders, and then when picking up items in the physical store, they can see, touch and try it out before buying it (Jara et al., 2018, p. 431). Jara et al. (2018, p. 430) propose that the concept of click and collect changes how customers interact with retailers and how they perceive the service experience. Furthermore, the authors outline that this cross-channel strategy becomes an essential factor for the relationship between the retailer and the customer, that further can create long term customer value.

Along with the heightened use of smartphones, new ways of using this device have been introduced in the context of physical stores. Everything from firm-related apps to geographical specific offerings have been introduced and by extent also increased consumer expectations in the physical store format (Grewal et al., 2017, p. 2). Grewal et al. (2017, p. 2) elaborates on the scan-and-go technology, which allows consumers to use their smartphones to scan items whilst they shop and later pay using the company app. A company which has appropriated this concept and pushed it further, is Amazon Grewal et al. (2017, p. 2). Which have eliminated the need to scan items by extent of their Amazon Go technology. In this context, consumers scan their smartphone whilst entering the store, pick up the items they want, and then simply leave the store. This is possible through their in-store technology which through sensors, computer vision and deep learning capabilities automatically identify which items a consumer picks up, puts back and thus manages a digital shopping cart whilst they're in the store. Following this, when consumers leave the store, they’re charged and sent a receipt automatically (Grewal et al., 2017, p. 2). Understanding different forms and innovations of the physical store is naturally relevant for this study as it intends to investigate the role of the physical store for Generation Z within omnichannel strategy. This knowledge helps to understand that the physical store can satisfy different types of needs as well as how the physical store can complement other channels within an omnichannel approach.

3.2 Consumer behavior in an omnichannel context

Following the broader chapter of omnichannel, three subchapters concerning consumer behavior will be reviewed. The three subchapters concern elements accustomed to behavior relevant for not only physical stores, but behavior present across various channels in an omnichannel context.

3.2.1 Customer Experience

Within omnichannel retail, customer experience has turned out to be increasingly important, especially in relation to the physical store that offer an environment for socialization, interactivity and communication throughout the usage of sensory cues (Alexander & Blazquez Cano, 2019, p. 3) According to Verhoef et al. (2009, p. 38) customer experience

strategy is about constructing the customer's experience in order to create value for the customer, but also for the firm. In a study of Bustamante and Rubio (2017) the researchers provide a theoretical review of customer experience within the context of the retail environment. Customer experience can be explained as the outcome of the interaction between an object (experience provider) and a subject (customer), as well as the co-creation action between them (Bustamante & Rubio, 2017, p. 886). Further, customer experience can be understood by the following central components: (1) cognitive experience, (2) affective experience (3) social experience and (4) physical experience. (Bustamante & Rubio, 2017, p. 886; Verhoef et al., 2009, p. 32).

Bustamante and Rubio (2017, p. 890) describe that cognitive experience can be explained as the ability for an individual to process information obtained from acquired knowledge, perceptions or subjective characteristics (Bustamante & Rubio, 2017, p. 889). Cognitive experience occurs when the consumer converts interactions into thoughts, e.g. when a customer's thinking gets involved when interacting with products or the servicescape (Bustamante & Rubio, 2017, p. 890). Further, in order to enhance this, firms strive to use different stimuli to raise the customer's thinking and fulfill cognitive experience. Secondly, affective experience is highly connected to the customer's emotions towards an object, situation or happening (Bustamante & Rubio, 2017, p. 890). A customer's emotion can be influenced by different stimuli, that further can change the customer's behavior. Social experience explains the value and quality of the established interactive relationship between a customer and other individuals in a social environment (Bustamante & Rubio, 2017, p. 891). Furthermore, in a retail context the customer can establish this relationship either with employees, or other customers. Lastly, physical experience refers to the internal psychological response a customer has to the servicescape or store environment, that further can influence the customer's level of comfort or discomfort (Bustamante & Rubio, 2017, p. 892).

Homburg et al. (2017, p. 384) explain customer experience as the involvement of an individual's affective, cognitive, relational sensorial and behavioral responses to a firm throughout a journey of different touchpoints including pre-purchase, purchase and post purchase stages. Similarly, according to Rose (2011, p. 28) customer experience can be explained through different components. Hence, the author highlights two key aspects of customer experience; affective and cognitive experiences. These two key aspects have also been incorporated in the study of Gao et al. (2021, p. 13) investigating customer experience in an omnichannel context. Where the cognitive aspects are connected to functional information or facts about the product or service, such as price or product quality. Cognitive experience can also e.g. concern how efficient consumers can acquire a product or a service (Gao et al., 2021, p. 14). Further, affective experience is explained as the perceived enjoyment, pleasure and entertainment of the shopping process.

Understanding customer experience and its different components is relevant when studying the role of a physical store within an omnichannel strategy, in order to grasp how different factors can influence and create value for the customer when interacting with a retailer's different touchpoints. Lemon and Verhoef (2016, p. 34) highlights that creating a seamless experience across both offline and online channels actually can result in a greater overall perceived customer experience. In that sense, it is relevant to incorporate the customer experience point of view for this study.

3.2.2 Shopping Behavior

Kim et al. (2018, p. 306) emphasize that due to the expansion of the Internet and mobile devices, the shopping behavior of customers have changed rapidly. Historically, consumers used the same channel with the purpose of both searching and buying products/services, but today can use different channels like, websites, catalogues, physical stores, mobile applications to search or purchase (Kim et al., 2018, p. 306). Furthermore, how and why consumers use different channels may differ depending on whether it is online or offline channels (Chu et al., 2010, p. 252). For some consumers online stores might be the primary shopping channel, while the physical store is seen as a channel to search for items or returns, whereas for other consumers the shopping pattern is vice versa Chu et al. (2010, p. 252). The procedure of searching information online and then purchasing the product in a physical store whereas the consumer can touch and test the product is called webrooming (Kim et al., 2018, p. 306). According to Kim et al. (2018, p. 306) webrooming is a growing trend and is nowadays becoming the norm of consumer’s shopping behavior. Kim et al. (2018, p. 307) further stresses that the characteristics of mobile channels have further changed the archetype of retailing. Traditionally, in the context of a physical store the customer only interacts with the retailer while they are physically in the store. However, using mobile channels, the retailer can also provide real-time information before or after the purchase, e.g. using location-based services (Kim et al., 2018, p. 307).

Simultaneously, Kim et al. (2018, p. 307) highlight that in contrast to this trend, there is still a noteworthy number of consumers that still prefer the search for products through offline channels. This aligns with the findings from the article of von Biel (2020, p. 224) that implies that offline stores are an important channel for showrooming. Showrooming describes the procedure when a customer visits the store before they make the purchase online (von Biel, 2020, p. 224). Von Biel (2020, p. 224) highlights that mobile channels will be a vital tool for showroom locations, since it can enable customers to e.g. compare prices, find extensive information and actually buy products online while in store.

How consumers behave during their shopping process and how they use the physical store with respect to offline channels, is important to understand for retailers in order to gain insights on how to allocate resources and integrate different channels. Therefore, the understanding of shopping behavior is relevant for this study, that will explore the role of the physical store within omnichannel strategy.

3.2.3 Customer Journey

Along with the increase of channels within omnichannel strategy, customers interact at different distinct so-called touchpoints along their customer journey (Hagberg et al., 2017, p. 267). Which Baxendale et al. (2015, p. 236) defines as “episodes of direct or indirect contact with a brand”. Further, Hagberg et al. (2017, p. 267) argue that with the evolution of moving from solely physical stores, to incorporating online channels, these touchpoints have increased in number and grown increasingly important for retailers. Especially since consumers maintain specific preferences for which channel, online or physical, provides the best appeal or/and value. In such an omnichannel journey, the authors argue for the role of the physical store and how it enables value driving benefits for the omnichannel journey of a customer.

With such an increase in channels within the context of omnichannel, Lynch and Barnes (2020, p. 474) explains that the customer decision journey has grown to be more complex,

and where researchers still seek to establish models to explain these more complex customer journeys. Further, the authors allude to the eagerness among researchers in revisiting consumer decision-making models to further understand the role of each channel at the various different stages in the decision-making journey, as well as consumer behavior across the channels in an omnichannel context (Lynch & Barnes, 2020, pp. 474-475). This complexity is due to the increasing number of touchpoints along the customer journey, where consumers interact both with online, offline and other indirect channels such as social media where consumer-to-consumer interaction occurs (Lemon & Verhoef, 2016, p. 69). This, as argued by Lemon and Verhoef (2016, p. 69), presents a variety of challenges and opportunities for firms, but also yields a decrease in control over both the customer experience and customer journey. Which leads to behaviors such as showrooming and webrooming (Lemon & Verhoef, 2016, p. 69; Flávian et al., 2016, p. 459).

With both the traditional single channel strategy and multichannel strategy, the channels were handled in isolation, which yielded an increased control over the customer path to purchase (Lynch & Barnes, 2020, p. 476). This is because the customer decision journey, or path to purchase, was envisioned to be more linear. Moving along the stage of pre- purchase, purchase and lastly post-purchase stage within one channel in a single purchase process (Grewal & Roggeveen, 2020, p. 4). But as argued by Grewal and Roggeveen (2020, p. 4), the customer journey is becoming more nonlinear. In which consumers now can jump between channels within a single purchase process. Which is very much the case for consumers involved in an omnichannel oriented purchase process (Kazancoglu & Aydin, 2018, p. 960).

Lynch and Barnes (2020, p. 478) establishes a framework for the high-involvement consumer’s customer journey. Their results indicate high expectations from fashion consumers surrounding the seamlessness and consistency across channels along their customer journey. In part since consumers have become accustomed to jumping between channels which in turn have also increased future expectations of similar experiences. Two factors synonymous with omnichannel retailing (Lynch & Barnes, 2020, p. 478). Some of the key findings are risk-reduction elements present in the pre- and purchase stage of the customer journey. Where consumers would extensively search and compare across various channels and brands. Both for inspirational purposes, as well as to reach a point of saturation, so as to reach a point of research satisfaction; they have checked everything that is available. This was due to a phenomenon known as FOMO (fear of missing out). Which is indicated by consumers' extensive search and comparison, to not miss anything (Lynch & Barnes, 2020, p. 480).

When the consumers were finished with their research, they’d go out and try the items in- store. Namely engage in webrooming (Lemon & Verhoef, 2016, p. 69; Flávian et al., 2016, p. 459). This risk-minimizing behavior is later present in the evaluation phase, where participants would ask the opinion of others. Which acted as a defining element of the evaluation phase, in which the opinion of others directly affected the purchasing decision. A behavior Lynch and Barnes (2020, p. 480) argue is another risk-minimizing behavior among high-involvement fashion consumers and indicates that the customer journey in an omnichannel experience is inherently a social experience. When the consumers were ready to purchase an item, they searched for promotional offerings online so as to reduce the cost of said item, but to also not miss out on any better offers (Lynch & Barnes, 2020, p. 481). The result in Lynch and Barnes (2020) research alludes to the previous mentioned challenges retailers face in an omnichannel context due to customer behavior (Lemon & Verhoef, 2016, p. 69; Flávian et al., 2016, p. 459), where consumers do extensive research online prior to purchase, try the clothes in-store, to later purchase the item online. Below

you can find the framework (Figure 1.) developed by Lynch and Barnes (2020, p. 478), showcasing the omnichannel customer decision-making journey within fashion retail. The framework shows an enriched series of stages in the decision-making process, the affective experience as well as different devices and channels that are used at each stage of the customer journey (Lynch & Barnes, 2020, p. 478). Further, the framework emphasizes initial expectations and characteristics in the process of the customer journey that eventually results in potential outcomes such as loyalty, satisfaction and trust.

Figure 1. The omnichannel customer decision-making journey framework for fashion. Source: Lynch & Barnes (2020, p. 478) Even though Lynch and Barnes (2020) describe the customer journey as complex and nonlinear, they present different general stages of the customer journey, presented in the figure above. A customer’s journey typically begins with an inspiration phase, where consumers gather inspiration from various sources. This inspiration phase consequently fuels the following stage of research and comparison (Lynch & Barnes, 2020, p. 480). Where, if a consumer has been inspired, they conduct research about one or more items and compare various items on offer. Following this stage, consumers engage in an evaluation phase, which is either done online or offline, much like the earlier stages (Lynch & Barnes, 2020, pp. 480-481). But where the physical store is prominent due to its try, touch and feel possibilities. When the consumers are ready to purchase an item, they may do so in-store, or continue their search online in search of better offers. The final stages of delivery, return and show & share depends on channel choice (Lynch & Barnes, 2020, p. 481). Those who’ve ordered online take delivery of their purchased item and may either return it or keep it depending on satisfaction. If satisfied, it’s not uncommon for consumers to share their satisfaction among friends and through social media (Lynch & Barnes, 2020, p. 481).

Understanding the customer journey and its various stages and aspects, is interesting for this study in order to identify how and when the physical store is relevant for Generation Z

during their shopping journey. It may thus contribute to identifying what value and role the physical store holds in contrast to other channels.

3.3 Attributes of Generation Z

Among all the generations, people born within the generational gap known as Generation Z, are considered to be “digital natives” since they’re the first generation to be born and brought up surrounded by digital communication. Being born between 1995 and the beginning of the 2010s (Djafarova & Bowes, 2021, p. 1; Priporas et al., 2017, p. 376). Consequently, as a generation, they consume more content than any other generation; spending around 11 hours liking, reading and sharing material across all their devices each day (Djafarova & Bowes, 2021, p. 1). And as a result, they’re more prone to be exposed to digital advertising on social media, scrolling through Instagram more than five times a day (Vitelar, 2019, p. 265). Generation Z make up around 32 percent of the global population and are projected to have a major impact on future sales globally (Wolf, 2020, cited in Djafarova & Bowes, 2021, p. 1), which make them an interesting segment to study. Additionally, Priporas et al. (2017, p. 376) argues that Generation Z are less loyal towards retailers as they expect them to get the product to them. And with this, retailers experience pressure in establishing and maintaining the attention of Generation Z, because they have no brand loyalty, maintain higher expectations and put emphasized value on the experience (Priporas et al., 2017, p. 376).

In a study by Vojdovic (2019, p. 110) the author elaborates on the findings of a separate study which sought to establish the wants and needs of Generation Z. A study which, through a survey, covered 15 600 members of Generation Z, from 16 different countries. The study indicates that whilst Generation Z are known as the digital native generation, they most often choose to shop in a physical store, to the extent that 98 percent do so. Beyond this, several other key characteristics of Generation Z were identified, presented in the figure below (Figure 2).

Key elements Main characteristics

• Full of surprises General • Looking for reliability and consistency whether they shop in a features store, through an app or on a website • 47 percent of Generation Z customers use their smartphones when shopping in store • Wide product choice Store • Proximity of store location attributes • Product availability Generation Z shoppers • Technology for easier, more rewarding shopping Technology • Adding value and enhancing shopping experience • Little patience for technology that is unresponsive or prone to errors

• Actively collaboration and co-creating with brands Brands • Engaging with the brand on their terms • Social media interaction with the brand

Shopping • Desire for unique shopping experiences experience • Co-creating shopping experience

Expectations • Customization, robotics, augmented reality (AR) and virtual reality (VR) Figure 2. Generation Z shoppers. Source: Vojvodic (2019, p. 110)

Another key finding in the study of Vojvodic (2019, p. 112) indicate that there should be a focus of introducing new smart technologies in a physical retail context, and that a deeper understanding of how smart technologies affect Generation Z´s customer experience is needed, as well as customers attitudes and preferences when it comes to smart technologies.

