Mash It Up!

Exploring the Phenomenon of Retail Mash-Up and the Survival of the

Physical Retail Place in a Digitalised World

by

Elin Johansson

Frida Öjerbrant

May 2018

Master’s Programme in International Marketing and Brand Management

Supervisor: Jens Hultman

Examiner: Ulf Elg
Abstract
Forces such as globalisation, digitalisation and changes in consumer behaviour have led to a
discussion among practitioners as well as scholars whether the physical retail place will stay
relevant or even exist in the future. One way for brick-and-mortar retailers to stay competitive
is to adopt new and innovative business models and formats, alongside a focus on the
customer experience and how to optimise the physical place to stimulate feelings in a way
which cannot be achieved online. One phenomenon which is fairly new and unexplored is the
retail mash-up where several retail components are combined to offer a mix of products and
services in the same place. The main purpose of this thesis was twofold. Firstly, due to the
novelty of the retail mash-up phenomenon, we aimed to theoretically frame the concept and
encourage further research in the field. Secondly, we aimed to provide a comprehensive
understanding of the phenomenon by exploring the vitality of an engaging customer
experience in order for the physical retail landscape to survive. To achieve the stated purpose,
three research questions were formulated, which focus on the role of a retail mash-up as a
means of contributing to the survival of the physical retail place, how to create a superior
customer experience through a retail mash-up and the main challenges for a mash-up retailer.

As a first step towards fulfilling the purpose and answer the research questions, a literature
review was developed by studying relevant retail literature which can be related to a mash-
up format. Further, an explorative and descriptive approach is adopted which was found to
be most suitable for the aim and nature of the study. The chosen research strategy is a
qualitative case study of how a retail mash-up and its operations is managed by constructing
an offering consisting of multiple parts. The unit of analysis is the Stockholm based retailer
Urban Deli which combines several parts in one concept. The empirical material was collected
through a multi-method approach consisting of interviews with Urban Deli employees as well
as observations of the physical atmosphere and marketing communication material.

The analysis of the empirical material was conducted by connecting empirical material to the
literature review, but also includes a more abstract discussion where no literature was suitable
due to the novelty of the research area. Based on our research, we can conclude that the retail
mash-up has a greater potential to meet desires of customer engagement than traditional
retailers due to the combination of offerings which leads to the possibility to inspire, educate
and influence consumers. Further, we conclude that the retail mash-up, if managed correctly,
has the potential to contribute to the survival of the physical retail place.

Keywords: Retail Mash-up, Retail Format, Customer Experience, Multi-/Omnichannel,

Innovation, Physical Store Atmosphere, Marketing Communication

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Acknowledgements
As we have now reached the conclusive stage of our research and thesis writing, we would
like to thank everyone who have made the realisation of this thesis possible. Firstly, we want
to express our greatest gratitude to our interviewees from Urban Deli who took their valuable
time to meet us and share their opinions and experiences with great engagement. Secondly,
we would like to thank our supervisor Jens Hultman who has supported and challenged us in
order to reach our full potential throughout this process. We are grateful for his commitment
and guidance which have encouraged us during this time. Thirdly, we would like to show our
appreciation for our opponents and seminar group which have been an inspiration through
helpful and interesting discussions. Finally, a special thank you to our families and friends
which constant support has helped us during this period.

Lund, 28 May 2018

_________________________ _________________________

Elin Johansson Frida Öjerbrant

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Table of Contents
1 Introduction ...................................................................................................................1
1.1 Background .............................................................................................................1
1.2 Problematisation.....................................................................................................3
1.3 Purpose and Research Questions ............................................................................6
1.4 Aimed Contributions ...............................................................................................6
1.5 Thesis Outline .........................................................................................................7
2 Literature Review ...........................................................................................................8
2.1 Retail and Innovation ..............................................................................................8
2.1.1 Innovative Retail Business Models...................................................................9
2.1.2 Alternative Retail Formats .............................................................................10
2.2 The Physical Store .................................................................................................11
2.2.1 The Store Atmosphere ..................................................................................13
2.3 Customer Experience ............................................................................................16
2.3.1 The Creation of a Successful Experience ........................................................17
2.3.2 The Importance of Entertainment .................................................................18
2.4 Multi- / Omnichannel Strategies ...........................................................................19
2.5 Retail Marketing Communication ..........................................................................21
2.5.1 Social Media and Influencer Marketing .........................................................22
2.6 Conceptual Framework .........................................................................................24
3 Methodology................................................................................................................25
3.1 Research Design ....................................................................................................25
3.1.1 Research Purpose ..........................................................................................25
3.1.2 Research Philosophy .....................................................................................26
3.1.3 Research Approach .......................................................................................26
3.1.4 Research Strategy..........................................................................................27
3.2 Collection of Empirical Material ............................................................................28
3.2.1 Primary Empirical Material ............................................................................29
3.2.2 Secondary Empirical Material ........................................................................31
3.2.3 Operationalisation.........................................................................................31
3.2.4 Selection of Interviewees ..............................................................................33
3.3 Analysis of Empirical Material ...............................................................................34
3.4 Quality of Research ...............................................................................................36

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 3.5 Ethical Considerations ...........................................................................................38
4 Empirical Material ........................................................................................................39
4.1 Introduction of Urban Deli ....................................................................................39
4.2 Interviews with Urban Deli Employees ..................................................................40
4.2.1 Managing a Retail Mash-Up...........................................................................40
4.2.2 The Superior Customer Experience................................................................45
4.2.3 Technology, Multichannel and Marketing Communication ............................48
4.2.4 Managerial Challenges ..................................................................................53
4.2.5 Retail Innovation and Future .........................................................................58
4.3 Observation of Store Atmosphere .........................................................................60
4.3.1 Grocery Store and Delicacy Store ..................................................................61
4.3.2 Hotel .............................................................................................................62
4.3.3 Restaurant and Bar ........................................................................................62
4.4 Observation of Marketing Communication Material .............................................63
4.4.1 Webpages .....................................................................................................64
4.4.2 Facebook .......................................................................................................65
4.4.3 Instagram ......................................................................................................67
5 Analysis of Empirical Material ......................................................................................69
5.1 Managing a Retail Mash-Up ..................................................................................69
5.1.1 Mash-Up as a Retail Format ..........................................................................69
5.1.2 The Atmosphere at The Physical Place...........................................................71
5.2 The Superior Customer Experience .......................................................................72
5.2.1 Retail Mash-Up as a Meeting Place................................................................73
5.2.2 Store Atmosphere and Assortment ...............................................................74
5.2.3 Relationship Programme and Events .............................................................75
5.3 Technology, Multichannel and Marketing Communication ...................................76
5.3.1 E-commerce and Multichannel Strategies .....................................................77
5.3.2 Marketing Communication ............................................................................78
5.4 Managerial Challenges ..........................................................................................80
5.4.1 Coordination and Risk of Confusion ...............................................................80
5.4.2 Implementation of Technological Solutions ...................................................82
5.4.3 Adaptation of Offering and Customer Experience..........................................83
5.4.4 Constant Development..................................................................................83
5.5 Retail Innovation and Future .................................................................................84

