Retailer adoption of the Internet – Implications for retail marketing

TLDR

Most commentary on the Internet’s impact on retail marketing is anecdotal and speculative, and there is little academic research to confirm or refute claims of widespread retailer adoption. The study aims to provide a comprehensive, rigorous review of UK retailers’ Internet activities to balance anecdotal claims. The authors sampled 1,099 UK retail chains, inspected each website, and categorized the marketing functions and services offered. Most surveyed retailers lack a website, and those that have one use it mainly for communication rather than direct sales, suggesting limited current Internet activity in retail marketing.

Abstract

To date, most of the commentary on the impact of the Internet on retail marketing has been anecdotal, offering exaggerated speculative forecasts of its future potential. One view contends that the Internet will become a major new retail format, replacing the traditional dominance of fixed location stores. However, little academic research exists to either disprove or support the claims of Internet penetration by retailers. Seeks to redress the balance by presenting a comprehensive and rigorous review of UK retailer Internet activities. A sampling frame of 1,099 UK retail multiples was used, and each Web site individually inspected to categorise the range of marketing functions and services offered. The findings indicated that, despite the hype, the majority of retail organisations surveyed have not yet registered a Web site address. Moreover, of those retail organisations that have developed a Web site, the vast majority are using it primarily as a communication tool to promote corporate or product information to Internet users, rather than to support direct sales. In conclusion, summarises the implications of these current levels of Internet activity for the future of retail marketing.