In the study by Priporas et al. (2017) the authors examine perceptions and expectations of Generation Z in regard to the future role of smart retailing, by performing 38 in-depth semi- structured interviews with consumers. The findings show that the consumers most frequently use smart technologies like self-check-outs, new payment methods through smartphones, and digital signs (Priporas et al., 2017, p. 377). The study also reveals that consumers seek improvement of smart information technology that can help the consumer to match their desires with the most suitable offering, as well as to locate product offerings they are searching for (Priporas et al., 2017, p. 379).

Even though Generation Z is not yet a generation with high purchasing power, the generation will in a short manner of time become the frontrunner of shaping the coming norms of consumer behavior (Šramková & Sirotiaková, 2021, p. 8). This aligns with the statement by Sharma et al. (2019, p. 194), that highlights that younger generations have a great impact on the current and future of omnichannel retailing. Furthermore, Generation Z currently does not have a significant interest in buying products like groceries or other household products, however they have a great interest in products and services that can satisfy needs connected to their appearance or position in social groups (Šramková & Sirotiaková, 2021, p. 8). These types of products can strongly be connected to the fashion industry.

3.4 The Swedish Fashion Industry

What we know as retail today began in the early 1800s once businesses who typically conducted their daily operations in a marketplace, common for early trade in the Swedish countryside, moved into stalls in market halls and larger department stores (Hagberg & Jonsson, 2016, pp. 33-34). Which uniquely put a large variety of supplies and products under the same roof. Following this, in the early 1900s, business was in large parts composed of personal meetings between customer and an in-store employee, but also dealings through mail-orders assisted by catalogues and telephone. For some time, this was the norm. The more significant change came with the introduction of self-service, with shopping carts and baskets, in which customers could pick up the desired goods in-store and later pay for them at the checkout, assisted by employees (Hagberg & Jonsson, 2016, pp. 33-34).

In the 1990s, the internet came to be, which subsequently led to the inception of e-commerce stores. Along this, many already established physical stores took advantage of the internet, and took their business online (Hagberg et al., 2016, p. 698). As a result of the internet, retailers could now not only engage in distance selling, delivering goods to consumers' postal office, door or mailbox, but take their business global, increasing assortment and accessibility, which by extension opened the door for additional business opportunities (Hagberg et al., 2016, p. 695). The proceeding increase of e-commerce, where physical stores expanded their business to also exist in the form of e-commerce, and usage of

smartphones narrowed down the space between store and consumer, bringing the store to the consumer (Hagberg & Jonsson, 2016, pp. 39, 71).

Many believed, and still believe, that the arrival of e-commerce posed a threat for the traditional physical store, as consumers now had the ability to order online. This in turn would thus greatly affect if not replace the traditional brick-and-mortar stores (Hagberg et al., 2016, p. 703). Yet, the opposite has proven true as well. Where the internet is used to reinforce the physical store with digital technologies e.g. through enhancing product display, information access and mobile apps (Pantano, 2016, p. 150). These technologies, according to Poncin and Ben Mimoun (2014, p. 851), may improve the physical points of sales, increase sales and attract more customers. And possibly reduce the distance between the online and offline atmospherics. According to Hagberg and Jonsson (2016, p. 62), the appearance of new trading formats derives from using both digital and physical instruments. Further, they emphasize that the use of digital tools in physical stores may enhance and strengthen the consumers’ experience whilst visiting a physical store. Which they argue will become an increasingly important factor in order to attract consumers to the physical store (Hagberg & Jonsson, 2016, p. 71).

3.5 Summary literature review

Figure 3 explains the relationship between the different subchapters of the literature review. We begin with an elaboration on digitalization, physical stores and their role within the concept of omnichannel strategy. As we believe digitalization to be a core reason to which multichannel and later omnichannel strategy came to be, it serves as a foundation to this thesis. In large part due to their role in changing and affecting attitudes and behavior among consumers, and subsequently, the customer journey, shopping behavior and customer experience. But also, to put further emphasis on the role of the physical store, and consequently how the physical store may contribute to the understanding of customer experience for consumers, its role in the customer journey and its associated influence on shopping behavior. In part due to the so-called retail apocalypse, it’s of increasing importance for retailers to extract value from their physical stores when the popularity and contribution of e-commerce is growing. Along with the expansion of e-commerce and online channels, the customer journey has grown more complex. As well as supplying a competitive customer experience for consumers. Within this context, the role of the physical store has changed, from previously being the sole channel throughout the customer journey, to perhaps only being present at a single stage for various reasons such as inspiration, returns, showrooming etc. For retailers, it’s important to understand the customers' segments of interest. A large portion of consumers today use various modern technologies to assist them when purchasing clothes, either online or in-store. But Generation Z is the first “generation” to have grown up in a digital world. Being influenced by older generations as well as shaping the future of retail. It’s therefore of interest for retailers to understand the generation which not only currently influence omnichannel strategy, but who with time, will come into their purchasing prime and contribute even more to fashion retailers’ earnings.

Along with the elaborated subchapters of the literature review as well as the model of Lynch and Barnes (2020) showcasing the omnichannel customer journey among fashion consumers, we’ve summarized the various parts of the literature reviews with the subsequent figure. As stated in the beginning of the literature review, digitalization functions as the commencement from which multichannel and omnichannel strategies came to be. And consequently, this evolution-like process came to change customers and firms in various ways. As the literature states, customers shopping behavior, customer experience

and customer journey has changed as a result of omnichannel retail. And retail companies continuously try to grasp how consumers e.g. traverse, value and act within the aforementioned concepts. As a generation, Generation Z remains somewhat academically unexplored in comparison to older generations. With this thesis we aim to expand the limited knowledge about Generation Z’s attitudes and preferences for the physical store in an omnichannel context.

Figure 3. Conceptual theoretical framework. Source: Authors

4. Practical Methodology In this section of the thesis we’ll divulge and discuss the practical methodology. We begin with presenting the research design adopted for the thesis, followed by the data collection method and sampling technique. Further, expand upon the data collection tool and themes of the related interview guides. Following this, we present the interview process, analysis method, as well as relevant quality criteria and ethical considerations.

4.1 Research Design

The ensuing steps need to be considered in order to answer our research question (Saunders et al., 2016, p. 163). David and Sutton (2016, p. 95) emphasizes that the more customary used approaches in scientific studies so as to collect data are the quantitative and qualitative methods. The purpose of this thesis concerns understanding of the subjective and socially ascribed connotations expressed by individuals, in terms of consumers and managerial perspective, about the role of the physical store in an omnichannel strategy. Consequently, the chosen methodological approach for this thesis is qualitative. The qualitative method concurs with an interpretive philosophy, which by default aligns itself with our epistemological stance (Saunders et al., 2016, p. 168). Qualitative research aims to make sense of words and non-numerical data, in which the analysis relies on data in the form of text, and not numerical data as in the quantitative method (Bryman & Bell, 2015, p. 38; Saunders et al., 2016, p. 165). The quantitative method typically relies on an objective perspective where numbers and statistical assumptions are commonplace. Which as a method functions as a suitable tool to measure and present data showcasing the frequency of a phenomenon, where you as reader can easily observe the statistical nature of the research, but where emotional attachment aren’t suited (David & Sutton, 2016, p. 87). By virtue, a quantitative method aligns itself with positivism and data collection techniques synonymous with quantitative methods, which for the purpose of this thesis would be disadvantageous for our suggested research question.

The purpose of the study is to gain a deeper understanding and expand the knowledge upon firm and consumer attitudes and values towards the role of the physical store in an omnichannel strategy. With this, a qualitative method became the natural choice. Further, considering the method of choice, we chose to perform interviews. Due to the thoroughness and innate depth allowed through interviews, we could therefore supply a deeper understanding to the field of study. According to Ahrne and Svensson (2015, pp. 37-38), the choice of a qualitative method yields additional focus towards the interviewee’s experiences, knowledge and perceptions, and allows us to make further discussion and analysis. Further, as researchers, we had the possibility to ask follow up questions, which may have culminated in deeper knowledge about the complexity of the subject (Denscombe, 2009, p. 627-628).

Saunders et al. (2016, p. 164) specifies that the nature of research may have either an exploratory or explanatory research purpose. The nature of the thesis derives from the formulated research question and how it is posed. This by extension, will shepherd the direction of the thesis into either an explanatory or exploratory direction, or a combination of the two (Saunders et al., 2016, p. 174). Saunders et al. (2016, pp. 174-175) establishes that a more typical way to pose an exploratory research question is with the inclusion of either “what” or “how”, so as to conserve the possibility to clarify a problem or phenomena. The research question of this thesis is posed the following way: “What is the role of physical fashion stores within omnichannel strategy, in regard to Generation Z?”, which alludes to an exploratory direction.

This study has a consumer-focused research approach and therefore the data will be conducted by studying consumers. However, in order to gain a second perspective of the research phenomenon we will use a triangulation method, by also gathering data that gives a managerial perspective. According to Bryman (2013, p. 354) triangulation means that more than one method or information source is used in order to validate results and receive a more holistic perspective of the research phenomena. For this study this will enhance a more nuanced view of the role of the physical store within omnichannel strategy as well as understand if consumers and fashion managers have the similar perception of this research phenomena.

4.2 Data Collection Method

The data collection method used in this study is interviews. This study aims to understand attitudes and perceptions of the role of the physical store within an omnichannel strategy. Therefore, we wanted to use a data collection method that allows us to gain deeper knowledge of the research area, within the specific context of the study. Interviews were used as it offers a number of characteristics which we consider appropriate and enriching for this study. Ritchie et al. (2014, p. 55) points out that interviews as a data collection method is based on the idea that the respondents of the study construct their own social reality as individuals and that through a dialogue can convey their own insights and beliefs about their situation. This aligns with the philosophical research assumptions of this study, having an interpretivist approach of knowledge and social reality. Interviews also acknowledge the researcher to grasp underlying factors and gain deep understanding of different opinions in order to generate new insights and knowledge of the researched area (Ritchie et al., 2014, pp. 183-184), which this study strives for.

Further, the interviews have been conducted semi-structured. These types of interviews allow the researchers to combine structure with flexibility (Ritchie et al., 2014, p. 183). This entailed that we had the opportunity to ensure some specific themes were addressed, simultaneously as the respondents could influence the data collection and lead into new areas. According to Bryman and Bell (2015, p. 124) semi-structured interviews allow the respondents to expand their point of view of different areas in a flexible way. Furthermore, semi-structured interviews allowed us to have a combination of open and closed questions, and the opportunity to ask supplementary questions if needed to explore new aspects of the research area.

As the intention was to perform semi-structured interviews throughout, exogenous circumstances often affect the outcome of research. Consequently, this is the case for this thesis. Although the exchange with the managerial respondent was intended as a video interview, this interview due to undisclosed reasons couldn't be performed as intended. Therefore, this interview was performed in an asynchronous e-mail exchange. This may prohibit the aforementioned benefits of semi-structured interviews. But, asynchronous communication, communication done in non-real time, does present some immediate benefits. Daymon and Holloway (2011, p. 227) argues in their research that this type of communication gives the respondent more time to consider the posed questions and ultimately be more pensive, being able to answer the questions in a timelier manner. As the respondent is in control over the timeframe, and not the researchers. This shift of control consequently led to higher quality input from their respondents. As they had more time to contemplate and divulge their answers (Daymon & Holloway, 2011, p. 227).

4.3 Sampling

In order to find respondents that could contribute to this study we conducted a number of criteria that describes important characteristics the respondents of this study should possess. The criteria were established at an initial stage of the study in relation to the research question. According to Bryman and Nilsson (2018, p. 498) this means that the criteria was established a priori. As already pointed out, this study has a consumer focus, which implies that the respondents are consumers. However, in order to enhance a second perspective, we have also conducted one interview with a manager working within the Swedish fashion industry. Consequently, we have formed two different groups of criteria; criteria for consumers and criteria for the fashion retailer manager. Criteria for consumers are the following:

• Belong to Generation Z (1995-2010) • Have the financial ability to purchase/shop their own fashion items • Frequent shopper of fashion items (shopping at least every second month)

These criteria were determined firstly in order to ensure that the respondents belong to the generation that the study intends to investigate. Further, since Generation Z is a relatively young generation we wanted to ensure that the respondents have both the opportunity and also normally buy their fashion items themselves, and not e.g. having their parents doing it for them, in order to ensure that the respondents have past experience of buying fashion items themselves. Lastly, we also wanted the respondents to be relatively frequent shoppers of fashion items since we believe this will make it easier for the respondent to answer questions about their preferences, attitudes and behavior connected to their shopping, compared to individuals who rarely shop for fashion items.

Further, the criteria for the fashion retailer manager are the following: • Working at a fashion company within the Swedish fashion industry • Working at a company that offers both physical stores and webshops • Working at a company that have generation z as one of their target groups • The manager has insights about the company’s general strategies of both online and offline channels • The manager has worked at the company at minimum two years

The first of these criteria were set simply in order to assure that the respondent works for a company that operates within the geographical area this study aims to investigate. By the second criteria, we wanted to make sure the respondent works at a company that offers both offline and online channels to their customers, in order to obtain a holistic approach of their omnichannel strategies that includes physical stores, but also other online channels. In relation to this we also wanted the respondent to be able to answer questions concerning both offline and online channel strategies, therefore we included the third criteria. Finally, we also wanted the respondent to have some experience within the company to make sure they have a depth of knowledge and understanding of their general strategies, hence, the last criteria was determined.

After the criteria was set, we initiated the search for respondents. As this study has a qualitative research design, it does not aim to generalize the results. Instead we want to bring an in-depth understanding of the role of the physical store within omnichannel strategy. Therefore, we have used a non-probability sampling method, which according to Saunders et al. (2016, p. 276) means that the individuals within the sample group do not have the same probability to be selected to participate in the study. Further, in order to find

respondents that fit the criteria we have used a sampling method that Bryman (2013, p. 392) describes as purposive sampling, which implies that the researchers strategically choose appropriate participants to answer the research questions. Saunders et al. (2016, p. 301) also describes that purposive sampling is often used in studies with small samples. With this sampling method it is not possible to generalize the results of the study (Bryman, 2013, p. 392), which nor is the aim of this study.

The search of respondents was conducted by contacting acquaintances that met the set criteria, where we provided general information about the study and asked if they wanted to participate. Furthermore, in the search-process of respondents in terms of a manager, we initially created a list of companies that met the set criteria and sent an email with the intention to get in touch with an appropriate person at the company. However, the response of these emails was unfortunately poor. We continued this process by searching for individuals working at the listed companies via LinkedIn. Eventually we got in touch with the CCO (Chief Customer Officer) of the Swedish fashion company Gina Tricot, who after receiving information about the study, agreed to participate. An overview of the respondents is presented in Table 2. None of the respondents expressed a desire to be anonymous, although given the opportunity, and thus the presented names are their own.