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6 Conclusion....................................................................................................................86
6.1 Conclusions of Conducted Study ...........................................................................86
6.2 Theoretical Implications ........................................................................................88
6.3 Practical Implications ............................................................................................90
6.4 Limitations ............................................................................................................91
6.5 Recommendations for Future Research ................................................................91
References ...........................................................................................................................93
Appendix A: English Interview Guide ................................................................................. 104
Appendix B: Swedish Interview Guide ............................................................................... 107
Appendix C: English Follow-Up Interview Guide ................................................................ 110
Appendix D: Swedish Follow-Up Interview Guide ............................................................. 111
Appendix E: Table of Analysis ............................................................................................ 112
Appendix F: Pictures of Store Atmosphere ........................................................................ 115
Appendix G: Pictures of Marketing Communication Material ........................................... 119

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List of Tables
Table 1: Operationalisation ..................................................................................................32
Table 2: Interviewees ...........................................................................................................34
Table 3: Table of Analysis ................................................................................................... 112

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List of Figures
Figure 1: Thesis Outline ..........................................................................................................7
Figure 2: Conceptual Framework ..........................................................................................24

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1 Introduction

The introduction provides a background of the chosen area of research in order to make the
reader familiar with the topic in preparation for upcoming chapters. Subsequently, the
problematisation is presented which depicts current discussions regarding the retail sector and
the importance of our study. Lastly, we will present the purpose and research questions, aimed
contributions as well as the outline of this thesis.

1.1 Background

There is no doubt that digitalisation has significantly disrupted our world, both in regard to
private consumption and business (World Economic Forum, 2016). In the retail sector, an
abundance of online companies has entered the market within the last 20 years which
therefore has developed into challenges for retailers with a more traditional approach (Ernst
& Young, 2011). Consequently, the traditional retail landscape has become increasingly
combined with the online retail landscape (Wenig, 2014). Devin Wenig (2014), president of
eBay Marketplaces, even argues that all retailers need to develop an omnichannel strategy
and that it is not successful to be neither a pure online nor offline retailer to survive in the
current retail landscape. He further says that consumption “is as much about entertainment
and engagement as it is about utility” and hence, both channels are needed (Wenig, 2014).

The retail sector has also been greatly affected by globalisation which has led to companies
being less dependent on certain markets and consequently led to endless possibilities for
businesses as well as consumers (Deloitte, 2012). However, the characteristics of globalisation
have also led to increased competition and new consumer demands (Deloitte, 2012). Even
though both digitalisation and globalisation have led to intense competition, Ernst & Young
(2011) identified the two transformations as having a twofold opportunity for meeting
consumers’ desire for options and engagement, and businesses’ aim of gaining and retaining
consumers. Further, as a result from fierce competition derived from digitalisation and
globalisation, it is suggested that retailers need to advance and innovate in order to last
(Deloitte, 2012; Wenig, 2014). Subsequently, constant development and transformation of
retail formats, with the target audience in mind, is essential (Wenig, 2014).

In Fung Global Retail & Technology’s (2018) report on retail trends for 2018, five consumer
demands which put pressure on retailers are identified: new concepts and touchpoints, value
life-improving services, communication and experience, partnerships with technology
companies and social media influencers and technology for competitive advantage (FGRT,
2018). Further, in order to face the ambiguous and highly competitive environment within the

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retail sector, companies need to focus on their core and the aspects which create their
distinctiveness (Benson-Armer, Noble & Thiel, 2015). However, what also needs to be taken
into consideration are the consumers as well as current buzz and trends; what do consumers
crave, need and what are they ready to pay for today? (Benson-Armer, Noble & Thiel, 2015).
New demands can often be faced with help from innovation and in order to operate in a novel
and creative way, collaborations and technology are recommended (Benson-Armer, Noble &
Thiel, 2015).

The need for transformation of retail formats and concepts is today more apparent than ever
and traditional shopping areas are under high pressure (Butler, 2018). Several retailers have
during the last year faced severe difficulties and companies have been forced to close stores
or file for bankruptcy (Butler, 2018). Reasons for the difficulties are seen in consumers who
prefer online shopping as well as changed preferences regarding what they are willing to
spend money and time on (Butler, 2018). For example, social media, leisure, travels, eating
out and technology tend to receive time and money from consumers rather than retail stores
(Butler, 2018). Lately, U.S. retailers such as Claire´s, Toys”R”Us and Southeastern Grocers have
filed for bankruptcy, all due to increased competition and decreased numbers of store visitors
resulting from digitalisation and globalisation (Bomey, 2018; Giammona, 2018; Kary, Linsell &
Orr, 2018). Hence, in order to avoid the ‘retail apocalypse’ (Butler, 2018; Kary, Linsell & Orr,
2018), retailers need to rethink and develop new strategies sooner rather than later. As a
retailer, you “need to understand your market, be creative and use lateral thinking” in ways
that create concepts which cannot be experienced at home (Cooper, n.d. cited in Butler,
2018).

To successfully compete with or even conquer the online retail landscape, retailers with brick-
and-mortar stores need to differentiate and take advantage of key offline aspects such as
product touch and feel, personal contact and advice from personnel as well as experiences
and a sense of community (Gregg, Robinson, Huang & Kohli, 2017). It is paramount to offer a
journey in order to achieve future growth and the head of retail and luxury equity research at
Cowen and Company, Oliver Chen suggests that retailers need to ask themselves what the
customers of today like to do and how this can be satisfied by a retailer (Pinsker, 2017). He
further explains that this experience often relates to activities such as eating, drinking and
working out. Thus, retailers with traditional brick-and-mortar stores need to look beyond the
concept ‘store’ and the future lays in a more comprehensive concept (Pinsker, 2017).

