IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v302y2022i3p799-818.html
   My bibliography  Save this article

The revival of retail stores via omnichannel operations: A literature review and research framework

Author

Listed:
  • Hübner, Alexander
  • Hense, Jonas
  • Dethlefs, Christian

Abstract

The increasing importance of integrated fulfillment concepts revitalizes bricks-and-mortar stores and puts them at the center of retail operations. So-called omnichannel (OC) concepts leverage stores to offer seamless and enhanced operations for offline and online shoppers. Stores are used to fulfill online orders, offer shorter lead times to customers, and extend the assortment across channels. The role of the store and the underlying store operations are thus impacted by profound changes. This transformation has not yet been assessed comprehensively from a practical or an Operations Research (OR) lens.

Suggested Citation

  • Hübner, Alexander & Hense, Jonas & Dethlefs, Christian, 2022. "The revival of retail stores via omnichannel operations: A literature review and research framework," European Journal of Operational Research, Elsevier, vol. 302(3), pages 799-818.
  • Handle: RePEc:eee:ejores:v:302:y:2022:i:3:p:799-818
    DOI: 10.1016/j.ejor.2021.12.021
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221721010614
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ejor.2021.12.021?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Schneeweiss, Christoph, 2003. "Distributed decision making in supply chain management," International Journal of Production Economics, Elsevier, vol. 84(1), pages 71-83, April.
    2. Santiago Gallino & Antonio Moreno, 2014. "Integration of Online and Offline Channels in Retail: The Impact of Sharing Reliable Inventory Availability Information," Management Science, INFORMS, vol. 60(6), pages 1434-1451, June.
    3. Cai, Ya-Jun & Lo, Chris K.Y., 2020. "Omni-channel management in the new retailing era: A systematic review and future research agenda," International Journal of Production Economics, Elsevier, vol. 229(C).
    4. Aksen, Deniz & Altinkemer, Kemal, 2008. "A location-routing problem for the conversion to the "click-and-mortar" retailing: The static case," European Journal of Operational Research, Elsevier, vol. 186(2), pages 554-575, April.
    5. Yongbo Xiao & Frank Y. Chen & Jian Chen, 2009. "Optimal inventory and dynamic admission policies for a retailer of seasonal products with affiliate programs and drop‐shipping," Naval Research Logistics (NRL), John Wiley & Sons, vol. 56(4), pages 300-317, June.
    6. Verhoef, Peter C. & Kannan, P.K. & Inman, J. Jeffrey, 2015. "From Multi-Channel Retailing to Omni-Channel Retailing," Journal of Retailing, Elsevier, vol. 91(2), pages 174-181.
    7. Paul, Joydeep & Agatz, Niels & Spliet, Remy & Koster, René De, 2019. "Shared Capacity Routing Problem − An omni-channel retail study," European Journal of Operational Research, Elsevier, vol. 273(2), pages 731-739.
    8. Jayashankar M. Swaminathan & Sridhar R. Tayur, 2003. "Models for Supply Chains in E-Business," Management Science, INFORMS, vol. 49(10), pages 1387-1406, October.
    9. Janjevic, Milena & Merchán, Daniel & Winkenbach, Matthias, 2021. "Designing multi-tier, multi-service-level, and multi-modal last-mile distribution networks for omni-channel operations," European Journal of Operational Research, Elsevier, vol. 294(3), pages 1059-1077.
    10. Ishfaq, Rafay & Bajwa, Naeem, 2019. "Profitability of online order fulfillment in multi-channel retailing," European Journal of Operational Research, Elsevier, vol. 272(3), pages 1028-1040.
    11. Fei Gao & Xuanming Su, 2017. "Online and Offline Information for Omnichannel Retailing," Manufacturing & Service Operations Management, INFORMS, vol. 19(1), pages 84-98, February.
    12. Hauser, Matthias & Flath, Christoph M. & Thiesse, Frédéric, 2021. "Catch me if you scan: Data-driven prescriptive modeling for smart store environments," European Journal of Operational Research, Elsevier, vol. 294(3), pages 860-873.