Table 2. Overview of respondents. Source: Authors

Respondent Year of birth Length of Type of Date (consumer) interview (min) interview

Elsa 1998 31min Online 28/4- (Zoom) 2021

Josefin 1997 25 min Online 28/4- (Zoom) 2021

Emelie 1996 24 min Online 29/5- (Zoom) 2021

Clara 1996 30 min Online 30/5- (Zoom) 2021

Marcus 1996 45 min Online 2/5- (Zoom) 2021

David 1999 28 min Online 4/5- (Zoom) 2021

Respondent Profession Length of Type of Date (manager) interview (pages) interview

Renée Säverot COO at Gina 4 pages Online (E- 3/5- Tricot mail) 2021

As described in the table above, six interviews were held with consumers and one asynchronous e-mail exchange with a manager within the fashion industry. Defining a “correct” number of interviews within qualitative research can be rather problematic. Ryen (2004, p. 79) highlights that the main focus should not be conducting as many interviews as possible, instead the researchers should strive to conduct as many interviews that can

provide an accurate presentation of the research phenomena. Furthermore, in a study of Witell et al. (2020, p. 3) the author emphasizes the issue of determining an exact number of interviews that are necessary for qualitative research, since new information in terms of specific details usually always is possible to find. The author stresses that instead of focusing on quantity, the quality and richness of the collected data is key. This implies that within qualitative research striving for theoretical saturation might be problematic. Instead, researchers should focus on reaching a point when new knowledge and information of specific details now longer changes the general picture of the research phenomena (Witell et al., 2020, p. 3), which have been strived for in this study. When conducting the sixth and last interview with the consumer respondents, we believed that new information did not change the overall picture of the research phenomenon, and therefore the results can be considered as saturated. The choice of only interviewing one manager stems from our choice of conducting consumer driven research, as its main purpose is lending a second perspective which allows us to compare and confirm possible aspects the consumer perspective.

4.4 Data collection tool

4.4.1 Construction of interview guides

Saunders et al. (2016, p. 391) emphasizes the importance of interview guides when performing semi-structured interviews. In order to lay a foundation for the subsequent themes and probable key questions from the respective interviews. Although the interview guide will be the same for each consumer interview, some questions may vary depending on the flow of the interview and whether a respondent touches upon something interesting, which could result in a unique follow-up question (Saunders et al., 2016, p. 391). Consequently, this means that potential follow-up questions won’t appear in the interview guide (Denscombe, 2009, p. 235). Even so, it is pivotal to present the questions in a sensible way, because it’s advantageous to go from broad to more narrow questions (Bryman & Bell, 2015, p. 488). The literature review and research question acted as the foundation for the interview guides so as to enhance the relationship to this thesis.

As this thesis’ primary perspective is consumer focused, whilst incorporating triangulation possibilities, it thus also includes a managerial perspective. Therefore, two interview guides have been constructed. One for consumer respondents and one for the managerial respondent. Both interview guides were based upon open questions and contain five distinct themes. This yielded structure and allowed for more efficient interviews. As this thesis takes on an explorative direction, open questions are particularly beneficial, as they allow us to explore and collect extensive information from the interviews (Collis & Hussey, 2014, p. 20).

Whilst the subsequent interview guides and table have been constructed in English, the actual interviews were performed single handedly in Swedish. Although English is the language of choice for this thesis, all the interviewees are Swedish. And as this is the case, we chose to perform the interviews in Swedish so the interviewees had the benefit of expressing themselves in their native language. If the interviews would be performed in English, as it is the second language of the respondents, we remain confident that the answers would not have been as elaborate.

In establishing structure for both the interview guide and the subsequent analysis of the empirical material, we’ve established the table below. The table consists of various interview themes, which goes along with a section of questions (see appendix 1 & 2), and

the related research area they fall under. The themes are thus connected to a specific research area, and consequently various articles which have inspired the questions found within each interview theme. This aims to provide an overview for not only the analysis, but also provide structure and understanding for the reader. The intro theme contains introductory questions in order to gain background information of the respondents. The theme of channels aims to establish an understanding of relevant channels, in which situations different channels are used and why. The theme of physical stores aims to establish an understanding about the value of the physical store in regard to shopping behavior, customer experience and customer journey. Further, to explore the possibilities and benefits of the physical store. The next theme of smart technologies in the physical store aims to explore the usage and deployment of smart technologies in-store so as to enhance e.g. customer experience and its purpose during the customer journey. The following theme of channel integration concerns elements of hardships and possibilities in integrating online and offline channels. The final theme of the future of the physical store aims to establish an understanding of just that, the future of the physical store, in order to understand desirable functions of the physical store and how it is expected to develop in the future.

Some questions are inherently unique for either the consumer or manager, whilst some questions remain identical, so as to allow for triangulation of the empirical material. The questions unique for the manager concerns questions such as: “How does your company work in order to integrate these channels?”. Questions which are uniquely interesting from the perspective of the manager. In contrast, questions posed to the consumers may include questions such as: “What perceived value does the physical service have to you in terms of shopping experience when shopping in a physical store?”. Which for very much the same purpose is uniquely interesting from the perspective of the consumer.

Table 3 provides an overview of the construction of the interview guide, in order to clarify which research area and articles are connected to each theme of the interview guide. Further, the specific questions within each theme have been inspired by the theories and articles that relate to that specific theme.

Table 3. Overview construction of interview guide. Source: Authors

Interview themes Research area Articles

Intro - -

Channels Omnichannel, offline/online Verhoef et al. (2015) channels, customer journey Savastano et al. (2019) Lynch & Barnes (2020) von Biel (2020)

Physical store Shopping behavior, sensory stimuli, Hagberg & Jonsson (2016) social interaction, customer Alexander & Blazquez Cano experience, customer journey (2019) Moreia et al. (2017) Wang et al. (2016) Bustamante & Rubio (2017) Gao et al. (2021)

Smart technologies in Customer experience, shopping Grewal et al. (2017) physical stores behavior Piotrowicz & Cuthbertson (2014)

Integration of physical store Cross-channel freeriding Chiu et al. (2011) and other online channels webrooming, showrooming, Kim et al. (2018) customer journey, omnichannel- von Biel (2020) strategy Lemon & Verhoef (2016) Grewal & Roggeveen (2020) Kazancoglu & Aydin (2018)

Future of physical store Customer experience, customer Gao et al. (2021) journey, shopping behavior Priporas et al. (2017) Summary - -

4.4.2 Pilot study

In order to test the interview guides we conducted two pilot studies, one for the interview guide designed for the consumer and one for the interview guide designed for the managerial perspective. A pilot study can help to ensure that the interview questions play out as desired and give a confirmation that the interview in general seems accurate (Bryman & Nilsson, 2018, p. 332). We used the pilot studies in order to test the design of the interview guide and its questions, as well as get an idea of the time frame of the interviews. We used the same questions that were meant to be asked in the real interviews and after the interview the participants had the opportunity to give feedback about specific questions as well as the overall impression of the interview. We also took notes of questions that we interpreted as difficult for the participant to answer. After the pilot studies were conducted we added, removed questions and also reformulated some of the questions. The pilot study intended to test the interview guide for consumers was held digitally, as a video call. However, since the managerial interview was performed by email, this pilot study also was performed over email.

4.5 The Interview Process

In total, seven interviews were conducted. Six interviews with consumers and one asynchronous email exchange with a fashion retail manager. Due to the current pandemic Covid-19, the interviews couldn’t be held physically, instead all the interviews were conducted via the digital video conference tool Zoom. Since this was a known condition already at the beginning of this study this enabled us to find respondents at geographically dispersed places. We are aware that physical interviews might have yielded a different result, i.e. since it allows us to observe the environment and more easily read body language. However, Saunders et al. (2009, p. 349) states that digital interviews offer easy access to respondents as well as time saving for both the researchers and the respondents. Moreover, the respondents were asked to approach the interview questions as if the current pandemic and associated restrictions wasn’t a reality. The intention was to collect information about the respondents’ typical behaviors and preferences, when not influenced by an external force such as the Covid-19 pandemic.

All interviews have been recorded in order to simplify the processing of collected data, as well as ensuring the respondents have not been misinterpreted or that valuable information has been missed out. Both researchers of this study participated during all interviews, where one had the role of interview leader whilst the other had a more passive role asking some follow up questions if necessary. One of us was responsible for four interviews and the other

for three interviews. All the recorded interviews have been transcribed and proofread, to ensure the transcription was aligned with the recordings.

4.6 Data analysis method

The analysis of the empirical material of this study was inspired by the process of a thematic analysis that Braun and Clarke (2006, p. 79) describes as a procedure that identifies and analyzes different patterns, also called themes, of the collected data. Further, this study has applied a theoretical thematic analysis, meaning the analysis is driven by the theoretical framework of this study and the coding process is related to the specific research question (Braun & Clarke, 2006, p. 84). The first step explained by Clarke and Braun (2006, p. 87) concerns getting familiar with the collected data. In our study we conducted the transcriptions directly after the interviews, meaning the transcription and interviews were conducted consecutively. After all interviews were finished, we re-read all the transcriptions in order to get even more familiar with the data and also ensure the transcription corresponded with the recordings. The second phase presented by Braun and Clarke (2006, p. 88) involves creating initial codes from the collected data. In this phase we reviewed the transcriptions one by one and marked interesting sentences and applied a code in terms of one or a few words that reflected the main message of the content. In this stage we strived to create the codes as closely related to the empirical material as possible, which according to Thornberg and Frykedal (2019, p. 49) is important to consider when producing initial codes. When all of the transcribed material was elaborated and all initial codes were conducted, we continued to the next phase which Braun and Clarke (2006, p. 89) call searching for themes. In this phase we used all the codes in order to identify common factors or other patterns in relation to the theoretical framework that could unify different codes into an overarching theme. Braun and Clarke (2006, p. 82) describes that a theme should capture important aspects of the collected data in light to the research question, as well as reflect some level of patterned meaning or answer of the collected data. This has also been considered in or study when identifying relevant themes.

Further, the next phase concerns reviewing themes (Braun & Clarke, 2006, p. 91), which means that the set of themes are evaluated and elaborated to make sure they match the coded extracts as well as the overall picture of the collected data. In this phase we discovered that some themes weren't really relevant and we also realized that some themes could be developed into two different themes. After this process, we assigned each theme a name, and defined each theme which is the next phase of the thematic analysis presented by Braun and Clarke (2006, p. 93). This analysis process ended up in seven different themes which constitutes the structure of the analysis and discussion chapter. The majority of the themes are in direct connection to the theoretical framework, however some themes emerged during the processes of analyzing the empirical data.

4.7 Quality Criteria

Guba and Lincoln (1994, cited in Bryman & Nilsson, 2018, p. 467) elaborates on four distinct core principles which may aid in establishing the quality of a qualitative study. These four principles are as follows: The opportunity to be proven and confirmed, transferability, credibility and reliability.

The principle of the opportunity to be proven and confirmed, acknowledges that our theses has been influenced by our interpretivist approach to knowledge and reality. As this thesis mediates subjective perspectives to the research area, it also provides the possibility for a deeper understanding of said area. Further, we’ve to our utmost ability tried to not include

our own thoughts and opinions throughout the material, as well as not guide the results in any particular direction. Additionally, we do not possess professional experience within the research area, nor full academic understanding, which could influence the results and consequent analysis of the material to take a specific direction. Thus, we would argue that we do not possess sufficient knowledge within the researched area to influence towards a specific direction. But we do acknowledge our influence on the conclusion and consequent recommendations, as they are highly influenced by our methodological approach. And if future researchers would like to replicate our study, the probability of replication remains unlikely, as a pool of other respondents may supply a different conclusion.

The second principle of transferability has also been considered. As the main objective of this thesis is to explore Generation Z’s attitudes and preferences surrounding the physical store in a fashion retail, omnichannel strategy, the context and clarifications of the assembled data is essential. As this is the case, this thesis does not aim to provide results which could fully be generalized. But we have strived our best towards describing the context the respondents find themselves in, their shopping behavior, customer journey and overall shopping disposition, so as to our best ability allow other researchers to contemplate the thesis’ transferability into other contexts. Further, Guba (1981, p. 86) highlights that in a generalizability vacuum, a preemptive action is to collect more data so as to contribute with imperative information to consequently make meaningful interpretations and conclusions to the study at hand possible. Therefore, utilizing a multitude of interviews and literature will help us impart information which may uphold the transferability principle.

Thirdly is that of credibility. Which for this thesis, may have benefited from the fact that we interviewed only a relatively small set of respondents. As it has allowed us to present the empirical material very near to its original transcribed version. But, as researchers keep a close knitted relationship to the material as in the case of qualitative research, this also presents a problem. As researchers need to collect-, transcribe- and translate the data to make it comprehensible, it’s also seen as a notable threat to qualitative research (Guba, 1981, p. 81). Therefore, it’s of paramount importance to provide transparency. That the process in which data is collected and translated, is as transparent as possible and the consequent steps and choices taken for the design of the study can be followed by readers and respondents alike (Rasmussen et al., 2006, p. 117). With the number of interviews performed, we’ve been able to use large sections of each interview, without having the need to summarize and compile the interviews so as to produce comprehensible material for the empirical section of the thesis. Consequently, this should increase the degree of credibility. Further, Eriksson and Kovalainen (2008, p. 294) emphasizes that credibility is increased when quotes from the performed interviews are imparted throughout the analysis. Moreover, this also applies to whether the interviews were recorded and if the transcribed material was coded. So as to allow comparison between interviews. In the case of this thesis, all of the aforementioned have been attained. Further, all respondents had the opportunity to review the empirical chapter, to validate that the empirical data gives a truthful explanation of their intended answers. However, none of the respondents had any objections concerning the empirical material.

Lastly, it is the principle of reliability. Which for this thesis has been enacted at length by presenting a complete exposition of the methodological path taken throughout this thesis. In this thesis, we, as researchers, have appropriated an analytical approach in order to sufficiently describe and motivate the decisions taken throughout. To present each decision as transparent and as detailed as possible. But also, to elaborate and debate various parameters of interest and their consequent influence on this thesis. Moreover, we’d like to emphasize that the respondents' answers and elaborations may reflect their thoughts and

opinions at the point and time of this study, which consequently may have been affected by the current pandemic. Although we sought reflections upon the thoughts, opinions and behaviors of respondents’ pre-pandemic.

4.8 Ethical Considerations

In order to ensure our study is in line with ethical research restrictions in regard to the participants of the study, we have followed four ethical principles presented by Bryman and Nilsson (2018, pp. 170-171); need of providing information, need of compliance, need of confidentiality and need of utilization. The first principle concerns the need of providing information, which has been followed by informing the respondents about the purpose of the study as well as how their answers will contribute to the research, prior to the interviews. After this information was provided to the respondents, they had the opportunity to decide whether they wanted to participate or not, which concerns the second principle of compliance. This principle was further treated by informing the participant they had the right to reject answering questions or cancel the interview at any time. The third principle that concerns confidentiality was treated partly by giving the participants the choice to be anonymous, but also by only collecting information that was relevant for answering the research question and the purpose of the study. However, none of the respondents wished to stay anonymous when asked, therefore their real names are used in the empirical chapter. Lastly, the principle concerning utilization has been considered by ensuring that the collected data and the audio files from the interviews only have been available for the researchers of this study, and deleted when the study was completed.

5. Empirical Findings In this chapter the results from the interviews will be presented that aim to answer the research question “What is the role of physical fashion stores within omnichannel strategy, in regard to Generation Z?”. The empirical material from the consumer respondents will be presented separated from the managerial perspective. Finally, we will present a summarizing table to highlight key findings from each respondent.