Today, there are numerous speculations regarding what the future holds for the physical retail
store and companies are currently experimenting with new concepts in order to develop a
solid strategy and gain competitive advantage (Bain, 2017). New retail store formats can be
exemplified with flagship stores, pop-ups, showrooms and concept stores, but also a mix of
different concepts which are considered flexible and hence challenging to classify (PWC,

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2013). To focus on extraordinary experiences, appear to be a common aspect among the
alternative concepts and to engage with consumers on another level (Bain, 2017).

In Stockholm, Sweden, companies are trying out new store formats to integrate experiences
and prepare for the future. At the mall ‘Fältöversten’, H&M opened a test store which offers
food and beverages as well as yoga classes beyond the traditional assortment of apparel and
interior (Bränström, 2018). The café is integrated into the store and called ‘It’s pleat’, and all
store decorations are moveable in order to be able to provide yoga classes in the morning
(Bränström, 2018). An additional example is the concept ‘The Lobby’, which was launched
during the spring 2018 and can be compared to a lifestyle magazine with new content each
month (Bederoff, 2018). Here, brands rent a space within the area, and marketing buzz,
inspiration and future sales are main advantages (Bederoff, 2018). Moreover, similar ideas of
combining different offerings are visible in the Stockholm-based food concept retailers Urban
Deli and Eataly. Urban Deli reflects a combination of restaurant, café, hotel, rooftop bar,
grocery store and delicacy store (Urban Deli, 2018a) and was earlier this year, 2018,
accompanied by competitor Eataly with its Italian restaurants, markets and workshops (Eataly,
2018). These are all examples of how retailers of today increasingly are trying to keep their
stores alive by being innovative and creative in order to engage with consumers and
consequently keep and increase store traffic.

1.2 Problematisation

As a response to the many challenges the retail sector is facing, such as rising consumer
demands and fierce competition (Bäckström & Johansson, 2017; Sorescu, Frambach, Singh,
Rangaswamyd & Bridges, 2011), two main stands in the debate on what will happen to this
sector in the future have emerged (Hortaçsu & Syverson, 2015). Some believe that online
retailing will dominate, and physical stores will be extinct while others propose that future
shopping will still be carried out in physical stores but in different formats (Beck & Rygl, 2015;
Bell, Gallino & Moreno, 2014; Gensler, Neslin & Verhoef, 2017; Hortaçsu & Syverson, 2015;
Jones, Comfort & Hillier, 2017; Warnaby, Kharakhorkina, Shi & Corniani, 2015). Sorescu et al.
(2011) suggest that in order to stay competitive, retailers need to embrace innovative and
new business models and re-design the way in which they create customer value. This is
supported by Ron Johnson, senior VP for retail at Apple, who argues that the physical store
should be used in new and unconventional ways to successfully compete with the online world
(Morse, 2011). He further claims that stores need to evolve into a place where consumers’
lives can be enriched, and not just a place for buying products, through an increased focus on
value creation, service and relationship building (Morse, 2011).

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The importance of an experiential store environment and customer experience is strongly
emphasised in the literature (Bäckström & Johansson, 2017, Jones, Comfort & Hillier, 2017;
Lemon & Verhoef, 2016; Morrell & Goulding, 2017; Rigby, 2011; Sachdeva & Goel, 2015).
Sachdeva and Goel (2015, p.292) refer to this as “the new experiential paradigm shift in
shopping” and claim that “success at retail is less about what the retailer has to sell and more
about how they sell it”. How to create the best in-store experience is however not agreed
upon and researchers highlight different aspects. Bäckström and Johansson (2017) argue that
focus should be on how to work with traditional store aspects such as atmosphere, layout and
personnel in innovative ways. Sachdeva and Goel (2015) claim that one way of attracting
people to the physical store is by offering sensory in-store experiences by allowing shoppers
to touch, smell, taste and test products, and to highlight hedonistic values of shopping. Yoon
(2013) argues that a holistic approach to the in-store experience is needed, focusing on the
interaction of rational, sensory and emotional elements. However, Lemon and Verhoef (2016)
highlight the fact that peer consumers have an important impact on customer experiences
nowadays, which thus are becoming increasingly social. Others propose an increased and
innovative use of technology in the physical store as a way of enhancing the customer in-store
experience (Blázquez, 2014; Dennis, Joško Brakus, Gupta & Alamanos, 2014; Poncin &
Mimoun, 2014; Rigby, 2011).

Today, more interactive and innovative shopping experiences are requested by consumers
(Jones, Comfort & Hillier, 2017). One way of satisfying this desire is the introduction of new
store formats, which is likely to influence the consumer experience (Bäckström & Johansson,
2017). Some examples of new store formats are showrooms (Bell, Gallino & Moreno, 2014;
Gensler, Neslin & Verhoef, 2017) click-and-collect stores (Beck & Rygl, 2015) and pop-up
stores (Jones, Comfort & Hillier, 2017; Warnaby, Kharakhorkina, Shi & Corniani, 2015). New
retail formats can be used for a variety of purposes, such as creating a unique shopping
experience which cannot be attained online, by moving beyond a simple focus on sales (Jones,
Comfort & Hillier, 2017). In addition to new store formats and concepts, retail mash-up spaces
are emerging where consumers can enjoy a mix of shopping, entertainment and lifestyle
elements and can be exemplified by in-store cafés and bookshops (Morrell & Goulding, 2017).

Retailing today does not have to be an either-or choice between online or physical stores.
Instead, it is important to keep in mind that the offline and online worlds are increasingly
connected through multi-/omnichannel strategies where value creation is key (Morse, 2011).
Rigby (2011) states that in order to be successful, retailers should focus on mixing physical and
digital customer experiences through an omnichannel approach, and thus offer customers
exciting experiences by leveraging the advantages of both worlds. Furthermore, a multi-
/omnichannel strategy can lead to beneficial spill-over effects between channels (Bell, Gallino
& Moreno, 2014).

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The importance of aligning marketing efforts with an organisation’s operations is widely
known and extensively discussed in existing literature (Sombultawee & Boon-itt, 2018). Thus,
we conclude from the importance to align the marketing communications with the company’s
offer, that new retail store formats and offerings consequently call for new and innovative
marketing efforts. One relatively new addition to the communication toolbox available for
marketers is social media, which is described as a social and cultural phenomenon with many
opportunities as well as challenges (Vanmeter, Grisaffe & Chonko, 2015). Social media can be
used to encourage interaction with a brand in various ways, however many companies are
unsure about how to effectively leverage this relatively new marketing tool (Barger, Peltier &
Schultz, 2016; Vanmeter, Grisaffe & Chonko, 2015). Some suggest that an emotive approach
in social media communications is preferred in order to encourage consumer engagement
with a brand (Sachdeva & Goel, 2015). Others say that social media strategies should include
influencer marketing as a way to encourage consumer-brand interaction through the creation
of trust (De Veirman, Cauberghe & Hudders, 2017).