    13. Erik Brynjolfsson & Yu (Jeffrey) Hu & Mohammad S. Rahman, 2009. "Battle of the Retail Channels: How Product Selection and Geography Drive Cross-Channel Competition," Management Science, INFORMS, vol. 55(11), pages 1755-1765, November.
    14. Atalay , Selin & Onur Bodur , H. & Rasolofoarison , Dina, 2012. "Shining in the Center: Central Gaze Cascade Effect on Product Choice," HEC Research Papers Series 978, HEC Paris.
    15. Park, Jisoo & Dayarian, Iman & Montreuil, Benoit, 2021. "Showcasing optimization in omnichannel retailing," European Journal of Operational Research, Elsevier, vol. 294(3), pages 895-905.
    16. Arslan, Ayşe N. & Klibi, Walid & Montreuil, Benoit, 2021. "Distribution network deployment for omnichannel retailing," European Journal of Operational Research, Elsevier, vol. 294(3), pages 1042-1058.
    17. Mahar, Stephen & Bretthauer, Kurt M. & Venkataramanan, M.A., 2009. "The value of virtual pooling in dual sales channel supply chains," European Journal of Operational Research, Elsevier, vol. 192(2), pages 561-575, January.
    18. Zhang, Juzhi & Xu, Qingyun & He, Yi, 2018. "Omnichannel retail operations with consumer returns and order cancellation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 308-324.
    19. Eisend, Martin, 2014. "Shelf space elasticity: A meta-analysis," Journal of Retailing, Elsevier, vol. 90(2), pages 168-181.
    20. Mandal, Prasenjit & Basu, Preetam & Saha, Kushal, 2021. "Forays into omnichannel: An online retailer’s strategies for managing product returns," European Journal of Operational Research, Elsevier, vol. 292(2), pages 633-651.
    21. Abdulkader, M.M.S. & Gajpal, Yuvraj & ElMekkawy, Tarek Y., 2018. "Vehicle routing problem in omni-channel retailing distribution systems," International Journal of Production Economics, Elsevier, vol. 196(C), pages 43-55.
    22. Joseph Geunes & Yiqiang Su, 2020. "Single-period assortment and stock-level decisions for dual sales channels with capacity limits and uncertain demand," International Journal of Production Research, Taylor & Francis Journals, vol. 58(18), pages 5579-5600, September.
    23. Fei Gao & Xuanming Su, 2017. "Omnichannel Retail Operations with Buy-Online-and-Pick-up-in-Store," Management Science, INFORMS, vol. 63(8), pages 2478-2492, August.
    24. Shi, Xiutian & Dong, Ciwei & Cheng, T.C.E., 2018. "Does the buy-online-and-pick-up-in-store strategy with pre-orders benefit a retailer with the consideration of returns?," International Journal of Production Economics, Elsevier, vol. 206(C), pages 134-145.
    25. Li, Gang & Zhang, Tao & Tayi, Giri Kumar, 2020. "Inroad into omni-channel retailing: Physical showroom deployment of an online retailer," European Journal of Operational Research, Elsevier, vol. 283(2), pages 676-691.
    26. Xu, Haoxuan & Gong, Yeming (Yale) & Chu, Chengbin & Zhang, Jinlong, 2017. "Dynamic lot-sizing models for retailers with online channels," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 171-184.
    27. Schneeweiss, Christoph, 2003. "Distributed decision making--a unified approach," European Journal of Operational Research, Elsevier, vol. 150(2), pages 237-252, October.
    28. Haoxuan Xu & Yeming Gong & Chengbin Chu & Jinlong Zhang, 2017. "Dynamic Lot-Sizing Models for Retailers with Online Channels," Post-Print hal-02311919, HAL.
    29. Daria Dzyabura & Srikanth Jagabathula, 2018. "Offline Assortment Optimization in the Presence of an Online Channel," Management Science, INFORMS, vol. 64(6), pages 2767-2786, June.