5.1 Consumer perspective

This section will present the findings of the six consumer respondents. The structure of this section has been based on the structure of the interview guide in order to give an as transparent and truthful presentation of the empirical material as possible.

5.1.1 Presentation of the respondents

Elsa is a 23 years old full-time student in Gothenburg, and also works as an influencer. She has a great interest in fashion, both through her job as an influencer but also in her private life. She normally purchases fashion items every month.

Josefin is 24 years old and a full-time employee and lives in Stockholm. She works for a recruiting company. She has an avid interest in fashion and purchases fashion items frequently, every month.

Emelie is 24 years old and a full-time student in Rotherham, England, but currently resides in Örnsköldsvik. Privately she has an interest in fashion, in which she purchases fashion items twice a month.

Clara is 25 years old and a full-time student at Umeå University. She describes herself as having a mild fashion interest, but a great interest in dressing well. She purchases clothing items twice a month.

Marcus is 24 years old and a full-time employee, employed as an Audit Associate in Stockholm. He considers himself as having a great interest in fashion and dressing well.

David is 21 years old, self-employed and lives in Umeå. He described himself as having an avid interest in fashion. He believes it’s important to dress well and purchases fashion twice a month.

5.1.2 The use of different channels

All the consumer respondents use various channels, offline and online, throughout their purchase path. Most notably, all consumers use various online channels for inspiration and information searches. This includes retailers’ websites and apps, but also social media sites such as Instagram and Facebook. But, to which degree inspiration and information is actively gathered, various as well. All elaborate on how inspiration and information is consumed passively throughout their daily lives, every day. But in terms of active inspiration and information gathering, the frequency of actively searching varies from every day to less often.

Clara, Josefin and David all describe that they normally do not actively search for inspiration and information about fashion items, however they do mention that it's common that they come in contact with fashion items unintentionally e.g. through social media. They also elaborate on finding inspiration whilst visiting various physical stores, suggesting a passive consumption of inspiration and information. And then, after they noticed something interesting, they can do a more extensive search about the specific product mainly through homepages of different retailers. Clara mentions that she follows some fashion brands on Instagram which sometimes gives her inspiration, however she also emphasizes that she uses physical stores as a source for inspiration and finding information. David describes that if he searches for inspiration, even though it’s not that common, it is mainly through online channels, e.g. from influencers and social media. But he also highlights that if he’s in town, he can spot something in fashion stores and in that way find inspiration from a physical store. Josefin says she does not follow influencers, hence, sometimes she gets in contact with fashion items through Instagram´s explore feed. She also highlights that she sometimes uses apps of fashion retailers to look at their “new arrivals” and find inspiration.

On the other hand, Elsa, Emelie and Marcus seem to be more active in their search for information and inspiration of fashion items. Marcus as an example, although not explicitly active, does subscribe to various fashion and style podcasts, but also chooses to follow various fashion idols and icons on Instagram. It’s not an active search in the terms that he browses the web, but has taken a proactive choice and subscribed to various people and accounts across different mediums which he either watches or listens to weekly.

“Almost daily, I listen to a couple of fashion-podcasts, I usually watch Nyhetsmorgon as well, where they have those news features about style and fashion and so on. To see what’s trending. Then of course social media, or more specifically Instagram, where I follow many both style and fashion icons, profiles and also fashion stores. Furthermore, I do revise a clothing company at work, so even at work I do get a little part of that. It’s a hot conversation topic at work” - Marcus

Elsa on the other hand, a full-time student and influencer, browses social media and/or websites on a daily basis. Which she sees as a necessity, or part of her job. To keep herself up to date on various fashion trends or styles. But her own private interest in fashion also acts as a foundation. Emelie proactively searches for fashion inspiration on a near daily basis, which she does through websites of fashion retailers. She argues that she uses websites with various news-notifications as an Instagram substitute. Fashion websites are her “Instagram”. Where she keeps herself up to date and notifies herself on the current best- sellers across various fashion retailer websites.

“Like I have fashion websites sort of like social media, I check their news every day and I check their best-sellers sort of like every day, to keep myself updated. I’d say. But it is kind of like a little Instagram, so every day I visit Nelly, maybe twice a day and I visit NA-KD, Gina Tricot and H&M” - Emelie

But besides finding inspiration online, both Elsa and Emelie mention the physical store as a significant source of inspiration, although establishing that the online sphere is the main inspiration source. For Elsa, it heavily depends on the store, which store it is. Mentioning the benefit of seeing clothes in person, how they fit and getting the in-store feeling.

When it comes to the use of channels in terms of purchasing fashion items Emelie, Clara, Marcus all prefer to do their actual purchase in physical stores, but they all purchase online in some cases. Elsa describes that she most frequently purchases fashion items online. David

and Josefin also tend to purchase mainly online, but both of them also highlight that on some occasions, e.g. when purchasing jeans or other products where the size can vary a lot from different brands, they prefer to purchase in physical stores. Both Clara and Emelie mention they prefer the physical store as a channel for returns and refunds.

5.1.3 Attitudes and expectations of the physical store

In terms of attributes, all respondents elaborate on various reasons for why they visit physical stores. But also, several key components to when they would choose physical stores over online stores. And furthermore, what they’d like to see physical stores offer, which might not currently be offered.

An almost synonymous answer among all respondents, is the perceived opportunity of being able to touch and feel the clothes and garments. But also, the instantaneous gratification which physical stores provide. In that you can go to a store, browse the store, try something on, like it, purchase it and then bring it home straight away. Josefin elaborates on this, citing that instant gratification of physical stores remains a significant benefit if she’s in a hurry, as well as the benefit of being able to try it on and assure herself of her decision.

“One could go into a store, and touch and feel. It’s also faster to go into a physical store and try a product, purchase it and then bring it home, in comparison to online. So, it would be if I’d need something fast, then I’d rather go to a store and purchase it if I know it’s available in-store” - Josefin

Josefin, Emelie and Clara all explicitly express that they love physical stores. Additionally, for Elsa, it’s a source of quality and authenticity guarantee about a product. To assure herself that the product in question lives up to some degree of expected quality. But also, how it looks in real-life, as it may look quite different when viewed online. Furthermore, Elsa also elaborates on the enjoyment of visiting physical stores, which she finds more enjoyable than online. Which also connects back to the perceived benefit of seeing clothing items in person rather than online. Both Emelie and Clara state that they in general prefer physical stores over online channels when shopping for fashion items. Emelie explains that she often visits physical stores as a rather spontaneous activity, together with friends. Clara cites herself as a physical store-person. Where she much prefers the physical store to online shopping. Her reasons are also the benefit of viewing clothes in person, to compare sizes, but also to engage socially as entertainment.

“Because I think that things can look one way in a picture, but look completely different on a person. Yeah and insecurity about sizes, because it is more reliable if I purchase it in-store, because then I’ve already tried it” - Clara

“And entertainment is a part of it I’d have to say because I see it as an activity in a way. To stroll around town, although not just in clothing stores. It may be that I just walk around without purchasing anything. So, it’s entertainment in a way” - Clara

Marcus describes that he values the experience and the overall impression that physical stores provide. Both Marcus and David describe similarly as the other respondents, that they appreciate the fact that they are able to touch and feel fashion items and also try it on and see how it actually fits. Marcus and David also emphasize that the insecurity concerning sizes decreases when shopping in physical stores, the process of trying different sizes is efficient in physical stores and that they leave the store with an item they know fits them.

“...just that you can feel and touch a little bit and see how it fits yourself, and then it will be much easier if something goes wrong. You can just take a new item in another size or something completely different, instead of sending it back and so on with a delivery time of five days.” - David

An additional factor which contributes to the respondents’ experience of shopping in physical stores, is the service from in-store personnel. Several respondents find the in-store service from personnel to be a key component in their visit to a physical store. But what role it fills differs among respondents. Everywhere from the service personnel being significant in contributing with clothing advice, size suggestions and general recommendations. To one respondent not even wanting them to say hi when entering the store. Most respondents agree that they appreciate the presence of in-store personnel, but don’t like too much proactive service. The service should be on their own terms. Meaning they want the help when they need it.

“I mean, at the same time get help from the personnel who are there and can perhaps recommend other clothing pieces. That you can… can ask them. And because I’m a little familiar I think it’s a bit enjoyable to ask them as well, because they do work with it daily and are knowledgeable. They know the trends and what’s fashionable and stylish clothes” - Marcus

“High I’d say, if I’m insecure about a product it’s obvious that I need, or want the person to be honest, if the fit is good, or if I should try something else instead. If I’ve looked into a product, and perhaps it doesn’t fit me, then I’d still want the personnel to be honest and say “no, try this on instead”. I think It’s important that the staff isn’t too “selly”, but really that you have a salesperson that’s honest and nice, and doesn’t embrace too much of a sales-spirit. They’re there for the customer, they prioritize that instead of selling” - Elsa

Moreover, both David and Elsa expand upon their thoughts on personnel being too much of a proactive salesperson. Which for them is coupled with negative in-store experience. However, David expresses he still wants the staff to be available if he has any questions or thoughts.

“I would like them to approach me and say “hi, welcome” or something like that, but… and that they’re close-by when you need them” - David

For all respondents besides Marcus, the in-store service does not enhance the in-store experience through a proactive role, but by being there when needed. For Emelie and Josefin, they’d rather remain undisturbed, perhaps not even being greeted by the stores’ employees when they enter a store. For Josefin, it’s an obstacle in her way. She says that once she’s in her “purchasing-mode”, in-store service isn’t really that important to her experience. Emelie on the other hand, similarly to others, prefers the service staff to take a passive role and only be there when needed. But she’d even prefer if they don’t even greet her when she enters.

When considering factors, the respondents believe physical stores currently do not offer them, Josefin, Elsa, David and Emelie all emphasize they wish the physical stores were more efficient. Josefin would appreciate it if it was possible to do returns from home by mail delivery after purchasing something in a physical store, instead of going back again to the physical store. Josefin, Elsa and David describe the procedure of shopping online as

more efficient as shopping at physical stores. Emelie, Marcus and David describe they perceive the limited assortment physical stores normally offer, as a drawback. However, both Marcus and David highlight that even though they perceive this as a disadvantage, they do not think it would be better if the physical stores would expand their assortment too much.

“...then you would have to go an “Ikea-lap” for one kilometer and then still not find what you want, then half the day is gone, so it is not really appropriate.” - Marcus

The in store-styling is another factor that Elsa believes physical stores should improve, in order to provide more inspiration to her as a customer. She believes the in-store mannequins don't give her enough inspiration. Instead she would like to get more context into the styling so she can see how different items in the store can be matched together. Both Clara and David also believe physical stores could improve the in-store experience and environment by offering coffee, comfortable armchairs, nice music and a nice environment.

5.1.4 The physical store in relation to other channels

When comparing the physical store to other channels the respondents have both similar and opposite opinions. Josefin and Elsa clearly appreciate the fact that when shopping via online channels, like apps or webshops, the process is more efficient. Josefin explains the smoothness of just a simple “click” and then you get your products delivered home. She likes the fact that she can try the items at home, send them back if she wants to and she doesn't even have to pay for the items before she has decided that she really wants them. She describes this process as much more time efficient and smooth, compared to shopping in a physical store. However, she believes shopping in a physical store is more of a full experience, and appreciates shopping in physical stores even though she thinks it is more time-inefficient. Similarly, Elsa describes that she more frequently shops online since the process is more efficient, and she also thinks the styling of models online, both on social media and webshops, is more inspiring than the styling in-store. However, she still sees value when it comes to the experience of shopping in physical stores. Elsa explicitly emphasizes that she appreciates the combination of physical stores and other online channels. She describes that she might use a retailer’s website to get an overview of different alternatives in a smooth way, and then she can visit the physical store in order to assure what she has seen on the web is cohesive when she sees them in real life.

“...I would say I like the combination. Actually, it may not have anything to do with me preferring something over the other.” - Elsa

Marcus and David also appreciate the combination of using physical stores and online channels when shopping fashion items. Much like Elsa and Josefin, Marcus and David appreciate the efficiency of online. Both of them often search and get inspired online through social media and then visit a physical store where they can see, touch and try the items, and then they either purchases the item in store, or they go home to make further research online if they can find the items at a better price, and then order it online.

“...most of the time I also want the combination of internet and physical store, [...] like to check and get inspired and find something, [...] on social media for example, and then I go to a physical store and squeeze and feel it, and then either I buy it there if I'm happy, or I go home and check prices [...], and then maybe order it from home.” - Marcus

In contrast to Elsa, Emelie prefers the visual design and styling in the physical store, more than online. In her opinion webshops sometimes can be too much and it’s harder to orientate through all items, compared to physical stores. She appreciates that physical stores have different sections, divided in different colors or seasons and she believes it's easier to navigate when she sees it in real life, instead of on a digital screen. Clara provides a similar argument that she thinks it easier to orientate in the physical store when she sees it in real life, instead of scrolling on her mobile.

5.1.5 Smart technologies of the physical store

When it comes to using smart technologies in physical stores Josefin and Emelie describe that they prefer to use self-checkouts, instead of traditional checkouts, if it's available in the store. Emelie prefers it since she believes it is simpler and values that she can avoid queuing. Josefin also appreciates when she can avoid queueing and thinks it is more efficient. She also adds she does not think it's necessary to interact with staff to do her checkout.

“...when self-checkouts are available in stores I prefer using that before regular cashiers. It is definitely something I value...” - Josefin

In contrast, Marcus explains that he appreciates being able to do his check-out in a traditional way, receiving assistance from the staff in the physical store. He values being able to ask questions directly to the staff and receive immediate response, if he has any concerns. Despite that, the respondents do not seem to use any type of technology when visiting physical stores. However, several respondents shared ideas of smart technologies that they would appreciate when visiting physical stores. Elsa, Emelie and David all mention they would appreciate some type of smart technology in store where you can search for specific items and receive some type of navigation of where an item is located in the store. Clara mentions she would appreciate smart technology in store, e.g. in terms of a digital screen, that for example can show which sizes of a specific item is available in store and if something is out of stock she would like to be able to see when it's expected to be back in stock. Also, being able to see new arrivals at a digital screen is something Clara would appreciate.

“...for example, if there is a product that is out of stock in my size or something, then there could be a screen product, like ‘coming next week’ or ‘incoming’, or ‘currently out of stock’ [...] I would definitely use that...”

David also mentioned that he would appreciate being able to use some type of digital screen in the entrance of the store, in order to get an overview of what's available in the store and what is not.

5.1.6 Integration of physical store and other online channels

Some respondents use their smartphone whilst in-store. Although reasons vary between respondents, some use it in direct relation to their purchase, and some not at all. Marcus sometimes uses his phone to check negative reviews on items he finds in-store. But also, to compare prices between the stores who have the item of interest. David uses his phone to pay and use his various memberships. Elsa does use her phone whilst in-store, in the cases when she’s found something online, and wants to check with the staff if they have it there. Emelie mentions, when she has been abroad, she tried H&M’s app which had a function

that allowed the user to take a photo of an item they’ve found in-store, and thus see if other sizes are in stock, or if other similar items exist. Which was a highly appreciated function according to Emilie. Most of the respondents don’t use it all in relation to their in-store experience or purchase. But all respondents use their phone prior to visiting a store. All of which is done in preparation for a physical store visit.

