Impact of Temporary Store Closures on Online Sales: Evidence from a Natural Experiment

Published Online:https://doi.org/10.1287/msom.2022.0527

References

  • Abadie A, Athey S, Imbens GW, Wooldridge JM (2023) When should you adjust standard errors for clustering? Quart. J. Econom. 138(1):1–35.CrossrefGoogle Scholar
  • Access Development (2016) The impact of retail proximity on consumer purchases. Retrieved August 23, 2022, https://cdn2.hubspot.net/hubfs/263750/Access_Consumer_Spend_Study_2016.pdf.Google Scholar
  • Akturk MS, Ketzenberg M (2022) Impact of competitor store closures on a major retailer. Production Oper. Management 31(2):715–730.CrossrefGoogle Scholar
  • Alekseev G, Amer S, Gopal M, Kuchler T, Schneider JW, Stroebel J, Wernerfelt N (2023) The effects of COVID-19 on U.S. small businesses: Evidence from owners, managers, and employees. Management Sci. 69(1):7–24.Google Scholar
  • Ansari A, Mela CF, Neslin SA (2008) Customer channel migration. J. Marketing Res. 45(1):60–75.CrossrefGoogle Scholar
  • Bartik AW, Bertrand M, Cullen Z, Glaeser EL, Luca M, Stanton C (2020) The impact of COVID-19 on small business outcomes and expectations. Proc. Natl. Acad. Sci. USA 117(30):17656–17666.CrossrefGoogle Scholar
  • Bell DR, Gallino S, Moreno A (2014) How to win in an omnichannel world. MIT Sloan Management Rev. 56(1):45–53.Google Scholar
  • Bell DR, Gallino S, Moreno A (2020) Customer supercharging in experience-centric channels. Management Sci. 66(9):4096–4107.LinkGoogle Scholar
  • Bendoly E, Blocher D, Bretthauer KM, Venkataramanan M (2007) Service and cost benefits through clicks-and-mortar integration: Implications for the centralization/decentralization debate. Eur. J. Oper. Res. 180(1):426–442.CrossrefGoogle Scholar
  • Bizjak JM, Kalpathy SL, Mihov VT, Ren J (2022) CEO political leanings and store-level economic activity during the COVID-19 crisis: Effects on shareholder value and public health. J. Finance 77(5):2949–2986.CrossrefGoogle Scholar
  • Bloom DE, Kuhn M, Prettner K (2022) Modern infectious diseases: Macroeconomic impacts and policy responses. J. Econom. Literature 60(1):85–131.CrossrefGoogle Scholar
  • Bonaccorsi G, Pierri F, Cinelli M, Flori A, Galeazzi A, Porcelli F, Schmidt AL, et al. (2020) Economic and social consequences of human mobility restrictions under COVID-19. Proc. Natl. Acad. Sci. USA 117(27):15530–15535.CrossrefGoogle Scholar
  • Brito C, Pearl J (2002) Generalized instrumental variables. Darwiche A, Friedman N, eds. Proc. Eighteenth Conf. Uncertainty Artificial Intelligence (Morgan Kaufmann Publishers Inc., San Francisco), 85–93.Google Scholar
  • Carvalho VM, Garcia JR, Hansen S, Ortiz Á, Rodrigo T, Rodríguez Mora JV, Ruiz P (2021) Tracking the COVID-19 crisis with high-resolution transaction data. Roy. Soc. Open Sci. 8(8):210218.CrossrefGoogle Scholar
  • Cattani K, Gilland W, Heese HS, Swaminathan J (2006) Boiling frogs: Pricing strategies for a manufacturer adding a direct channel that competes with the traditional channel. Production Oper. Management 15(1):40–56.CrossrefGoogle Scholar
  • Chen J, Vullikanti A, Santos J, Venkatramanan S, Hoops S, Mortveit H, Lewis B, et al. (2021) Epidemiological and economic impact of COVID-19 in the US. Sci. Rep. 11(1):20451.CrossrefGoogle Scholar
  • Chen KY, Kaya M, Özer Ö (2008) Dual sales channel management with service competition. Manufacturing Service Oper. Management 10(4):654–675.LinkGoogle Scholar
  • Crocker KJ, Letizia P (2014) Optimal policies for recovering the value of consumer returns. Production Oper. Management 23(10):1667–1680.CrossrefGoogle Scholar
