Opening 'Off-Price' Stores Can Increase Online Shopping for High-End Retailers

Opening 'off-price' stores can increase online shopping for high-end retailers

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.

Study: Opening ‘Off-Price’ Stores Increases Online Shopping for High-End Retailers

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.