In the case of Marcus, he almost always informs himself via the internet prior to a store visit. He inspects an item online, checks the stock balance, then proceeds to a store where he tries it out. But the websites or social media sites he visits beforehand, aren’t necessarily the same retailer he ends up visiting in the physical sense. Clara also sometimes inspect items beforehand, but does so from the same retailer she later visits. Emelie says she in one way does check online beforehand, but does so in general, and not in relation to what she later checks out in-store. But when she does inspect items beforehand, in relation to a future store visit, it is from the same retailer. It is much the same for Elsa, who, depending on the store, does adhere to the same retailer prior as when she visits a store.

5.1.7 The future of the physical store

Besides comparing the online store to that of physical stores, all consumer respondents were posed with questions surrounding the future of the physical store. Also, in terms of what the respondents believe physical stores should do so as to better compete with online-stores in the future, the respondents were clear. Emelie, Marcus and David elaborated that they wish physical stores would have a larger supply of clothes in the future. According to them, the limited assortment of physical stores gives a clear edge to online stores, where it’s much broader. Marcus and David also pointed out that increasing the supply of clothes in physical stores may prove difficult, as they are limited to a physical space. Several respondents, who otherwise shop more online, said that they’d shop more in physical stores, if the assortment size increased. To them, assortment size is a deciding factor in whether they’d visit a physical store.

Moreover, several respondents wish the physical store would become more efficient in the future. Josefin, Elsa, Emelie, Clara and David all desire this. As for how, it varies. But, all of them paint a picture of online stores, which is quick and simple. They wish some of the efficient elements of online stores would appear in physical stores. Most of whom relate to making the experience more efficient from the perspective of the consumer.

“Yes, but also the aspect of making it more efficient [...] having a little screen at the entrance of the store, where you can check the assortment supply a bit, and where things are located” - David

Clara indicates she would appreciate more efficiency though suggesting the physical store should offer different technologies that can make their shopping smoother and simpler. Another proposed digital tool in terms of efficiency, was shared by Emelie, who said that physical stores should, moving forward, offer more self-serving cash check-outs. But some respondents would also like to see physical stores play to their strengths. A clear benefit was the physical experience. Both Josefin and David added that what they felt the physical store needs to do, is to make the visit more of an experience.

“But I think, I mean, what physical stores will always have, which an app will never have, is the physical meeting, which some value greatly, and some less. But I think you’ll have to make the physical store more of an experience” - Josefin

David suggested that it would be lovely to be served a glass of sparkling wine, or coffee, when in-store, to enhance the in-store experience. Similarly, Clara also points out that she would like the physical stores to offer similar things, like coffee or armchairs. Further, Josefin also noted that physical stores need to make the experience more flexible and easier for the consumer, mentioning apps and other digital tools. But also arguing that stores need to put an increased emphasis on store-layout. All to supply consumers with an experience which they don’t get when traversing an app or website. Marcus shared a similar note, on strengths of the physical store. Also alluding to that stores should focus on what separates them from e-commerce websites.

“...but it is the experience you get, I mean, in the physical store, that’s always going to be there [...] really, the physical items you see, you can touch it, check that it fits correctly, that’s always going to be there. That’s their biggest USP of course, but overall, what should I say? The physical meeting, that’s a big advantage a physical store has, the physical meeting. You can ask question in the moment and get a good humane answer, from a person and perhaps not a FAQ answer, or perhaps an AI-answer which is not really what you’re seeking” - Marcus

What bodes for the future of the physical store, remained divisive among the respondents. Most believe it will remain a key component for fashion retailers. Citing that they wouldn’t want it to disappear. Clara believes visiting stores is an activity rooted in tradition. And thus, won’t disappear. Emilie believes they will die out and be a thing of the past. But she believes they will remain to exist in larger cities, but perhaps not so much in smaller cities such as Örnsköldsvik and Härnösand. Which she thinks stems from a decrease in foot traffic in town centers. Marcus believes physical stores will exist in the future, even though he elaborates it might decrease and not play the same role as in the past. But he describes he holds physical stores close to his heart. Elsa believes physical stores will still exist in the future. Or hopes as much. She cites the clear benefits of the physical stores as her reasons for why. As too many remain fond of the advantages of a physical store, such as touching and feeling the items. But she believes they will decrease in number. Josefin also thinks the physical stores will still remain an important channel in the future.

“No, I don’t think so. I think it will become different, absolutely. Maybe it will become unmanned and so on. I really believe that digitalization will take over physical stores even more. But I don’t think they will disappear because I think that you always… There will always be a large majority who’d want to visit physical stores. That want that feeling, go into a store, buy something, then go home” - Josefin

David also remains confident that physical stores won’t disappear, but says that the more exclusive brands probably will remain present physically. And also adds.

“There’s no physical store which will be as smooth as laying on the sofa and order something by the click of a button” - David

5.2 Managerial perspective

This section will present the managerial perspective, by first giving a brief background presentation of the respondent, followed by the empirical findings. The structure of this section has been based on the structure of the interview guide in order to give an as transparent and truthful presentation of the empirical material as possible.

5.2.1 Presentation of respondent

Renée currently works as the Chief Customer Officer (CCO) for the Swedish fashion retailer Gina Tricot. She’s been employed at this position for two years, prior to this she worked as Gina Tricot´s e-commerce manager for six years. Throughout her employment at Gina Tricot, she has been heavily involved in their omnichannel development, to enhance and connect the customer journey between their various channels. In her current role her focus remains on the customer journey and the customer experience. Where a large portion of her focus is devoted to carrying dialogue with customers and identifying the touchpoints of interest throughout their customer journey, so as to enhance customer experience. Gina Tricot sells to 30 different countries online and has just over 150 physical stores in four different countries. They also sell their products through wholesale parties such as Zalando.se.

5.2.2 Online channels and the physical store

Renée describes that Gina Tricot’s general strategy for their channels is that they should complement each other. She further explains the importance of integrating their various channels together and consequently make the customer journey as seamless as possible for their customers. Renée believes that the majority of Generation Z use their mobile phones to browse through online sites and social media. She elaborates on several key aspects which she believes Generation Z find advantageous about using online sites. Firstly, that they can access the entire assortment of products, get a satisfactory overview of all products and that it’s easy to navigate and find what they want. Also, it's easy to traverse and compare various online sites, but also the convenience of shopping wherever and whenever they want.

“Convenience, i.e. they can shop from the bed, the bus etc., i.e. anywhere and anytime.” - Renée

Moreover, she also specifies what she believes Generation Z likes about the physical store. Exemplifying aspects such as hanging out socially with friends, the physical benefit of being able to touch and feel products, the instant gratification of being able to bring the product home instantaneously, as well as having in-store service personnel available for assistance. Further, she remains confident this generation overall still enjoys visiting physical stores.

Renée says that Gina Tricot mainly devotes themselves to offering traditional physical stores. Because she remains confident that physical stores still fulfill a purpose for the customers and thus finds it important to be present physically. Where customers e.g. can come and be assisted by in-store personnel. When asked how they attract customers to their stores, Renée elaborated that they try to offer as much information as possible on their website, not only where the stores are situated geographically and their opening hours. But also, which products are in stock. All to allow customers to prepare themselves for a purchase in one of their physical stores. Moreover, Renée elaborates that the physical store

still remains the largest revenue contributor for Gina Tricot and thus very important to them. Also, because they then have the opportunity to meet the customers in person, supply them with in-store service and maintain a dialogue with them. The physical store is also important so as to remind the customers about Gina Tricot’s presence and also preserve their strong brand awareness.

Renée highlights the importance of creating a nice feeling and enjoyable atmosphere in the physical store. Further, she explains that they have a great focus on providing good personal customer service, through having the staff in store interacting with the customers. Renée explains that she believes one of the most important factors for Generation Z when visiting a physical store is that they receive a nice treatment by the staff when they enter the store and when the customers finalize their purchase. Additionally, the staff is described to always be available for the customer if they have questions or need help.

“We put a great emphasis on the contact between the staff and customers, it is important that our customers are acknowledged when they enter the store, that they receive help in the fitting rooms and receive a pleasant ending to their visit at the cashier.” - Renée

Renée also describes that she believes Generation Z values being able to easily navigate within the physical store, that the environment feels fresh and clean, as well as inspiring to be in.

5.2.3 Smart technology and use of mobile devices in physical stores

According to Renée, Gina Tricot put a great emphasis on the fact that the customers possess their own technology, in terms of their smartphones that they carry with them everywhere.

“I believe the customers [Generation Z] wants to use their own smartphone in as large extent as possible” - Renée

In order to ease the process of using smartphones during their visit in a physical store, Renée describes that Gina Tricot focuses on optimizing their website to satisfy as many customers’ needs as possible, whilst the customers are in-store. When it comes to smart technologies to make the purchase process more efficient, such as self-scanning, it is not something Gina Tricot currently offers their customers. However, Renée describes that Gina Tricot tracks the development and eventual demand from customers regarding efficient payment solutions, like self-scanning. They make continuous evaluations if and when it potentially would be a good timing to launch it, both considering their own and the customer's perspective.

5.2.4 Integration physical/online channels

Renée thinks Generation Z do not necessarily prefer one type of channel over the other, instead she believes they value a combination of offline and online channels, where the choice of channel depends on what type of purchase they make. E.g. if it’s more a spontaneous or inspirational purchase, compared to a more habitual purchase.

“I believe the most important aspect for this customer segment [Generation Z] is the possibility to switch between different channels during various phases of the customer journey...” - Renée

Gina Tricot currently has a multitude of omnichannel initiatives, such as collect and return in-store, view the stock levels of physical stores online and more. Further, they plan to enhance and offer an even more seamless shopping experience for customers. The biggest challenge in this as of now, according to Renée, is parts of their current system architecture e.g. an older cashier system.

Renée believes many customers use various online channels prior to visiting a physical store. She says that around 80 percent of customers begin their customer journey online, and also create virtual shopping carts online which they later bring to the physical store. Furthermore, she believes that many searches for products in-store which they’ve seen online beforehand. She also notes that some customers tend to inform themselves about certain items online, beneath the product information section, whilst in-store. In their physical stores they communicate and encourage customers to find more sizes, colors and styles online. This is something they’re looking into going forward so as to expand customer options and allow customers to use their own smartphone as a tool.

5.2.5 The future of the physical store

When looking into the future of the physical store Renée raises several potential challenges. She begins by highlighting the issue of defining what role the physical store should have in the future. Will it still work to have a more traditional store or will they perhaps reason to be more of a place for inspiration and give customers an opportunity to meet and experience the brand. Further, she describes the issue of finding a solid balance between digitized self- service solutions and the more traditional personal meeting. Renée alludes to trying to evaluate to what extent customers want to fend for themselves, being self-serving or not. She also poses a question upon how physical stores can create more unique products and experiences. Renée also foresees future challenges concerning the location of the physical stores. City centers are already suffering, and many stores are closing since the city centers do not attract as many people as before. The current pandemic, covid-19, has accelerated this trend even more and if the aftermath of the pandemic implies we will continue working from home to a large extent, this might elongate this problem.

She remains confident that Generation Z will find the traditional store to be a key aspect in their lives, but more for the social aspect it provides.

“I believe that the physical store will be important for that generation and then with focus on the social part, i.e. to connect with others whether it’d be friends you shop with or to feel that you’re part of the brand, because gen Z are ‘communaholics’”

Renée believes that the physical store will remain a place for unique experiences for Generation Z, but remains open to what such experiences might entail.

5.3 Overview empirical findings

In the subsequent table (Table 4) sample characterizations of all respondents can be found. The table provides an overview in which the frequency of how many contributed to different topics or specific content is shown.

Table 4. Summary key findings from respective respondents. Source: Authors

Year of Name birth Consumers characteristics

Elsa is a full-time student in Gothenburg, and also works as an influencer. She has a great Elsa 1998 interest in fashion. She normally purchases fashion items every month. Uses a mix of online and offline channels when seeking inspiration, searching and purchasing clothes. Finds satisfaction through online, but says the physical store provides more of an experience. Frequently conform to webrooming behavior.

Josefin is a full-time employee and lives in Stockholm. She has an avid interest in fashion Josefin 1997 and purchases fashion items frequently. Uses both online and offline channels, but is an avid online shopper. Finds satisfaction through online channels, but loves physical stores, which provides a greater overall experience. Frequently engage in webrooming, but also a mix between showrooming and webrooming.

Emelie is a full-time student in Rotherham, England, but currently resides in Emelie 1996 Örnsköldsvik. Privately she has an interest in fashion, in which she purchases fashion items twice a month. She uses online channels, but prefers physical stores. Says that the physical store provides a better experience. Engages in webrooming.

Clara is a full-time student at Umeå University. She describes herself as having a mild Clara 1996 fashion interest, but a great interest in dressing well. She purchases clothing items twice a month. Uses both online and offline channels, but prefers physical stores. Says that physicality provides much more of an experience and satisfaction. Engages in webrooming, but rarely.

Marcus is a full-time employee, employed as an Audit Associate in Stockholm. He Marcus 1996 considers himself as having a great interest in fashion and dressing well. Uses online and offline channels, but online more frequently. Says that the physical store is a more satisfying experience. Engages in both webrooming and a mix between showrooming and webrooming.

David is self-employed and lives in Umeå. He described himself as having an avid David 1999 interest in fashion. He believes it’s important to dress well and purchases fashion twice a month. An avid user of online channels, but sometimes use physical stores when needed. Feels sufficient satisfaction with online channels. Engages in webrooming.

Name Position Managerial key points

Renée is employed as the Chief Customer Officer of Gina Tricot in Sweden. Among her duties, focus is devoted to the customer journey and experience of Gina Tricot's customers. Further, to identify key touchpoints along the customer journey so as to CCO, enhance the experience. During her time as COO, she's also devoted time and researched Renée Gina digital retail behaviors as a doctoral student. She believes Generation Z to avidly use Tricot online channels, because it's easy to find, see and compare all products. But they also frequently use physical stores to try, touch and feel products. And bring it home straight away. But says Gen Z likes to switch channels. Believes Gen Z will value the experience of physical stores in the future. Says Gen Z are communaholics.

6. Analysis and Discussion In this chapter, analysis and discussion, we will elaborate and connect the empirical findings with the previously presented literature review. The chapter will be structured based upon previous elements presented in the literature review, but also with new themes distinguished in the empirical findings. The first three subchapters of customer experience, customer journey and shopping behavior derive from the literature review, whilst the remaining themes derive from new notable elements present in the empirical findings. The final subchapter of the proposed framework explains the whole process of how Generation Z’s characteristics, attitudes and preferences have altered the role of the physical store.

6.1 Customer Experience

The consumer respondents in this study explain the process of visiting and shopping in physical stores as more of an overall experience, compared to shopping online. Even the two respondents that clearly use online channels, like webshops, more frequently when shopping for fashion items, still describe the visit to a physical store as more of a satisfactory experience, that can’t fully be achieved through online channels. This could be connected to the affective aspect of the customer experience, explained by Bustamante and Rubio (2017) and Gao et al. (2021). According to Gao et al. (2021, p. 14) affective experience refers to entertainment and enjoyment acquired when shopping. Another aspect that can be connected to affective experiences is the fact that all consumer respondents explain the possibility of being able to try, touch and feel products in-store as something they really value. Bustamante and Rubio (2017, p. 890) explain affective experience as the consumers' emotions e.g. toward an object, influenced by different stimuli. Hence, the possibility of touching and trying fashion items in the physical store could be perceived as a sensory stimulus that evokes consumer emotions. This reasoning also aligns with the viewpoint from the managerial respondent, highlighting that core reasons for Generation Z to visit the physical store is the possibility of feeling the products and trying them on immediately.