As can be concluded by the above discussion, the future of retail is likely to be characterised
by new store formats, an increased focus on the customer experience and an integration of
the online and offline worlds through a multi-/omnichannel approach. However, there is no
consensus in research on how this will be achieved or through which retail concepts. Today,
empirical research on new store formats and the 21st century shopping process can be
considered in its infancy (Bäckström & Johansson, 2017). Consequently, further research in
the area of new and alternative retail formats has been encouraged (e.g. Bäckström &
Johansson, 2017; Ćuzović, Mladenović & Ćuzović, 2017). Indeed, there is existing research, yet
rather limited, in the area of alternative store formats, such as pop-up stores (Jones, Comfort
& Hillier, 2017) and click-and-collect concepts (Beck & Rygl, 2015) however, the format of
retail mash-up is a relatively novel phenomenon which appears to be neglected in existing
literature. Moreover, the retail store format mash-up has not yet been theoretically framed,
leading to a need for further research within the area in order to clarify and establish a
concept. Additionally, many studies within the area of customer experience in the physical
store appear to take a quantitative approach and focusing on a consumer perspective (e.g.
Blázquez, 2014; Poncin & Mimoun, 2014, Yoon, 2013), which highlights the need for this
qualitative study, which aims to explore the phenomenon of retail mash-up from a retailer’s
perspective. Today, many retailers are experimenting with mixing and mashing up different
store concepts in order to satisfy the changing needs of consumers and to offer a competitive
customer experience (Morrell & Goulding, 2017; PWC, 2013). In addition to the theoretical
importance of framing retail mash-ups as a concept, it is therefore essential from a
practitioner viewpoint as well since this concept may play an important role in securing the
survival of the brick-and-mortar store.

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1.3 Purpose and Research Questions

The purpose of this thesis is to explore the novel retail format ‘retail mash-up’ in order to
frame it as a theoretical concept. The defined concept will be compiled by investigating
strategies and practices as well as opportunities and challenges in a retail mash-up. Further,
we aspire to provide a comprehensive understanding of the retail mash-up format by
exploring the importance of customer engagement and experience in order for the physical
retail landscape to last. Based on the background and problematisation presented above,
following research questions have been formulated to assist in reaching the stated purpose:

1. How can the retail mash-up be used and managed in order to keep the physical retail
place alive?
2. How can the customer experience be enhanced through a retail mash-up to gain
competitive advantage?
3. What are the managerial challenges for retailers who develop their service mix
towards a retail mash-up format?

1.4 Aimed Contributions

We aim to contribute to the theoretical field of retail store formats in combination with the
customer experience by framing retail mash-up as a theoretical concept. This will be achieved
by pointing out main components within a retail mash-up, and thus elaborate the theoretical
field of retail research. Further, the practical aim is to increase the knowledge of retailers by
highlighting important strategies for the physical retail place’s survival through the novel retail
format mash-up. Opportunities and challenges, as well as practices and strategies, within a
retail mash-up will be explored in order to provide insights on how to successfully manage a
retail mash-up format. These insights have the potential to be used as a guideline for retail
companies aiming to develop into a retail mash-up. Consequently, by providing an increased
understanding of this new retail phenomenon, we aspire to encourage retailers to dare
innovating and experimenting with new and combined retail concepts.

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1.5 Thesis Outline

•The first chapter contains an introduction into the research area of retail mash-up
by providing the reader with a background of the phenomenon as well as a
problematisation which depicts the importance of further research in relation to
retail mash-ups. The background and problematisation is followed by the purpose of
Introduction this thesis and the three research questions and finalised with our aimed
contributions.

•The literature review represents the second chapter and illustrates existing
literature streams related to the retail sector and mash-ups. From evaluating
previous research, we identified five relevant themes; Retail and Innovation, The
Physical Store, Customer Experience, Multi-/Omnichannel Strategies and Retail
Literature Marketing Communication. A conceptual framework concludes the chapter and
Review shows how the literature themes and the phenomenon retail mash-up are related.

•In the third chapter, we present the different techniques and methods which we
have used in order to collect valuable empirical material from Urban Deli and
conduct a trustworthy research overall. Each part portrays the relevance of the
Methodology chosen methods and is illustrated with examples.

•The fourth chapter includes our empirical material, both primary and secondary.The
primary empirical material is based on interviews and reflects the Urban Deli voice
as well as our observation of Urban Deli's physical atmosphere. The secondary
empirical material created from marketing communication material from Urban
Empirical Deli's websites, Facebook and Instagram.
Material

•In the fifth chapter, we introduce our combined analysis of all empirical material
collected from Urban Deli. Five themes are used to guide the reader and follow the
same strucuture as presented in the empirical material of the interviews. The
Analysis of analysis provides a foundation for the conclusions and is performed with the
Empirical literature review as a point of departure.
Material

•Finally, in the sixth and last chapter, we present our conclusions of the conducted
research and thus answer the stated research questions. Further, theoretical and
practical implications, limitations of this thesis as well as recommendations for
Conclusions further research are provided.

Figure 1: Thesis Outline

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2 Literature Review
This chapter illustrates five themes which have been identified from previous research within
the area of retail and in accordance with the thesis’ subject: Retail and Innovation, The Physical
Store, Customer Experience, Multi-/Omnichannel Strategies and Retail Marketing
Communication. Further, we have created a conceptual framework which portrays the relation
between the themes from previous literature in regard to each other as well as the examined
phenomenon retail mash-up. Hence, the chapter provides material which is useful for
upcoming chapters and for answering the research questions.

2.1 Retail and Innovation

Innovation refers to introducing something new in order to boost a firm’s growth and finances
(Townsend, 2010). It is further considered useful to gain competitive advantage, not least in
the retail sector which is known to be highly competitive (Pinto, Dell’Era, Verganti & Bellini,
2017; Sorescu et al. 2011). The critical point for retailers is to implement innovations that
reflect the company vision and simultaneously lead to sufficient profits and impress the
consumers (Rigby, 2011). There are two main types of innovation within the retail sector;
marketing innovation and technological innovation (Fuentes-Blasco, Moliner-Veláquez,
Servera-Francé & Gil-Saura, 2017; Pinto et al. 2017). Marketing innovation can involve
development in relation to merchandise or services and experience (Kotler & Keller, 2016)
whilst technological innovation regards all adoption of new technology or supply chain
optimisation (Pinto et al. 2017).