    30. Bendoly, Elliot & Blocher, Doug & Bretthauer, Kurt M. & Venkataramanan, M.A., 2007. "Service and cost benefits through clicks-and-mortar integration: Implications for the centralization/decentralization debate," European Journal of Operational Research, Elsevier, vol. 180(1), pages 426-442, July.
    31. Shao, Xiaofeng, 2021. "Omnichannel retail move in a dual-channel supply chain," European Journal of Operational Research, Elsevier, vol. 294(3), pages 936-950.
    32. Bayram, Armagan & Cesaret, Bahriye, 2021. "Order fulfillment policies for ship-from-store implementation in omni-channel retailing," European Journal of Operational Research, Elsevier, vol. 294(3), pages 987-1002.
    33. Alexander Hübner & Andreas Holzapfel & Heinrich Kuhn, 2016. "Distribution systems in omni-channel retailing," Business Research, Springer;German Academic Association for Business Research, vol. 9(2), pages 255-296, August.
    34. Hansen, Pierre & Heinsbroek, Hans, 1979. "Product selection and space allocation in supermarkets," European Journal of Operational Research, Elsevier, vol. 3(6), pages 474-484, November.
    35. John M. Andrews & Vivek F. Farias & Aryan I. Khojandi & Chad M. Yan, 2019. "Primal–Dual Algorithms for Order Fulfillment at Urban Outfitters, Inc," Interfaces, INFORMS, vol. 49(5), pages 355-370, September.
    36. Radhi, Mohannad & Zhang, Guoqing, 2019. "Optimal cross-channel return policy in dual-channel retailing systems," International Journal of Production Economics, Elsevier, vol. 210(C), pages 184-198.
    37. Alptekinoglu, Aydin & Tang, Christopher S., 2005. "A model for analyzing multi-channel distribution systems," European Journal of Operational Research, Elsevier, vol. 163(3), pages 802-824, June.
    38. Selin Atalay & H. Onur Bodur & Dina Rasolofoarison, 2012. "Shining in the Center: Central Gaze Cascade Effect on Product Choice," Post-Print hal-00758534, HAL.
    39. Shouyu Ma & Zied Jemai & Evren Sahin & Yves Dallery, 2017. "The news-vendor problem with drop-shipping and resalable returns," Post-Print hal-01672383, HAL.
    40. Jian Chen & Youhua Chen & Mahmut Parlar & Yongbo Xiao, 2011. "Optimal inventory and admission policies for drop-shipping retailers serving in-store and online customers," IISE Transactions, Taylor & Francis Journals, vol. 43(5), pages 332-347.
    41. Schaal, Kai & Hübner, Alexander, 2018. "When does cross-space elasticity matter in shelf-space planning? A decision analytics approach," Omega, Elsevier, vol. 80(C), pages 135-152.
    42. Agatz, Niels A.H. & Fleischmann, Moritz & van Nunen, Jo A.E.E., 2008. "E-fulfillment and multi-channel distribution - A review," European Journal of Operational Research, Elsevier, vol. 187(2), pages 339-356, June.
    43. Santiago Gallino & Antonio Moreno & Ioannis Stamatopoulos, 2017. "Channel Integration, Sales Dispersion, and Inventory Management," Management Science, INFORMS, vol. 63(9), pages 2813-2831, September.
    44. Difrancesco, Rita Maria & van Schilt, Isabelle M. & Winkenbach, Matthias, 2021. "Optimal in-store fulfillment policies for online orders in an omni-channel retail environment," European Journal of Operational Research, Elsevier, vol. 293(3), pages 1058-1076.
    45. Yi He & Qingyun Xu & Pengkun Wu, 2020. "Omnichannel retail operations with refurbished consumer returns," International Journal of Production Research, Taylor & Francis Journals, vol. 58(1), pages 271-290, January.
    46. Rong Li, 2020. "Reinvent Retail Supply Chain: Ship‐from‐Store‐to‐Store," Production and Operations Management, Production and Operations Management Society, vol. 29(8), pages 1825-1836, August.
    47. Felipe Caro & A. Gürhan Kök & Victor Martínez-de-Albéniz, 2020. "The Future of Retail Operations," Manufacturing & Service Operations Management, INFORMS, vol. 22(1), pages 47-58, January.