  • Dong E, Du H, Gardner L (2020) An interactive web-based dashboard to track COVID-19 in real time. Lancet Infectious Diseases 20(5):533–534.CrossrefGoogle Scholar
  • Ertekin N, Gümüş M, Nikoofal ME (2022) Online-exclusive or hybrid? Channel merchandising strategies for ship-to-store implementation. Management Sci. 68(8):5828–5846.LinkGoogle Scholar
  • Gallino S, Moreno A (2014) Integration of online and offline channels in retail: The impact of sharing reliable inventory availability information. Management Sci. 60(6):1434–1451.LinkGoogle Scholar
  • Gallino S, Moreno A, Stamatopoulos I (2017) Channel integration, sales dispersion, and inventory management. Management Sci. 63(9):2813–2831.LinkGoogle Scholar
  • Gao F, Su X (2017) Omnichannel retail operations with buy-online-and-pick-up-in-store. Management Sci. 63(8):2478–2492.LinkGoogle Scholar
  • Glaeser CK, Fisher M, Su X (2019) Optimal retail location: Empirical methodology and application to practice: Finalist–2017 M&SOM practice-based research competition. Manufacturing Service Oper. Management 21(1):86–102.LinkGoogle Scholar
  • Guler AU (2018) Inferring the economics of store density from closures: The Starbucks case. Marketing Sci. 37(4):611–630.LinkGoogle Scholar
  • Gupta A, Su BC, Walter Z (2004) An empirical study of consumer switching from traditional to electronic channels: A purchase-decision process perspective. Internat. J. Electronic Commerce 8(3):131–161.CrossrefGoogle Scholar
  • Gupta S, Starr MK, Farahani RZ, Asgari N (2022) OM forum—Pandemics/epidemics: Challenges and opportunities for operations management research. Manufacturing Service Oper. Management 24(1):1–23.LinkGoogle Scholar
  • Haans H, Gijsbrechts E (2010) Sales drops from closing shops: Assessing the impact of store outlet closures on retail chain revenue. J. Marketing Res. 47(6):1025–1040.CrossrefGoogle Scholar
  • Hale T, Angrist N, Goldszmidt R, Kira B, Petherick A, Phillips T, Webster S, et al. (2021) A global panel database of pandemic policies (Oxford COVID-19 Government Response Tracker). Nature Human Behav. 5(4):529–538.CrossrefGoogle Scholar
  • Han BR, Sun T, Chu LY, Wu L (2022) COVID-19 and e-commerce operations: Evidence from Alibaba. Manufacturing Service Oper. Management 24(3):1388–1405.LinkGoogle Scholar
  • Hsiao L, Chen YJ (2014) Strategic motive for introducing internet channels in a supply chain. Production Oper. Management 23(1):36–47.CrossrefGoogle Scholar
  • Hwang EH, Nageswaran L, Cho SH (2020) Impact of COVID-19 on omnichannel retail: Drivers of online sales during pandemic. Preprint, submitted July 25, http://dx.doi.org/10.2139/ssrn.3657827.Google Scholar
  • Konuş U, Neslin SA, Verhoef PC (2014) The effect of search channel elimination on purchase incidence, order size and channel choice. Internat. J. Res. Marketing 31(1):49–64.CrossrefGoogle Scholar
  • Kumar A, Mehra A, Kumar S (2019) Why do stores drive online sales? Evidence of underlying mechanisms from a multichannel retailer. Inform. Systems Res. 30(1):319–338.LinkGoogle Scholar
  • Kumar N, Ruan R (2006) On manufacturers complementing the traditional retail channel with a direct online channel. Quant. Marketing Econom. 4(3):289–323.CrossrefGoogle Scholar
  • Letizia P, Pourakbar M, Harrison T (2018) The impact of consumer returns on the multichannel sales strategies of manufacturers. Production Oper. Management 27(2):323–349.CrossrefGoogle Scholar
  • Li S, Lu LX, Lu SF, Huang S (2023) Estimating the stockout-based demand spillover effect in a fashion retail setting. Manufacturing Service Oper. Management 25(2):468–488.LinkGoogle Scholar