In marketing innovation, the consumer can be seen as a co-creator of value and the trigger to
create value is argued to be innovative ways of engagement between consumer and retailer
in order to fulfil hedonic needs (Pinto et al. 2017). In technological innovation, the consumer
is considered the target of a progressive retail solution and value is created through practical
solutions which fulfil utilitarian needs, rather than the marketing innovation’s hedonic needs
(Pinto et al. 2017). Further, Fuentes-Blasco et al. (2017) propose a framework which highlights
both marketing innovation and technological innovation to have positive influence on store
image and consumer value which consequently develops into customer satisfaction and
beneficial word-of-mouth. Nevertheless, their findings portray that technological innovation
has an even higher impact than marketing innovation (Fuentes-Blasco et al. 2017). It is argued
that the retail sector experiences extreme transformation about two times every century and
we are currently in one, much due to the influence and spill-over effect which technological
innovation has on the retail landscape through digitalisation and online sales (Rigby, 2011).

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2.1.1 Innovative Retail Business Models

An important aspect of innovation in retail business models is to constantly keep developing

(Sorescu et al. 2011). Once one innovation is implemented, companies should start planning
for the next in order to be a forerunner and keep the competitors behind (Reinartz, Dellaert,
Krafft, Kumard & Varadarajan, 2011; Sorescu et al. 2011). Throughout the process of
innovation, it is pivotal that retailers experiment and learn from the process of change,
however, with a clear focus on the aimed goal of the innovation in mind (Reynolds, Howard,
Cuthbertson & Hristov, 2007; Rigby, 2011). Additionally, novel and innovative ideas which are
not implemented for the time being should not be deserted but kept in mind for future acts
of development (Townsend, 2010).

Innovation is becoming more and more vital in retail business models due to the dynamic
characteristics of the industry, consumer desires and fierce competition, which lead to a need
for innovation of more traditional strategies (Sorescu et al. 2011). Retailers often rely on
previous success and consumers’ loyalty but with a changing retail landscape comes new
consumer demands which subsequently challenge current business models (Bäckström &
Johansson, 2017; Rigby, 2011). The influence of consumers’ demands on current business
models are further accompanied by technological innovations and they are both external
triggers for retail business model innovation (Sorescu et al. 2011). The retail business model
has three main aspects, namely: retailing format, activities and governance, and show how
value is created for consumers and how value is gained from the market (Sorescu et al. 2011).
Hence, a winning retail business model emphasises how products or services are sold rather
than what products or services are offered and high involvement with consumers is essential
(Sorescu et al. 2011). Innovation in the retail business model regards transformation in
relation to one or several of the three main aspects and can for example take place within
activities, the organisation of activities and the engagement with participants (Sorescu et al.
2011). Traditionally, retailers follow the motto ‘retail is detail’ which indicates small and
incremental changes, yet it is argued that this is not enough today, and more advanced
innovation is needed (Rigby, 2011; Sorescu et al. 2011). Even so, retailers should take into
account that the process of change and innovation does not imply that current strategies or
formats should be completely deserted but rather redesigned in accordance with time, trends
and current demands (Rigby, 2011).

Due to the objective of this thesis, we will now go into one of the main aspects for innovation
of the retail business model; ‘retailing format’ (Reynolds et al. 2007; Sorescu et al. 2011). As
mentioned, in order to gain competitive advantage in the highly competitive and vibrant retail
sector, innovation is needed for example by constantly developing or introducing additional
retail store formats (Hultman, Johansson, Wispeler & Wolf, 2017; Reinartz et al. 2011). Levy
and Weitz (2004) state that the retail format includes different aspects of the retailing mix, for
example approaches considering the range of offerings, prices, place and consumer

9
interaction. Sorescu et al. (2011) elaborate on this by arguing that an innovative retailing
format denotes organisation of chosen activities which should be consistent and satisfy
consumer desires and provoke emotional engagement. Moreover, according to Reynolds et
al. (2007), both business models and retail formats are dynamic, and retailers should elaborate
novel retail formats in accordance with time and the surroundings.

2.1.2 Alternative Retail Formats

Due to the process of change within the retail sector during the last decades, barriers between
traditional retail formats have become less distinctive and retailers have included new value-
adding aspects in order to gain competitive advantage (Reynolds et al. 2007). Consequently,
new types of stores have emerged in addition to traditional retail formats such as department
stores, supermarkets, discount stores and convenience stores (Ćuzović, Mladenović &
Ćuzović, 2017). Novel retail formats combine products, services, technology, people and the
surroundings in an innovative way in order to provide a special experience (Jain & Bagdare,
2009). However, the store format, store image and consumers are interconnected which
makes innovation of retail format a risky process of change for incumbents (Hultman et al.
2017). On the other hand, change of retail format may simultaneously lead to success since
the retailer controls the retail format which can be used to alter consumers’ image of the store
(Hultman et al. 2017).

Even though areas regarding alternative physical retail formats are under-researched
(Gensler, Neslin & Verhoef, 2017; Hultman et al. 2017; Warnaby et al. 2015), there appear to
be different views on the future of retail in regard to formats. Hortaçsu and Syverson (2015)
argue that large all-inclusive retail formats such as warehouse clubs and supercentres will
have an increased impact whilst most researchers focus on more personal and experiential
future retail formats. What these novel retail formats such as flagship stores, pop-up stores
and showrooms have in common is the focus on consumer satisfaction and loyalty, attained
by providing entertainment and an experience (Jones, Comfort & Hillier, 2017; Kozinets,
Sherry, DeBerry-Spence, Duhachek, Nuttavuthisit & Storm, 2002). Moreover, retailers today
feel a greater obligation to focus on consumer loyalty due to the presence of an increased
amount of different and more focused alternative retail formats (Kamran-Disfani, Mantrala,
Izquierdo-Yusta & Martínez-Ruiz, 2017).

According to Kozinets et al. (2002), flagship stores are characterised by carrying one brand,
they are owned by the brand manufacturer and work in order to build or re-build the brand
image. Hence, the brand itself is highlighted and not product sales (Kozinets et al. 2002). The
retail format flagship store is also known as concept stores and experience stores (Jones,
Comfort, Clarke-Hill & Hillier, 2010) or brand stores (Borghini, Diamond, Kozinets, McGrath,
Muñiz, & Sherry, 2009). In this format, experience and constant innovation are encouraged

10
through the combination of myth and the conventional (Kozinets et al. 2002) with the goal of
creating an emotional consumer-brand bond (Borghini et al. 2009; Kozinets et al. 2002).