    48. Boysen, Nils & de Koster, René & Füßler, David, 2021. "The forgotten sons: Warehousing systems for brick-and-mortar retail chains," European Journal of Operational Research, Elsevier, vol. 288(2), pages 361-381.
    49. Shouyu Ma & Zied Jemai & Evren Sahin & Yves Dallery, 2017. "The news-vendor problem with drop-shipping and resalable returns," International Journal of Production Research, Taylor & Francis Journals, vol. 55(22), pages 6547-6571, November.
    50. T. Prabhuram & M. Rajmohan & Youchao Tan & R. Robert Johnson, 2020. "Performance evaluation of Omni channel distribution network configurations using multi criteria decision making techniques," Annals of Operations Research, Springer, vol. 288(1), pages 435-456, May.
    51. Cao, James & So, Kut C. & Yin, Shuya, 2016. "Impact of an “online-to-store” channel on demand allocation, pricing and profitability," European Journal of Operational Research, Elsevier, vol. 248(1), pages 234-245.
    52. Mou, Shandong & Robb, David J. & DeHoratius, Nicole, 2018. "Retail store operations: Literature review and research directions," European Journal of Operational Research, Elsevier, vol. 265(2), pages 399-422.
    53. A. Selin Atalay & H. Onur Bodur & Dina Rasolofoarison, 2012. "Shining in the Center: Central Gaze Cascade Effect on Product Choice," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 39(4), pages 848-866.
    54. Bijmolt, Tammo H.A. & Broekhuis, Manda & de Leeuw, Sander & Hirche, Christian & Rooderkerk, Robert P. & Sousa, Rui & Zhu, Stuart X., 2021. "Challenges at the marketing–operations interface in omni-channel retail environments," Journal of Business Research, Elsevier, vol. 122(C), pages 864-874.
    55. Holzapfel, Andreas & Hübner, Alexander & Kuhn, Heinrich & Sternbeck, Michael G., 2016. "Delivery pattern and transportation planning in grocery retailing," European Journal of Operational Research, Elsevier, vol. 252(1), pages 54-68.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Haibo & Alidaee, Bahram, 2023. "White-glove service delivery: A quantitative analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    2. David Winkelmann & Frederik Tolkmitt & Matthias Ulrich & Michael Romer, 2022. "Integrated storage assignment for an e-grocery fulfilment centre: Accounting for day-of-week demand patterns," Papers 2209.03998, arXiv.org, revised May 2023.
    3. Shandong Mou, 2022. "Integrated Order Picking and Multi-Skilled Picker Scheduling in Omni-Channel Retail Stores," Mathematics, MDPI, vol. 10(9), pages 1-19, April.
    4. Goedhart, Joost & Haijema, René & Akkerman, Renzo, 2023. "Modelling the influence of returns for an omni-channel retailer," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1248-1263.
    5. Schäfer, Fabian & Hense, Jonas & Hübner, Alexander, 2023. "An analytical assessment of demand effects in omni-channel assortment planning," Omega, Elsevier, vol. 115(C).
    6. Yue Liu & Guang Song, 2023. "Role of Logistics Integration Capability in Enhancing Performance in Omni-Channel Retailing: Supply Chain Integration as Mediator," Sustainability, MDPI, vol. 15(11), pages 1-22, June.
    7. Goedhart, Joost & Haijema, René & Akkerman, Renzo & de Leeuw, Sander, 2023. "Replenishment and fulfilment decisions for stores in an omni-channel retail network," European Journal of Operational Research, Elsevier, vol. 311(3), pages 1009-1022.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cai, Ya-Jun & Lo, Chris K.Y., 2020. "Omni-channel management in the new retailing era: A systematic review and future research agenda," International Journal of Production Economics, Elsevier, vol. 229(C).
    2. Jiu, Song, 2022. "Robust omnichannel retail operations with the implementation of ship-from-store," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 157(C).
