A new study finds that when high-end retailers open “off-price” stores, which sell less expensive merchandise, it reduces customer spending at their flagship “full-line” stores—but increases customer spending at their online stores. The paper, “The Effects of Off-Price Store Opening on the Incumbent Channels of a Multichannel Retailer: Full-Line Stores Versus Online Store,” is published in the Journal of Marketing Research.
Opening ‘off-price’ stores can increase online shopping for high-end retailers
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