Two of the respondents also highlighted that they appreciate the design of the physical store, that the navigation is more pleasurable in the physical store environment, compared to online stores, since it gives more of a satisfying overview of different sections within the store, instead of staring at a digital display. This could be connected to physical aspects of the customer experience, which concerns the customers internal psychological response to the servicescape or store environment (Bustamante & Rubio, 2017, p. 892). This indicates that these respondents value the physical environment of the physical store, which potentially enhances their overall customer experience. Even though the personal service in the physical store does not seem to be the most significant attribute of the physical store for the consumer respondents, it is still something the majority of respondents appreciate when they have a need of receiving help. Several respondents have expressed they appreciate being able to talk and directly interact with personnel if they have questions or need help, instead of interacting with a digital display, as in the context of shopping online. According to Bustamante and Rubio (2017, p. 891) the aspect of social experience refers to the value of the established relationship when interacting with other individuals in the environment, e.g. other customers or staff. This can be interpreted as the physical store provides more social experience than online channels, which also the majority of respondents seem to appreciate. Several of the consumer respondents also describe shopping in physical stores as a entertaining and social activity they can do together with friends, which also confirms that the physical store enhances social aspects of the customer experience. The social experience is also highlighted by the managerial respondent, who believe that two of the key factors Generation Z likes to shop in physical stores is the fact that they perceive it as a

social activity they can do with friends as well as the ability to receive help from personnel if needed.

However, a majority of the respondents explain that the most valuable attribute of shopping through online channels is the time-efficiency and that it enables finding information about different alternatives in an easier and smoother way. This can be linked to cognitive experiences, which according to Gao et al. (2021, p. 14) for example relates to functional information about products as well as how efficient the process of acquiring a product is for the consumer. With this in mind, it seems like the physical store might lack the cognitive aspects of consumer experience compared to online channels. The managerial respondent also highlights that she believes Generation Z value shopping through online channels since they receive a satisfactory overview of all products, where it’s easy to navigate and receive extensive information. Further, the managerial respondent explains that this ubiquitous presence of the internet provides a convenience unmatched by physical stores. Where consumers can search and purchase items whilst on the bus or in bed. The “anywhere anytime” aspect offered by online-stores is highly valued among Generation Z consumers.

In summary, when considering customer experience, it is clear that the physical store seems to give the consumers a more extensive customer experience, compared to online channels. Physical stores seem to stimulate affective, physical and social aspects of the customer experience to a larger extent. However, the online channels seem to benefit from stimulating more cognitive aspects of the customer experience, and even though all respondents seem to agree the physical store provides a fuller experience, several respondents more frequently shop through online channels.

6.2 Customer Journey

The empirical findings of this study show that all consumer respondents in some sense use different types of channels and touchpoints, both offline and online, along their customer journey. The respondents explain that their choice of channels can vary depending on the situation and which type of fashion product they are interested in. However, what is clear from the results is that all respondents, to some extent, normally use multiple channels, combining offline and online, when they are shopping for fashion products. Several respondents even explicitly mention that they appreciate the opportunity of being able to combine and switch through various channels, rather than preferring one channel over the other. The managerial respondent also confirms this, by stating that she believes Generation Z values the combination of offline and online channels, switching through different touch points during the shopping process. This can be interpreted as the customer journey has a dynamic character, which aligns with Lynch and Barnes (2020, p. 474) statement that the customer journey has become more complex. Further, Lemon and Verhoef (2016, p. 69) explain that this complexity emerges since the number of touchpoints, both online and offline has increased, which also aligns with our empirical findings. Moreover, Grewal and Roggeveen (2020, p. 4) and Kazancogly and Aydin (2018, p. 960) highlight that the customer journey has become more nonlinear, where consumers seem to switch between different channels during their shopping process. This is clearly confirmed by the consumer respondents of this study, both through their descriptions of how they normally use different channels in different stages of their journey, but also through some respondents explicitly expressing they appreciate being able to combine and switch throughout different channels. The fact that the customer journey is complex, nonlinear and that consumers seem to use both online and offline channels during their shopping process, is also in line with the empirical findings from the managerial respondent. The managerial respondent described that Gina Tricot´s general strategy is to make their channels complementary, combining

offline and online channels so the customers can switch and choose a preferable channel depending on the situation and what purchase they make.

The consumer respondents use multiple channels to source inspiration and find information. Which is found to be both passively and actively gathered. In this phase, the respondents jumped in between various channels to source both inspiration and information. When the consumer respondents had gained preference for a particular item, derived from their inspirational phase, they then sought additional information about said item. Which most dominantly was done through online channels such as websites, social media and apps. This coincides with Lynch and Barnes (2020, p. 480) findings for the initial phases of the customer journey, implying that consumers tend to perform extensive search of information gathering through various channels. Having established a preference, most customer respondents expressed concerns surrounding the sizing and fit of their preferred item. Which for some was more difficult than others, in this case depending on what type of item it was. If they found themselves unsure in this stage, most respondents typically wanted to try an item. Which if they did, they preferably did in a physical store, much like what the findings of Lynch and Barnes (2020, pp. 480-481) entail. Where the findings suggest the physical store is important for high fashion consumers in order to try on and inspect the fit of clothing items.

When it comes to the actual purchase stage, the empirical evidence shows that some of the consumer respondents prefer to perform their purchase in-store, whilst some preferred to perform their purchase online. Further, this was for some of our consumer respondents a critical step. Whether they’d purchase the item then and there, in-store, assuming the item and price to be satisfactory. Or, if not, they continue home and browse the web to see if they could find the product anywhere else at a more forgiving price. This in turn aligns with Lynch and Barnes (2020, p. 481) statement that fashion consumers search online for promotional offerings to not miss out on any better offers. But, as in the case for three of the respondents, some were prone to purchase the item in-store, assuming the price was decent. The promotional offer search was not always done when the customer was ready to purchase the item, as in the case of Lynch and Barnes (2020, p. 481), but was done so at an earlier stage in the customer journey, namely the information search. But what can be confirmed by Lynch and Barnes (2020, p. 480), which our empirical material confirms, is that a majority of the consumer respondents do extensive research if they're on a hunt for a specific item or type of clothing. To a point where they find some sort of saturation; having sourced enough inspiration and information for their needs.

The empirical material from the consumer respondents also indicate that they maintain specific preferences for specific channels. The vast array of websites and consequent assortment supply, as well as digital tools which allow consumers to easily filter through huge amounts of products consequently appears particularly suitable for inspiration and information search. Which coincides with the earlier parts of the customer journey. This in turn also coincides with the empirical material from the managerial perspective. In which it is said that Generation Z emphasizes the value of convenience which online-stores provide. Moreover, the physical stores have associated benefits which the consumer respondents’ value in the evaluation phase of the journey. Where they try, touch and feel products in- store. Which indicated to enhance the satisfaction among the respondents. This also aligns with the empirical material from the managerial perspective, in which it’s established that one of the key reasons why Generation Z visit physical stores is the aforementioned reasons.

The empirical evidence shows that when the consumer respondents performed their purchase through an online-channel, the majority of respondents valued the opportunity to return items in the physical store. Moreover, one respondent elaborated on that she’d like to be able to return items bought in-store, through means associated with online-returns. Meaning, through a mail-service. To conclude, all consumer respondents indicate to uphold various preferences for all channels depending which phase they’re in along their customer journey, which in turn align with Hagberg et al. (2017, p. 267) findings on consumer preferences. In that they perceive each channel to have certain benefits or value and thus use them accordingly.

6.3 Shopping Behavior

The accumulated empirical material which indicates specific shopping behaviors among consumers confirm both the behavior of webrooming, as described by Kim et al. (2018, p. 306), but also that of showrooming, described by von Biel (2020, p. 224). In the case of the consumer respondents, a majority performed pre-purchase information searches online. Later, several respondents visited physical stores where they ultimately purchased the item. Further, few respondents indicated they engaged in showrooming, where they tried items in-store and later purchased them online. However, several respondents indicate that they both engage in product research beforehand, then visit a physical and try it on, alluding to webrooming, but then ultimately purchase the item online afterwards. Which proves to be a combination of both webrooming and showrooming.

Of the two main behaviors, namely webrooming and showrooming, the former is more recurring among the consumer respondents interviewed for this thesis. Only one respondent clearly alluded to such behavior which matches the definition of showrooming, whereas five respondents’ behavior match that of webrooming. Moreover, several of the respondents also alluded to a combination of the two. Behaviors such as these, have shown to be frequent in today's digitized retail-world. Among the two, webrooming has grown to be the more persistent of the two, which agrees with the study by Kim et al. (2018, p. 306). The empirical material suggests it’s close behind webrooming in represented behavior. As for why, it may be an effect brought upon by integrated omnichannel strategies and behaviors. Where the ease of channel traversing results in the aforementioned behavior. But such claims cannot be made. But acknowledging the possibility of new prevalent behavior due to increased customer journey complexity and nonlinearity as mentioned by Grewal and Roggeveen (2020, p. 4) and Kazancogly and Aydin (2018, p. 960) does not seem too far stretched.

6.4 The Physical Store in the eyes of Gen Z

Based on the empirical material, the physical store upholds various purposes for various consumers. But, many of whom are common amongst the respondent consumers. All of the respondents valued the physical store highly, but the frequency of use varied, as some respondents were promoters of online shopping. But, some of the commonalities among all respondents were the sensory advantages of a physical store, confirmed both from the managerial- and consumer respondent(s). The possibility of being able to try, touch and feel the products of interest. This benefit is synonymous with traditional brick-and-mortar stores, and consequently one of the drawbacks with online-stores. This in turn aligns with Hagberg and Jonsson (2016, p. 64) about sensory activation and the consequent difficulties of replicating this online. The physical store offers assurance of purchase. In the sense that it allows for quality assurance and size assurance. Consumers can try out clothes they’re interested in, so as to confirm that the fit is satisfactory. In comparison, online-stores fall short in this regard, as they cannot offer the possibility to actually try them on. Further,

being able to touch and feel an item, yields the ability to assure oneself of the quality of an item. Which is difficult when viewing an item on a screen. Consequently, being able to try an item as well as touch it to see its quality, remained as beneficial aspects which proved to be able to increase confirmation of choice. This aligns with the comments by Wang et al. (2016, p. 404), insinuating a reduction in risk when consumers shop in physical stores. But, what Wang et al. (2016, p. 404) also alluded to, that physical stores present less of an effort to purchase items compared to online, is not strongly supported by our empirical findings. Rather, online is the more effortless of the two, according to the majority of our respondents.

Another benefit which contrasts the online store is the possibility of instant gratification. Being able to go to a store, try an item on, purchase it and then bring it home straight away. This was an aspect which several consumer respondents valued greatly, and also confirmed by the managerial respondent. So was the perception of the in-store service. Although its significance varied among respondents, having personnel available was one of the clear benefits which contrasted the physical store from the online-store according to the respondents. This in turn follows the word of Chiu et al. (2011, p. 275) as well as the managerial perspective given by the managerial respondent. Saying that preference exists for the physical store as it allows for instant pick up, evaluation of products and guidance from personnel for Generation Z consumers. The managerial respondent believes that the physical store still fulfills a purpose for Generation Z consumers, and based on the empirical material from the consumer respondents, this appears true. All consumer respondents’ emphasize the significance of the physical store, and consequently how it remains superior to online stores in providing an overall experience, since it gives them a type of enjoyment that online channels can´t really provide to the same extent. This aligns with the description from Hagberg and Jonsson (2016, p. 65), emphasizing that visiting a physical store is perceived as more of an entertaining activity for consumers.

Turning the gaze into the future, all respondents shared interesting thoughts on what they’d like to see physical stores do more of. In contrasting online and offline, some aspects appear to be the benefits one, namely online, which they’d like to see incorporated into physical stores. One of these aspects relates to the physical stores’ assortment size. One of the clear advantages of online is the broad assortment available to consumers. Also, being able to sift through copious amounts of clothes through the available filter tools. Several respondents thus argued they’d like to see a broader assortment available in-store. Although two respondents pointed out the difficulty in this, as physical stores are limited to a physical space, unlike their online counterpart.

As indicated by Vojdovic (2019, p. 110), Generation Z consumers showed, in 47 percent of the cases, to use their smartphone in relation to their in-store visit. In the case of the Generation Z consumers interviewed in this study, none normally claim to use their phone beyond using it as a payment-method. Further, this was indicated by only one of six respondents. But, several aspects presented by Vojdovic (2019, p. 110) appear to fall in line with our empirical findings. Generation Z consumers would like to see physical stores increase their assortment supply of products, as well as incorporate in-store technology which proves beneficial to their in-store experience in terms of efficiency and thus overall customer experience. Moreover, Vojdovic (2019, p. 110) implies that Generation Z seeks additional focus on customer experience. This has been indicated by our consumer respondents in terms of what they’d like to see improved by physical stores, more so than online. Additionally, the managerial perspective yielded an insight which was not mentioned by the consumers, which is that Generation Z seek unique customer experiences. Although it hasn’t been explicitly said by any consumer respondents, it has been insinuated.

Although most respondents explicitly show interest in making the physical store more efficient, absorbing some of the benefits from the online-store, the reason behind their visit to a physical store is not necessarily for an efficient experience. But, to exploit the benefits of the physical store. Such as the ability to try, touch and feel products, as well as to utilize the in-store service and instant gratification. Furthermore, all respondents value different aspects for each medium. But express that they value a combination of online and offline. Extracting the apparent benefits of each in combination for a bigger gain than the sum of its parts.

An interesting question which was posed to the consumer respondents was if the physical store would draw upon some of the advantages of online-stores, such as becoming more efficient through incorporating certain smart technologies. Would they then choose the physical store over online? Some said yes and some no. In light of the surrounding discussion, it may not necessarily be the best option for the physical store to become more like its online counterpart. If the physical store would attract more consumers for this reason, consumers who would otherwise perform their shopping online, the physical store would perhaps regain some ground lost to e-commerce. But, with the empirical material, from both the consumer- and managerial perspective, it seems like the more appropriate relationship between online and offline is one of complementarity. The physical store will never be as efficient as online, and online will find it difficult to offer the try, touch and feel aspect of physical stores. For consumers, it may thus be more beneficial in the sense of customer- experience and journey to build upon each other's strengths and not try to become a lesser version of the other. But, work in a harmonious symbiosis where the two can offer more together than if they’d try to outcompete each other.