Pop-up stores have become an increasingly used concept within the retail sector and their
importance is expected to increase academically as well (Warnaby et al. 2015). The
implementation of the pop-up retail formats is triggered by high rental fees, moderations in
planning regulations and the possibility for retailers to try out products while considering
changed consumer behaviour (Jones, Comfort & Hillier, 2017). By looking into existing pop-up
stores, Warnaby et al. (2015) argue that these are distinctive through the time-limited
existence, focus on consumer-brand interaction and experiential orientation. Consequently,
consumers are considered co-creators of the experience (Jones, Comfort & Hillier, 2017). Pop-
up retailing can also in agreement with Kozinets et al.’s (2002) view on flagship stores be
considered “an embodied form of retail advertising” (Kozinets et al. 2002, p.18) as argued by
Warnaby et al. (2015).

Finally, showrooming is a format which regards the interaction of the offline and online retail
world where the showroom operates as a place to feel and touch whilst the actual purchase
takes place online (Bell, Gallino & Moreno, 2014; Gensler, Neslin & Verhoef, 2017). On one
hand, showrooming is considered valuable due to the online and offline world having different
types of advantages, leading to a win-win situation for both consumers and retailers (Bell,
Gallino & Moreno, 2014). On the other hand, this retail format can only be successful if
consumers visit the same retailer online and offline (Gensler, Neslin & Verhoef, 2017).
However, Gensler, Neslin and Verhoef (2017) suggest that consumers often take advantage of
a physical retail format for the physical advantages and thereafter visit a competitor for the
purchase.

2.2 The Physical Store

The retail landscape has undergone vast changes during the last decades, where we have seen
a development from shopping mainly taking place on town squares and high streets, to
shopping centres followed by enormous collections of mega stores situated outside city
centres (Hortaçsu & Syverson, 2015). The birth of the Internet and digitalisation has given rise
to a debate on whether the physical store is still needed, since digital technology is rapidly
changing society and the retail sector (Hagberg, Jonson & Egels-Zandén, 2017). One example
of the large impact the Internet has had on certain industries, is the fact that ten years ago,
people rented movies in a physical store while today, they watch them on Netflix instead
(Chopra, 2016). However, proponents of the survival of the physical store argue that it still has
an important role to play and that the risk of its disappearance is heavily exaggerated
(Hortaçsu & Syverson, 2015). This is supported by the fact that most sales still take place in

11
physical stores (Goworek & McGoldrick, 2015; Rigby, 2011) and are likely to do so in the future
as well (Hagberg, Jonson & Egels-Zandén, 2017; Morse, 2011). Further, the physical store is
stated to be the most important touchpoint in the customer meeting (Morse, 2011). Hortaçsu
and Syverson (2015) highlight that the share of sales undertaken online is larger in some
product categories, such as music, videos and books, than in others, such as food and
beverages. Consequently, it can be concluded that some product categories are more relevant
than others for the physical store which retailers should keep in mind.

A reason for the retained strong position for physical stores is the competitive advantages
they have over online channels, for example personal assistance, instant access to products
and the in-store atmosphere gratifying people’s senses, which are especially valued by
customers seeking an experiential and social shopping experience (Goworek & McGoldrick,
2015; Puccinelli, Goodstein, Grewal, Price, Raghubir & Stewart, 2009; Rigby, 2011). Rigby
(2011) highlights additional advantages required by customers in the physical store such as to
touch, test and easily return products. Moreover, Sachdeva and Goel (2015) claim that sensory
experiences are of specific importance since people like to physically experience products by
touching, tasting, smelling and trying them on, and argue that shopping consists of both
rational and emotional elements. They further argue that consumers should be encouraged
to value hedonic shopping elements, which is supported by Blázquez (2014) who found that
the likelihood of people choosing a physical store when shopping hedonic products is higher
due to the possibility of social interaction, product trial and gratification of senses.
Accordingly, in a study conducted by Bäckström and Johansson (2017), the authors discovered
that the most important factors affecting consumers’ in-store experiences are the staff, store
atmosphere and layout which also can be used to communicate the brand (Goworek &
McGoldrick, 2015). Similar findings were found by Huré, Picot-Coupey and Ackermann (2017)
who state that consumers highly value interaction with staff in store. As can be concluded,
social interaction is the most frequently mentioned competitive advantage of the physical
store, which is further supported by the Apple VP who claims that the most important feature
of retail stores should be to build deep relationships with consumers (Morse, 2011).

Despite the fact that the physical store has many distinct advantages, Sachdeva and Goel
(2015) argue that retailers need to continue to create new and unique offerings in order to
attract consumers to the physical store. One way of doing so is to work with the store design
to create an appealing in-store environment for consumers (Goworek & McGoldrick, 2015).
Both exterior and interior store design are important and should be updated on a continuous
basis to stay relevant (Goworek & McGoldrick, 2015). Further, digitalisation will most certainly
have an impact on physical stores (Hagberg, Jonson & Egels-Zandén, 2017) which are
becoming increasingly complex with the introduction of technological solutions and
conventional values being used in innovative ways (Bäckström & Johansson, 2017). Examples
of new technological solutions implemented in physical stores are self-service solutions
(Fuentes, Bäckström & Svingstedt, 2017) and electronic labels on shelves (Soutjis, Cochoy &

12
Hagberg, 2017), which most likely will affect and alter the store design and consequently the
customer experience (Rigby, 2011). The integration of technology in-store might have both
positive effects, such as an improved customer experience and an extended store visit, as well
as negative ones, such as avoidance of interaction with staff and paying less attention to other
elements of the in-store environment (Fuentes, Bäckström & Svingstedt, 2017). Thus,
digitalisation and new technology introduced in stores change the role of the personnel in the
physical store (Huré, Picot-Coupey & Ackermann, 2017; Verhoef, Lemon, Parasuraman,
Roggeveen, Tsiros & Schlesinger, 2009).