  • Luo L, Sun J (2016) New product design under channel acceptance: Brick-and-mortar, online-exclusive, or brick-and-click. Production Oper. Management 25(12):2014–2034.CrossrefGoogle Scholar
  • Luo X, Zhang Y, Zeng F, Qu Z (2020) Complementarity and cannibalization of offline-to-online targeting: A field experiment on omnichannel commerce. MIS Quart. 44(2):957–982.CrossrefGoogle Scholar
  • Misra K, Singh V, Zhang QP (2022) Frontiers: Impact of stay-at-home-orders and cost-of-living on stimulus response: Evidence from the CARES Act. Marketing Sci. 41(2):211–229.LinkGoogle Scholar
  • Nault BR, Rahman MS (2019) Proximity to a traditional physical store: The effects of mitigating online disutility costs. Production Oper. Management 28(4):1033–1051.CrossrefGoogle Scholar
  • Ofek E, Katona Z, Sarvary M (2011) “Bricks and clicks”: The impact of product returns on the strategies of multichannel retailers. Marketing Sci. 30(1):42–60.LinkGoogle Scholar
  • Pauwels K, Neslin SA (2015) Building with bricks and mortar: The revenue impact of opening physical stores in a multichannel environment. J. Retailing 91(2):182–197.CrossrefGoogle Scholar
  • Samuelson W, Zeckhauser R (1988) Status quo bias in decision making. J. Risk Uncertainty 1(1):7–59.CrossrefGoogle Scholar
  • Sheth J (2020) Impact of Covid-19 on consumer behavior: Will the old habits return or die? J. Bus. Res. 117(January):280–283.CrossrefGoogle Scholar
  • Shriver SK, Bollinger B (2022) Demand expansion and cannibalization effects from retail store entry: A structural analysis of multichannel demand. Management Sci. 68(12):8829–8856.LinkGoogle Scholar
  • Soysal G, Zentner A, Zheng Z (2019) Physical stores in the digital age: How store closures affect consumer churn. Production Oper. Management 28(11):2778–2791.CrossrefGoogle Scholar
  • Stock J, Yogo M (2005) Testing for Weak Instruments in Linear IV Regression (Cambridge University Press, New York), 80–108.Google Scholar
  • Tang Q, Lin M, Kim Y (2021) Inter-retailer channel competition: Empirical analyses of store entry effects on online purchases. Production Oper. Management 30(8):2547–2563.CrossrefGoogle Scholar
  • Thomas L (2021) More retail pain ahead: UBS predicts 80,000 stores will close in the U.S. by 2026. CNBC (April 5), https://www.cnbc.com/2021/04/05/store-closures-ubs-predicts-80000-stores-will-go-dark-by-2026.html.Google Scholar
  • Timoumi A, Gangwar M, Mantrala MK (2022) Cross-channel effects of omnichannel retail marketing strategies: A review of extant data-driven research. J. Retailing 98(1):133–151.CrossrefGoogle Scholar
  • Verhoef PC, Kannan PK, Inman JJ (2015) From multi-channel retailing to omni-channel retailing. Introduction to the special issue on multi-channel retailing. J. Retailing 91(2):174–181.CrossrefGoogle Scholar
  • Wang G (2022) Using mobile device data to understand the effect of stay-at-home orders on residents’ mobility. Manufacturing Service Oper. Management 24(6):2882–2900.LinkGoogle Scholar
  • Wang K, Goldfarb A (2017) Can offline stores drive online sales? J. Marketing Res. 54(5):706–719.CrossrefGoogle Scholar
  • Wilson R, Din A (2018) Understanding and enhancing the us department of housing and urban development’s zip code crosswalk files. Cityscape 20(2):277–294.Google Scholar
  • Yu K, Cadeaux J, Luo BN (2015) Operational flexibility: Review and meta-analysis. Internat. J. Production Econom. 169:190–202.CrossrefGoogle Scholar
  • Zentner A, Smith M, Kaya C (2013) How video rental patterns change as consumers move online. Management Sci. 59(11):2622–2634.LinkGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.