6.5 Personal service in the physical store

From the managerial perspective, personal service is highlighted as one of the believed main reasons why Generation Z visits physical stores. This aligns with the statement by Hagberg and Jonsson (2016, p. 64), claiming that the social interaction with staff is an essential factor of the physical store. However, even though personal service has been described as a key component of the physical store according to the consumer respondents, only one of them mentions personal service as one the most important attributes when shopping in a physical store. Further, when the consumer respondents specifically were asked to explain how they value personal service in the physical stores, several of the respondents initiated their answers by explaining how they do not appreciate when the staff in the store is too proactive in their role as a salesman. In contrast, the empirical material from the managerial perspective, the personal service is believed to play a quintessential part of the customer experience. Although through a seemingly proactive approach. But, based on the consumer respondents, only one of the consumer respondents clearly conform to the managerial perspective in regards to in-store customer service. Whereas the majority insinuate a preference towards less proactive personnel. But, both parties agree that it’s important that service personnel are present and there when needed. Several respondents emphasize that they do appreciate having the opportunity to receive help from the personnel in-store if they have any concerns. This can be interpreted as the consumer respondents appreciate personal service when the consumers themselves take the initiative to receive assistance. However, if the staff plays a too active role, it can have a conflicting effect towards its intended purpose.

6.6 Technology in the physical store

According to Piotrowicz and Cuthbertson (2014, p. 10) smart technologies that are integrated and incorporated in-store are an important aspect to enhance the customer experience. The consumer respondents give a relatively diverse description of their current use and attitudes of smart technologies when shopping in physical stores. Two of the respondents highly value being able to use self-checkouts and prefer that over traditional checkout when it's available. Whilst the other respondents do not normally use self- checkouts. As for some, it's not perceived as something commonly offered by physical retail stores. Further, one respondent explains he prefers more traditional checkouts where it's possible to interact with personnel. One respondent mentions he normally uses technologies in terms of payment and verify memberships through the mobile phone. Despite that, the consumer respondents do not normally use any types of technological advances or their mobile devices when shopping in physical stores. The managerial respondent emphasizes she believes Generation Z wants to use their smartphones as much as possible when shopping in physical stores. Based on our findings from the consumer respondents, the perspective of the managerial respondent does not seem to align with the current behavior of the consumer respondents belonging to Generation Z.

Since the consumer respondents in general do not seem to use smart technology remarkably often, this indicates that the statement by Piotrowicz and Cuthbertson (2014), that smart technology enhances customer experience, does not seem to correspond with the result of our study. Further, it seems like from the managerial perspective, that mobile devices are perceived to be more important for Generation Z, than it actually is. However, when asking the consumer respondents whether smart technologies could be something that could improve their shopping experience, all consumers provided several suggestions of different smart technologies they would appreciate in-store. The most frequently mentioned innovation is some type of technology that can help to navigate in-store, e.g. by being able to search for products online and then receive a map, on an interactive screen or in their smartphone, that helps to locate where these items can be found in-store. Several respondents also wish to receive extensive information, like stock balance or receive suggestions for similar products. These findings align with the study by Priporas et al. (2017, p. 379) highlighting that Generation Z seek improvement of smart information technology that can help them match their desires with suitable offerings, as well as locating the product they are searching for.

As presented by Vojvodic (2019, p. 110) Generation Z is seen as a generation that values in-store technology that enhances easier shopping and adds value to their overall experience, as well as having little patience for deficient technology. With this in mind, together with the fact that the consumer respondents showed positive attitudes towards potential smart technologies, this could be interpreted as there is potential for fashion retailers to implement smart technologies that can make the in-store shopping smoother and more efficient.

6.7 Omnichannel seamlessness

An aspect not under contention, is Generation Z’s usage of both online and offline channels throughout their customer journey, to consequently heighten their customer experience. It’s evident that the respondents uphold distinct preferences for each channel, and how each channel may contribute to their overall purchasing experience. The persistent utilization of online channels in the initial steps of the respondents’ customer journey indicates that they value the digital tools present across various online channels, which proves advantageous when searching for inspiration and information through online channels. As they prove

more efficient than their offline counterparts. Much like what the findings from Inman and Nikolova (2017, p. 23) established, that implies that the overall shopping process is faster and thus more efficient online, compared to offline. Although not every respondent, all but one, favorizes the advantages of online tools available when traversing online-stores. Moreover, the consumers carry over the gathered information from the previous stages into the continuing stage of evaluation. At this stage, this could entail a visit to a physical store or online store, depending on preference and type of purchase. But the information and inspiration which have been collected by the respondents is seemingly expected to be carried over seamlessly. As if it’s one seamless process. This perspective is also confirmed by the managerial perspective which the managerial respondent divulged. Which further solidifies itself when the respondents consequently choose to either visit a store for the apparent benefits of in-store service, try, touch and feel possibilities and more. Or, if less confusion surrounds their purchase, respondents may perform their evaluation online, as well as the actual purchase. The managerial respondent disclosed that Generation Z seemingly prove to prefer the ability to switch between channels, and not hold a strong preference for either, but choose to use the channel which best suits them at each stage of their customer journey.

Moreover, in terms of delivery and returns. Respondents show inclination towards being able to not only return items in-store, which they’d purchased online. But also, to be able to return items purchased in-store in more of an online fashion. Meaning to mail them back much like you typically do when returning online-purchases. This close-knitted relationship between online- and offline stores requires an integrated omnichannel strategy. And based on the empirical evidence from the respondents, it may provide significant value and enhance customer experience. Through increased integration between online and offline channels. This ability, to switch between channels in the later stages of the customer journey, shows to hold significant value among some of the consumer respondents.

An issue which was presented in the literature review, was the phenomenon of cross- channel free-riding, established by Chiu et al. (2011, p. 275). The empirical material suggests that some of the respondents conform to this behavior. Which connects back to the aforementioned aspect of channel preference. Some consumer respondents traverse various channels, but channels from the same retailer. But, some choose to make use of not only various channels, but channels from other retailers. This is seemingly particularly true when the respondents search for information. Where they traverse various online channels as well as retailers in search of what they’re looking for.

When observing channel preference along the customer journey for the respondents, it’s obvious that very few conform to one single channel throughout their journey. Instead, they switch between them, and do so depending on what channel best suits them for each subsequent step. And each consumer maintains various constellations of channel usage throughout their customer journey depending on a number of factors, such as type purchase. An interesting note which was shared by the managerial respondent, is that Generation Z is seemingly communaholics. A behavior which signifies a tendency among consumers where they subsequently become part of a community based on shared interests and values. This may include an inclination to become or feel part of a sustainable clothing brand based on the company values, or perhaps be a part of a group which shares the value and interest of recycling. The managerial respondent establishes that the social aspect is highly valued among Generation Z consumers, whether it’d be shopping with friends or connecting with the brand as mentioned. This is also argued by the managerial respondent as a significant reason as for why physical stores will remain important to Generation Z consumers in the future. But, also a tendency which bears similarities described by Šramková and Sirotiaková

(2021, p. 8), in which consumers show interest in purchasing products which may influence their stance in or connection to a social group.

6.8 Proposed Framework

The final subchapter of the analysis and discussion, proposed framework, illustrates how Generation Z’s characteristics, preferences and attitudes have ultimately altered the role of the physical store in an omnichannel strategy, and the value the physical store holds for Generation Z consumers (see figure 4). The figure below is inspired by the layout of the previously presented Figure 3. which served as a synthesis of the literature framework chapter. Partly because of the figure’s familiarity, which fills a purpose in showcasing the evolution towards Figure 4.

The initial part of the framework alludes to the fact that although the physical store is one among many channels in an omnichannel strategy, it’s still the main distribution channel, responsible for a large majority of sales. Onwards, is what is confined within an omnichannel context. Digitalization has influenced, and still influences change, as it’s a term which refers to continuous change. Thus, the ongoing influence by digitalization has formed the characteristics of Generation Z. Generation Z is the first true digital native generation, as they grew up in a digital world. Consequently, it has affected their shopping characteristics. They expect efficiency and experiences as well as to connect with each other and be able to identify themselves with groups of similar thinking people. These characteristics in turn have influenced a set of preferences and attitudes towards shopping, or more specifically their customer journey, customer experience and shopping behavior in today’s retail environment. These three areas have also been found to have an interconnected relationship, as they influence each other. As many fashion retailers use an omnichannel strategy, they offer several channels of interaction for consumers. As there’s multiple channels on offer, consumers' customer journeys have become more complex and no longer linear, as they are able to traverse across various channels along their journey. Their channel of choice for each stage of the customer journey is dependent on what type of product and purchase it is. For each stage of the journey, Generation Z uses the channel which best satisfies their needs for that part of the journey. But as we’ve seen, the physical store plays a significant role in the evaluation phase of the journey.

Consumers’ customer journeys also influence their customer experience, and the other way around. As mentioned, they use the most appropriate channel, for them, for each stage. The channel of choice in turn stimulates a certain amount of senses, or rather a set of affective-, social-, physical- and cognitive aspects. As for the physical store, it appears to have a superior ability to stimulate the affective-, social- and physical aspects. Which for Generation Z makes the physical store a superior overall experience. The online channel appears to better stimulate the cognitive aspect as it allows them to source inspiration, information and compare products easier. The customer journey, as well as customer experience, influence Generation Z’s shopping behavior. With the ease of channel traversing along their customer journey and desire for overall experience, certain behaviors have become apparent. Namely, webrooming, more so than showrooming. But also, a mix between the two.

These three distinct aspects connected to the omnichannel retail environment, has in turn seen the physical store take a role of increased complementarity. Instead of being a channel where consumers' entire customer journey is contained within. It is still the main distribution channel as previously mentioned. But, in the context of omnichannel strategy, consumers use its apparent benefits when it best suits them. As they have a multitude of channels

available to them, it’s not about each channel in isolation, but what all channels as an entity can offer them. The physical store offers a superior overall experience, where consumers can try, touch and feel products, an aspect not offered online. Consumers find it essential when evaluating products as it increases confirmation of choice. Further, physical stores should aim to include and balance smart technologies, efficiency and personal service in order to better conform to the expectations and desires of Generation Z.

Figure 4. Revised proposed framework. Source: Authors

7. Concluding remarks & Implications We will in this final chapter answer our research question and the purpose of this study, by means of accentuating the most notable discoveries and conclusions. Beyond this, the managerial- and societal implications for this thesis will be underlined. As well as concluding with this thesis’ limitations and suggestions for future research.

Research Question What is the role of physical fashion stores within omnichannel strategy, in regard to Generation Z?

Purpose The purpose of this study is twofold. Firstly, this study aims to examine and expand the knowledge about Generation Z’s preferences and attitudes towards the physical store and the value it holds for Generation Z consumers within an omnichannel context. Additionally, the study aims to identify challenges and opportunities for fashion retailers in integrating physical stores into an omnichannel strategy, in regard to Generation Z.

7.1 Key findings and theoretical contributions

In phase with digitalization, the fashion retail industry has been reshaped. The increased competition from e-commerce has challenged the traditional role of the physical store. Further, both researchers and practitioners have put a great focus on omnichannel strategies that aim to integrate both online and offline channels seamlessness. Generation Z is a generation that has been born in a digitalized society and also a relatively unexplored segment, and therefore relevant to examine their attitudes and preferences of the physical store in regard to other channels. Consequently, our study has contributed with a deeper understanding of the role of the physical store within an omnichannel strategy, in regard to Generation Z. Which further has enabled us to identify potential opportunities and challenges for fashion retailers integrating physical stores into an omnichannel strategy in a way that attracts Generation Z. This knowledge in combination with previous research within the area has provided a holistic approach of the role of the physical store for Generation Z within omnichannel strategy, which further have contributed to the conclusions of this study.

The findings and result of this study suggest that the physical store will have a role of increased complementarity, but will remain a distinct channel in the foreseeable future. Generation Z values unique experiences and the ability to try, touch and feel products, abilities which cannot be equally satisfied through online channels. For them, the physical store provides and stimulates more senses to provide an overall better customer experience and enjoyment. Elements of the physical store will remain significant during earlier phases of the customer journey, particularly in the evaluation stage. As consumers find the physical store to provide a superior opportunity to evaluate the product, size, fit and quality. This in turn makes consumers more convinced and satisfied with their choice of product. From this thesis, fashion retailers will better understand Generation Z consumers, and ultimately, the value and role physical stores play for Generation Z consumers in an omnichannel context. These areas of interest will be discussed further in relation to previous literature.

7.1.1 Increasingly complementarity role of the physical store

This study has identified that the physical store seems to play an increased complementary role for Generation Z, in relation and combination to other channels. This has also been confirmed by the empirical findings of the managerial perspective. Further, our study has shown that Generation Z to a large extent value being able to combine the physical store with other online channels and do not really prefer one channel over the other. Generation Z seem to switch through various channels throughout their customer journey and use the channels they believe is the most beneficial for the specific purpose, and that the use of various channels brings them the most value. This aligns with the arguments by Picot- Coupey et al. (2016, p. 25), meaning that it is essential to consider the benefits of each channel so they can build upon each other's strengths. E.g. through the ability to try and feel in the physical store in combination with the ability to find information 24/7 on online channels. This argument is also supported by the increasing shopping behaviors of webrooming and showrooming, explained by Kim et al. (2018, p. 306) and von Biel (2020, p. 224). But also, our study’s findings, indicating Generation Z engages in a combination of showrooming and webrooming. This type of shopping behavior, switching and combining online and offline channels, throughout the shopping process, also indicates physical store and online channels are complementary to each other. With this in mind, the conclusion can be made that our study shows that physical stores have an increasingly complementary role for the respondents of this study, belonging to Generation Z. Where the physical stores, in relation to other online channels can provide unique benefits to Generation Z, in combination with the unique benefits other online channels provide.

7.1.2 Evaluation - Try, touch and feel

Our study has shown that one of the key functions that our respondents seem to appreciate concerning the physical store, is the ability to evaluate fashion items in real life. This confirms the findings by Wang et al. (2016, p. 404), stating that one key characteristic of the physical store is the ability to immediately evaluate the product quality. All respondents in this study clearly emphasize they appreciate being able to touch and try fashion items in store, before they make their actual purchase. Which aligns with the statement by Hagberg and Jonssons (2016, p. 64), highlighting how the ability to see and touch products enhances the opportunity to provide a unique customer experience. This is also in line with the managerial perspective from the empirical findings, which have shown that the ability to try, touch and feel products is considered as one of the most important attributes that they believe Generation Z values. Consequently, a conclusion can be made that the physical store plays an important role for our Generation Z respondents when evaluating fashion items before they make their purchase, since it enables immediate confirmation of the product quality and whether they like it or not by touching, feeling and trying the items.

7.1.3 Efficiency

Along the evolution of digital retailing, consumers have gained an increased appetite for efficiency. An efficiency offered by e-commerce through a multitude of filter tools, ease of navigation and comparison capabilities. Our study suggests that the Generation Z consumers respondents value efficiency when shopping, but not only when shopping online. In accordance with Gao et al. (2021, p. 14), Generation Z notably mentions efficiency as one of the key reasons behind why they shop online. But, the cognitive experience and expectations of online channels is seemingly desired in physical stores as well. Although a

majority of the respondents praise the physical store as a superior overall experience, there’s a desire for increased efficiency so as to enhance their overall experience. For them, efficiency is important. Some respondents seemingly expect, or want, some of the efficient elements found online, to be present in physical stores. An instrument in this, is introducing technologies in-store, which allow for more efficient navigation in-store. Being able to locate items quickly through technological tools, become notified on special offers and so on. But, in doing this, the physical store would inevitably become more like its online counterpart. Beside this point, respondents agree that physical stores better satisfy them in terms of overall experience, through physical stores ability to offer superior affective-, social- and physical experience as described by Bustamante and Rubio (2017, p. 886) and Verhoef et al. (2009, p. 32). Although physical stores may never become as efficient as online stores, introducing technological tools which increase efficiency and thus enhance Generation Z’s customer experience when visiting stores. But losing focus on what makes the physical store unique, by the means of stimulating affective-, social- and physical experience, at the cost of increased efficiency, may affect Generation Z’s in-store experience negatively.