2.2.1 The Store Atmosphere

Today, the retail store is becoming a place where to spend time, and the in-store atmosphere
is thus becoming more significant (Mikunda, 2004). A higher level of innovativeness among
consumers has led to rising demands on the store atmosphere, both in regard to physical
aspects as well as the service offered (Fowler & Bridges, 2010). One important tool with which
retailers can affect the in-store atmosphere is visual merchandising (Lea-Greenwood, 1998),
often referred to as ‘the silent salesman’ (Nell & Hefer, 2015). Retailers are encouraged to use
visual merchandising to improve their offerings and thus gain competitive advantages (Nell &
Hefer, 2015) and ultimately increase sales (Kerfoot, Davies & Ward, 2003; Lea-Greenwood,
1998). Visual merchandising is a broad concept covering the overall store design, display
functions and the visual in-store communication, and aims at improving the store image,
creating a pleasant in-store atmosphere for consumers and efficiently organise the physical
store environment (Lea-Greenwood, 1998). Important factors to keep in mind when working
with visual merchandising are the overall brand image and the preferences of the target
consumer group (Goworek & McGoldrick, 2015).

Varley (2006) states that the visual merchandising toolbox contains many activities which
retailers can use in the process of working with visual merchandising, and what elements to
choose vary between retail sectors. She presents following elements as important aspects of
visual merchandising: fixtures and fittings, product presentation, displays, store layout, point-
of-sale material and window displays (Varley, 2006). Research on visual merchandising
consists of various definitions, categories and elements, but we have chosen to focus on
window displays, store layout, in-store display of merchandise and signage in the remaining
part of this section. An effective use of window displays is argued to be of vital importance
since it can attract potential customers to the store (Goworek & McGoldrick, 2015; Lea-
Greenwood, 1998) and encourage impulse buying behaviour (Gudonavičienė & Alijošienė,
2015). One strategy to attract consumers to the physical store is to continuously update the
window displays (Goworek & McGoldrick, 2015). Moreover, the store layout has shown to
have a great impact on consumer behaviour and satisfaction and should be skilfully designed
to ensure that products are easy to find (Bäckström & Johansson, 2017). Store layouts can be
based on sorting merchandise into categories by factors such as product type, colour, brand

13
or theme (Goworek & McGoldrick, 2015). Additionally, the in-store display of merchandise is
an important element in order to strengthen the brand image (Kim, 2013) and can be
performed by off-shelf and on-shelf displays (Varley, 2006). A well-organised in-store display
and presentation of merchandise can facilitate the shopping process for customers
(Bäckström & Johansson, 2017; Goworek & McGoldrick, 2015) and has been found to have an
effect on impulse buying (Gudonavičienė & Alijošienė, 2015). Further, signage can be used in
various ways, for example for advertising, providing information, finding products as well as
encouraging impulse purchases (Goworek & McGoldrick, 2015).

The most commonly mentioned objectives and outcomes of adopting a visual merchandising
strategy are to improve brand image (Goworek & McGoldrick, 2015; Nell & Hefer, 2015; Kim,
2013) and increase sales (Mehta & Chugan, 2013, Nell & Hefer, 2015; Park, Jeon & Sullivan,
2015). It can thus be concluded that the in-store environment and visual merchandising
activities are strong strategic advantages for physical stores in comparison to online
competitors. Another means, closely connected to visual merchandising, of influencing
customers’ behaviour and enhance the shopping experience in the physical store is working
with store atmospherics (Spence, Puccinelli, Grewal & Roggeveen, 2014), which refer to
tangible and intangible elements in the store (Puccinelli et al. 2009).

Store atmospherics are used to stimulate the five senses and consist of five elements: visual,
auditory, tactile, olfactory and gustatory (Spence et al. 2014) and thus affect consumers
feelings and memories (Alexander & Nobbs, 2016; Yoon, 2013). According to Kotler (1974),
the visual elements of atmospherics are brightness of lightning, colours, shapes and sizes
within the store. In addition to these elements, Goworek and McGoldrick (2015) argue that
the actual products in a store are also part of the visual atmospherics. The sight sense is often
emphasised to be the most dominant and important one to stimulate by store atmospherics
(Alexander & Nobbs, 2016; Kent, 2007). If the consumer finds the visual environment
appealing they may choose to spend more time in the store (Spence et al. 2014), which is
something that can be further encouraged by altering colours and lightning (Soars, 2009). An
example is that the usage of lightning in the right way can increase sales of specific products
(Goworek & McGoldrick, 2015). Different colours can also have an impact on consumers by
influencing their emotional state (Kent, 2007; Soars, 2009) and purchasing decisions (Soars,
2009; Spence et al. 2014). Cold colours such as blue and green have a calming effect while
warm colours such as red and yellow are more physically stimulating (Bellizzi, Crowley & Hasty,
1983; Soars, 2009). The auditory element of store atmospherics consists of music and other
sounds which can be altered by changing the tempo, type and volume, in order to affect
consumers’ store perception and behaviour (Spence et al. 2014) as well as time spent in store
and purchase decisions (Soars, 2009).

The olfactory element stimulates smell and has been argued to be closely related to feelings
and their linkage to memories. To stimulate consumers sense of smell offers large

14
opportunities for retailers (Spence et al. 2014), for example positive perception of the in-store
environment, shorter perceived dwell-time and positive effects on purchase behaviour and
increased store preference (Soars, 2009). However, retailers need to be considerate in the
choice of fragrance, which should be related to the type of store in order to positively
influence consumer behaviour (Parsons, 2009). Tactile store atmospherics aim to stimulate
the sense of touch and includes products, shop fittings and fixtures (Goworek & McGoldrick,
2015). Giving consumers the chance to touch and interact with products is an important
success factor for physical stores (Spence et al. 2014), since it can affect buying intentions
through a higher likelihood of purchase (Soars, 2009), which is something that cannot be
achieved online (Goworek & McGoldrick, 2015). The fifth and final atmospheric element is the
gustatory, stimulating taste. This is especially useful for retailers in the food industry and
research has found that letting consumers taste a product may make them more inclined to
purchase it (Spence et al. 2014). Spence et al. (2014) argue that a suitable combination of
store atmospherics, providing a multisensory stimulation, can have synergistic effects and
thus an even greater impact on consumers experience than the sum of individual ones, and
consequently increase sales. This is a reason for the growing attention being paid to sensory
marketing, as discussed by several researchers (e.g. Agapito, Valle & Mendes, 2012; Krishna
& Schwarz, 2014; Spence & Gallace, 2011).