    3. Hense, Jonas & Hübner, Alexander, 2022. "Assortment optimization in omni-channel retailing," European Journal of Operational Research, Elsevier, vol. 301(1), pages 124-140.
    4. Schäfer, Fabian & Hense, Jonas & Hübner, Alexander, 2023. "An analytical assessment of demand effects in omni-channel assortment planning," Omega, Elsevier, vol. 115(C).
    5. Millstein, Mitchell A. & Bilir, Canser & Campbell, James F., 2022. "The effect of optimizing warehouse locations on omnichannel designs," European Journal of Operational Research, Elsevier, vol. 301(2), pages 576-590.
    6. Kong, Ruixiao & Luo, Li & Chen, Liuxin & Keblis, Matthew F., 2020. "The effects of BOPS implementation under different pricing strategies in omnichannel retailing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(C).
    7. Wang, Ronghui & Nan, Guofang & Kou, Gang & Li, Minqiang, 2023. "Separation or integration: The game between retailers with online and offline channels," European Journal of Operational Research, Elsevier, vol. 307(3), pages 1348-1359.
    8. Yang, Lu & Li, Xiangyong & Zhong, Ning, 2022. "Omnichannel retail operations with mixed fulfillment strategies," International Journal of Production Economics, Elsevier, vol. 254(C).
    9. Goedhart, Joost & Haijema, René & Akkerman, Renzo & de Leeuw, Sander, 2023. "Replenishment and fulfilment decisions for stores in an omni-channel retail network," European Journal of Operational Research, Elsevier, vol. 311(3), pages 1009-1022.
    10. Li, Qi & Wang, Quansheng & Song, Peijian, 2022. "Do customers always adopt buy-online-and-pick-up-in-store service? Consideration of location-based store density in omni-channel retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    11. Li, Zonghuo & Guan, Xu & Mei, Wanxia, 2023. "Coupon promotion and its cross-channel effect in omnichannel retailing industry: A time-sensitive strategy," International Journal of Production Economics, Elsevier, vol. 258(C).
    12. Jena, Sarat Kumar & Meena, Purushottam, 2022. "Shopping in the omnichannel supply chain under price competition and product return," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    13. Snoeck, André & Winkenbach, Matthias & Fransoo, Jan C., 2023. "On-demand last-mile distribution network design with omnichannel inventory," Other publications TiSEM 83b06c9f-2a65-4aaf-880b-2, Tilburg University, School of Economics and Management.
    14. Gupta, Vishal Kumar & Ting, Q.U. & Tiwari, Manoj Kumar, 2019. "Multi-period price optimization problem for omnichannel retailers accounting for customer heterogeneity," International Journal of Production Economics, Elsevier, vol. 212(C), pages 155-167.
    15. Jin, Delong & Caliskan-Demirag, Ozgun & Chen, Frank (Youhua) & Huang, Min, 2020. "Omnichannel retailers’ return policy strategies in the presence of competition," International Journal of Production Economics, Elsevier, vol. 225(C).
    16. He, Yi & Xu, Qingyun & Shao, Zhen, 2021. "“Ship-from-store” strategy in platform retailing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    17. Saha, Kushal & Bhattacharya, Subir, 2021. "‘Buy online and pick up in-store’: Implications for the store inventory," European Journal of Operational Research, Elsevier, vol. 294(3), pages 906-921.
    18. MacCarthy, Bart L. & Zhang, Lina & Muyldermans, Luc, 2019. "Best Performance Frontiers for Buy-Online-Pickup-in-Store order fulfilment," International Journal of Production Economics, Elsevier, vol. 211(C), pages 251-264.
    19. Goedhart, Joost & Haijema, René & Akkerman, Renzo, 2023. "Modelling the influence of returns for an omni-channel retailer," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1248-1263.
    20. Zhou, Yong-Wu & Zhang, Xiong & Zhong, Yuanguang & Cao, Bin & Cheng, T.C. Edwin, 2021. "Dynamic pricing and cross-channel fulfillment for omnichannel retailing industry: An approximation policy and implications," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 156(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:302:y:2022:i:3:p:799-818. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.