In conclusion, our study show that Generation Z seem to desire a more efficient in-store experience, through various tools otherwise akin to them through online channels, whilst not sacrificing the elements of the physical store which inherently makes it unique. Thus, a balance between the two appears the most suitable in order to enhance the in-store customer experience of Generation Z consumers.

7.1.4 Personal service versus technological self-service in store

The managerial perspective offered in the empirical chapter, suggested that Generation Z’s in-store experience is highly related to in-store service. Previous research also implicates that personal service in-store, where the staff interacts directly with the customers is an important factor of the physical store (Hagberg & Jonsson, 2016, p. 64). Our findings suggest that whilst the Generation Z consumers respondents value the availability of in- store personnel, it’s not paramount for their in-store experience. Instead, Generation Z is seemingly interested in self-service, although not all. But, a majority of the respondents prefers to do more themselves, than less. In relation to the aforementioned part of efficiency and technology, self-service appears interrelated. With assistance from technology, the respondents want to navigate on their own, on their own terms. And a majority desire the in-store service personnel to be there when needed and not in a proactive role which is the more customary approach. Thus, finding a balance between the role of in-store service personnel and allowing room for Generation Z customers to self-serve themselves, is seemingly the more appropriate approach to enhance their in-store customer experience. Based on this, the conclusion can be made that Generation Z seem to appreciate self-service and other technologies in-store that can enhance customer experience, simultaneously as they highly value being able to interact with personnel in-store when needed, but only if the personnel maintain a more passive role.

7.1.5 Challenges and opportunities

When it comes to challenges and opportunities concerning the role of the physical store within omnichannel strategy, this study has identified some key areas that will be highlighted below. These areas derive from the previous conclusions presented previously in this chapter.

Firstly, a potential opportunity for fashion retailers based on the findings from this study is to improve the aspects that the Generation Z respondents really values with the physical store. The study has shown that Generation Z value the full experience they believe only physical stores can provide, that includes the ability to see, touch and try the items, helping them to evaluate products in a satisfactory way. Further, a potential opportunity is also to increase the interaction and cross-channel function between offline and online channels. In the context of omnichannel strategies, one key aspect is to integrate online and offline channels to a more seamless experience (Verhoef et al., 2015, p. 175; Savastano et al., 2019, p. 476). As already highlighted, the Generation Z appreciate being able to switch and combine different channels and by integrating offline and online channels even more. This study has shown that Generation Z currently does not tend to use their mobile devices in- store, connected to their shopping. However, our findings indicate Generation Z would appreciate smart technology that can make their purchase smoother and satisfying in-store. For example, by having functions that can locate items in-store, which they have found previously through online channels. Hagberg and Jonsson (2016, p. 62) emphasize that the use of digital tools in-store can enhance the customer experience. By integrating and connecting the online channels with the physical store, this leads to the opportunity to enhance the overall customer experience even more.

Further, we have found a potential opportunity for fashion retailers to increase the efficiency of the physical store. This study has found that Generation Z highly values efficiency when shopping for fashion items, where this has been described as the key benefits of online channels that physical stores do not provide to the same extent. Improving efficiency in- store could be done by various technological advances, e.g. like self-checkout points or interactive screens that can provide extensive information or help to navigate in-store. According to Piotrowicz and Cuthbertson (2014, p. 10) the incorporation of technology in physical stores is important for enhancing customer experience. As previously highlighted, the physical store seems to stimulate affective-, physical- and social experiences to a larger extent compared to online channels. However, online channels hold the benefit of stimulating more cognitive experiences. By implementing technology in-store that can stimulate more cognitive experiences, which Gao et al. (2021, p. 14) explain concerns efficiency of acquiring products as well as functional information about products, this could contribute to increasing the overall customer experience in-store even more. Nevertheless, by striving for making the physical store more efficient, this could also lead to potential challenges. This study has shown that generation Z appreciates the combination of both offline and online channels. Where they base their choice of channel depending on what unique benefits a specific channel offers them. By focusing on making the physical more efficient, and by this also more similar to online channels, this might cause a situation where customers no longer see the benefit of combining different channels through the shopping process, since the channels are too similar. Additionally, by focusing too much on making the physical store more efficient, this might be at expense of other important attributes that Generation Z values about the physical store.

Furthermore, a potential challenge for fashion retailers that have been identified based on the findings of this study is the issue of balancing personal service and self-service in the physical store. According to Hagberg and Jonsson (2016, p. 64) the personal service that physical stores can provide is an essential dimension of the physical store, allowing customers to interact and communicate with personnel directly in person. This study has shown that Generation Z appreciate being able receive help from staff when they have the need, and being able to obtain direct answers. Simultaneously, this study shows that Generation Z appreciate efficiency, and indicates that they appreciate self-service functions

that can make their shopping in-store more efficient. Finding the right balance between self- service and personal service might therefore become a potential challenge for fashion retailers targeting Generation Z.

Finally, the findings from this study have shown that the Generation Z respondents seem to perceive the limited assortment in physical stores as a crucial disadvantage, in comparison to online channels. Simultaneously, as mentioned by consumer respondents, the assortment capacity of physical stores for natural reasons will probably never compete with online stores. Which can be considered as a challenge for fashion retailers. However, when looking at this issue, in relation to the fact that Generation Z seems to value the physical store in the evaluation phase, there is a potential opportunity for fashion retailers to find alternative solutions to this. In attempting to increase evaluation opportunities for consumers whilst acknowledging the limited assortment supply.

7.2 Managerial Implications

The managerial implications of this thesis allude to the practical contributions and consequently how these may be applied in professional practice. As this thesis grounds itself in the consumer perspective, managers may thus see value in further understanding of Generation Z perceptions, preferences and behavior. But also, as the managerial perspective provided an additional perspective, managers may find contributing value in seeing a retailer's conformity to their perceptions of Generation Z and how Generation Z’s own preferences may differentiate themselves from that of a retailer.

The study’s empirical material and subsequent analysis and discussion has presented several opportunities and possible challenges which may present themselves to managers in the clothing retail industry. Managers may consider introducing various technologies to their store to consequently draw upon some of the benefits from their online counterpart. However, this study suggests a balance between the two to be more appropriate. Generation Z appears to hold the benefits of physical stores in high regard but at the same time desire an element of increased efficiency to their in-store visits. Their affection for the try, touch and feel aspects of physical stores remains a clear advantage for retailers. Thus, managers should evaluate what their own segments may desire, and possibly introduce some technological tools in-store, but not to the point where they homologize themselves too much to the online store. Where the physical store becomes a physical manifestation of online-stores. Generation Z also emphasizes a desire to increase the focus on in-store experience, but that experience is highly related to existing elements which differentiate the physical store from that of online-stores. Managers should thus yield additional focus towards elements which makes them unique, and sets them apart from online-stores, but also lend efforts towards alleviating elements which Generation Z finds exhausting with the physical store. Such as making it more efficient and possible for consumers through online means to find where certain items can be found in-store, so they don’t have to browse an entire store in order to find what they’re looking for.

The study’s findings also lend a hand for managers in identifying the value of in-store service as seen by Generation Z consumers. The findings suggest that in-store personnel should, instead of emphasizing too much of a proactive approach to in-store service, engage customers in more of a laid-back role. Generation Z values self-service, where too much of a proactive approach from in-store personnel may prove detrimental to Generation Z’s in- store experience. This in turn links back to in-store technology, where Generation Z desires an increased element of efficiency to their in-store visit, where they e.g. can search and find

items themselves. Thus, retailers should improve Generation Z possibilities to engage in self-service.

Another element which may prove challenging for managers is the conceptual behavior of communaholics. Although this behavior wasn’t observed nor meant to be observed by the consumer respondents, the managerial perspective seemingly shone a light on this as a distinctive behavior among Generation Z consumers. As consumers not only visit physical stores in search of stimulating the social experience, but perhaps also because of a particular identification with a brand image, managers should therefore yield additional focus on identifying Generation Z’s perceptions of their brand image. Increasing the understanding of the communaholic behavior of Generation Z consumers may prove beneficial for managers as this behavior may constitute more influence over overall behavior than observed in this study.

Additionally, managers should, in line with our findings, increase available assortment in- store where possible. As Generation Z desires a broader supply of products in-store. This, of course, is limited to the available space among other reasons. But according to our findings, Generation Z finds the ability to evaluate products in-store essential. Thus, balancing the depth and width of the assortment supply to consequently enhance evaluation possibilities in-store.

7.3 Societal Implications

This thesis' possible societal implications may not only influence managers' decisions surrounding the role of the physical store in retail, but also how to draw the most value from the physical store in an omnichannel context to better conform to the desires and expectations of Generation Z consumers.

Improved understanding of Generation Z consumers, in the eyes of managers, may improve resource allocation. The current resources may consequently find themselves more effective in another applied constellation. As the understanding of Generation Z increases, so does managers' understanding of where to place resources in order to best satisfy this segment. Which may help reduce unnecessary waste, decrease energy consumption and optimize related production. This increase of understanding Generation Z’s preferences may also prove to have a positive effect on sales. And as the fashion industry is one of the largest environmental culprits, the environmental footprint of fashion retailers may increase. Because an overconsumption of fashion products will affect the environment negatively. But, retailers may also use this expanded understanding of Generation Z to target them with sustainable alternatives, and consequently lower their environmental impact.

Moreover, as channel integration increases, so may consumer data collection. All consumer companies, not only fashion retailers, rely on a certain amount of consumer data to better target and market consumers. If customer journeys increase in complexity, so may the need for additional data collection. Along the increase of big data collection, the analogous privacy concern has also increased. In striving towards better targeting consumers, retailers may find themselves on the wrong side of marketing ethics.

7.4 Limitations and Future Research

This thesis has, as many other studies, been confined to certain limitations to allow for a feasible study. Therefore, obvious limitations exist which could be improved. As this thesis has been performed during a limited timeframe, the findings and results may thus not offer

a sufficient depth of the researched area and therefore affect the applicability of the results. But the results may still function as the framework for future research. The following parts of this section will expand upon further limitations as well as suggestions for future research. In which the gaps of this study could be filled and improved.

As this study focused on the fashion retail industry, the results may not be applicable to other industries. But, certain elements which remain comparable to other industries may be found as inspiration for retailers outside the fashion industry. Further, the transferability within the fashion industry may also be limited, as not all retailers offer the same type of products or prices, which consequently may constitute behaviors not observed in this study.

Also, although we studied Generation Z, the respondents we interviewed only represented a slice of the span of ages present within this generation. This limited span of ages, as well as number of respondents, is due to the limited timeframe designated for this thesis. To expand the knowledge attributed in this study, future researchers should therefore include a larger span of ages within Generation Z, as well as number of respondents, to increase applicability. Most of the aforementioned limitations are recognizably familiar to qualitative research and will thus to an extent inhibit generalizability of the results. As such restrictions are common for studies of this type, it does present future researchers with favorable room to apply other research designs within the same topic of research.

As previously mentioned, this thesis focused on the retail fashion industry. But also, only one section of it. As not one brand is alike in products or price. Future researchers may focus on comparing Generation Z’s behavior, preferences and perceptions when interacting with retailers who offer more expensive products than the company present in this thesis, and those who do the opposite. To evaluate whether the physical store is valued differently depending factors such price, product and brand.

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Appendices

Appendix 1. Interview guide - consumers Theme Questions

Intro How old are you? What do you do for a living? Could you describe your interest in fashion? How often do you shop for fashion products? How often do you search for inspiration/information about fashion products?

Channels Can you describe the process of the last time you bought a fashion item? (Which channel did you use? - From acknowledging you want to buy something, until you actually bought it, and if anything happened after the purchase?) • Is this a normal procedure for you when you buy fashion items or does it normally look different?

Which channels do you normally use for searching inspiration/information and purchasing clothes or fashion products?

Which channel do you prefer the most? • Why? Which channel do you use most frequently?

Do you prefer some channels in some situations, and other channels in other situations?

Physical store Why do you visit a physical store? (Information search/inspiration, purchase, returns? “entertainment”) What characteristics do you value the most of a physical store? (That an online store can´t provide?) • Why are these characteristics important to you?

Is it something you wish physical stores could offer you, that physical stores currently do not offer?

Is it something online channels offer that physical stores currently do not offer you? • If yes, what? Why is that important?

What perceived value does the physical service have to you in terms of shopping experience when shopping in a physical store? Smart technologies in Do you use smart technologies in store while you shop and which ones physical stores particularly? (for example, self-cash desks, informative touch points, interactive displays equipped with touch screens, digital signage) • If yes, why? If no, why not? Any particular ideas that would make it easier for you to interact with smart applications in store?

Integration of physical Before visiting a physical store, do you ever use other online channels before store and other online you visit? channels • If yes, for what purpose? • And is it normally channels provided from the same or different retailer?

When visiting a physical store, do you ever use mobile devices during your visit? • If yes, for what purpose?

Future of physical When considering the evolution of retail, in terms of digitalization, what do store you foresee as important aspects for the physical store to be able to compete with online retailing?

Do you think physical stores will “die out” in the future?

Summary Do you have anything else you want to add in regard to what we talked about?

Do you have something else we haven't talked about that you would like to add?

Appendix 2. Interview guide - manager Theme Questions

Intro What is your position within the company? For how long have you worked at this position? Could you describe what your role in general entails? What are your primary tasks/what's your responsibility?

Channels Which channels are you currently offering you customers?

What is your general strategy for these channels?

How do you company work in order to integrate these channels?

Which channels do you think gen z use for searching inspiration/information and purchasing clothes or fashion products?

Which channel do you think gen z prefers the most? • Why?

Physical store What type of physical offline channels do you offer your customers, such as traditional brick-and-mortar, pop-up stores and so on?

With the ever-present digitalization within retail in mind, why do you choose to have physical stores and open up new conceptual stores today?

Whilst having an online store, how do you work with attracting customers to the physical store?

How do you work with enhancing the customer experience in-store? How do you create a memorable/unique experience?

Why do you think gen z visits your physical store?

What characteristics of the physical store do you think gen z values? And why do you think this is important?

Smart technologies in In your physical stores, do you offer any digital instruments? (e.g, self-cash physical stores desks, informative touch points, interactive displays equipped with touch screens, digital signage, and applications for mobile phones). • If yes, what? and why?

Do you think gen z uses smart technologies in store while you shop and which ones particularly? • If yes, why? If no, why not?

Integration of physical In relation to your current structure and strategy, what role does the physical store and other online store have in relation to your online store? channels Are your physical stores and online stores currently integrated? If yes, how? If no, why not?

What benefits do the online and offline stores hold against each other?

What would you say are the biggest perceivable challenges in integrating physical stores with online channels?

Do you think gen z uses any smart-devices (e.g. smartphones) while shopping in the physical store? • What do you think is the purpose for using it? • Do you have any strategies for encouraging customers to use smart devices while in store?

Future of physical store What challenges do you experience currently and foresee in the future for physical retail stores?

How do you think the integration of online and offline stores will evolve in the future for fashion retail?

How do you think gen z perceive the role of the physical store in the future?

Summary Do you have anything else you want to add in regard to the topic?

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