The previous discussion of advantages of physical stores, in-store design, role of technology,
visual merchandising and store atmosphere raises the question of what to focus on as a brick-
and-mortar retailer. Some claim that the main focus should be on improving the in-store
environment to provide positive customer experiences (Sachdeva & Goel, 2015), others argue
that focus should be on technological development (Dennis et al. 2014; Poncin & Mimoun,
2014) and some urge the need to strengthen and improve the quality of traditional features
such as staff-customer interaction and to offer an appealing store layout by carefully consider
how to arrange product displays (Bäckström & Johansson, 2017). It is also claimed that the
key focus for retailers should be to produce new types of customer value in order to improve
their lives (Morse, 2011). Sachdeva and Goel (2015) argue that retailers should focus on in-
store communication that engages customers emotionally, which might impact their
consumer behaviour and lead to a desire to interact with the brand. In conclusion, it is of vital
importance today to fully appreciate the multi-faceted nature of the physical store (Bäckström
& Johansson, 2017).

15
2.3 Customer Experience

The concept of ‘experience’ within a consumption context was conceptualised by Pine and
Gilmore (1998 p.3 cited in Lemon & Verhoef, 2016) who described this as something a
consumer buys in order to “spend time enjoying a series of memorable events that a company
stages […] to engage him in an inherently personal way”, which distinguishes experiences from
products and services. Historically, the attention paid to customer management has been
focused on how consumers can create value for the company, and not the other way around
(Lemon & Verhoef, 2016). The popularity and focus dedicated to the concept customer
experience has grown tremendously in recent years and is today a great buzz word in the
business world (Lemon & Verhoef, 2016), sometimes even referred to as a ‘paradigm shift’
(Jain & Bagdare, 2009, Sachdeva & Goel, 2015).

Customer experience is a subjective (Meyer & Schwager, 2007), all-inclusive construct

encompassing a consumer’s emotional, social, cognitive, sensory and spiritual responses to
direct or indirect encounters with a firm (Bolton, Gustafsson, McColl-Kennedy, Sirianne & Tse,
2014; Lemon & Verhoef, 2016). Included in the customer’s experience are all interactions with
a company (Grewal, Levy & Kumar, 2009), such as physical environment, staff and peer
consumers (Bolton et al. 2014) as well as the firm’s offering in terms of products and services,
packaging, advertising, convenience and customer service quality (Meyer & Schwager, 2007).
In addition, past experiences of the customer as well as actions of competitors may also have
an influence (Lemon & Verhoef, 2016). The customer experience is a holistic construct of all
phases in the purchase process, through all channels and touchpoints (Bolton et al. 2014;
Verhoef et al. 2009; Lemon & Verhoef, 2016). To illustrate the complexity of the customer
experience, Lemon and Verhoef (2016) distinguish between different categories of
touchpoints which all may impact the customer experience, namely:

• Brand-owned (managed and controlled by the company, for example advertising and
loyalty programmes).
• Customer-owned (no firm influence or control).
• Partner-owned (designed and monitored by firm and external partners).
• Social/independent-owned (other shoppers, peers, independent sources of
information).

Companies across various sectors, including retail, focus on the creation of a superior
customer experience journey (Edelman & Singer, 2015). This can be described as a dynamic
process over time which encompass the entire purchase process and all touchpoints (Lemon
& Verhoef, 2016; Rawson, Duncan & Jones, 2013) with the aim of improving the overall
customer experience (Bolton et al. 2014). Research on the outcomes of successfully managed
customer journeys carried out by Rawson, Duncan and Jones (2013), discovered that these

16
can generate advantages for companies, such as higher profits, differentiation from
competition as well as increased consumer and employee satisfaction.

This development has led to consumer behaviour becoming increasingly complex in the
contemporary society (Lemon & Verhoef, 2016), due to a constantly growing number of
options and channels (Meyer & Schwager, 2007). This trend has contributed to decreased
control for companies (Lemon & Verhoef, 2016) and brought forth a need for actively working
with the customer experience (Meyer & Schwager, 2007). A positive customer experience has
become a means of creating competitive advantage (Jain & Bagdare, 2009) and consequently
a highly prioritised managerial objective (Lemon & Verhoef, 2016), often included in
companies’ mission statements (Verhoef et al. 2009). In order to manage and comprehend
customer experience, a capacity to observe and measure how consumers respond, in terms
of perceptions and attitudes, to the company’s offer is required (Lemon & Verhoef, 2016),
which often is a challenging and complex task (Bolton et al. 2014). In the work by Lemon and
Verhoef (2016), it is suggested that the management of customer experience should focus on
experiences and continuous innovation.

Due to the growing importance of customer experience and the complex management issue,
many companies are today creating special positions for customer experience managers,
officers and vice presidents, responsible for creating a positive customer experience and to
monitor all firm-consumer interactions (Edelman & Singer, 2015; Lemon & Verhoef, 2016).
However, due to the holistic and complex nature of the customer experience, some argue that
the whole organisation should be engaged in creating a strong customer experience (Rawson,
Duncan & Jones, 2013), and sometimes even external partners (Lemon & Verhoef, 2016). The
outcomes of a positive customer experience can be seen in increased customer trust, loyalty
and advocacy (Lemon & Verhoef, 2016) in addition to growth and improved business
performance which demonstrates its strategic importance (Bolton et al. 2014; Verhoef et al.
2009). In a retail setting, additional advantages can be gained by offering a strong customer
experience, such as longer dwell-time in the store, increased sales, higher likelihood of re-
visits and positive word-of-mouth (Grewal, Levy & Kumar, 2009; Jain & Bagdare, 2009).

2.3.1 The Creation of a Successful Experience

To create strong and competitive customer experiences is paramount in order to ensure

companies’ survival within the highly competitive retail sector (Grewal, Levy & Kumar, 2009).
Grewal, Levy and Kumar (2009) argue that attention to details is key for retailers since these
can have a big impact on the customer experience, and also suggest that retailers should work
with traditional elements such as promotion, merchandise, price and location to create a
strong customer experience. To create a positive and successful customer experience, Lemon
and Verhoef (2016) argue that firms must adopt a customer-centric mind-set. This is
supported by Bolton et al. (2014) who state that the customer experience should be

17
innovative and constantly improved in order to respond to customer’s needs. They exemplify
how this can be done in a retail store by portraying a firm as a host who must make the guests
(i.e. consumers) feel comfortable by working with store atmospherics and friendly service.
Further, they argue that a strong customer experience can be developed by empowering
employees to customise the interaction with consumers and considering their input (Bolton
et al. 2014).

One trend within shopping and customer experience is the increasingly social nature and
importance of interaction between staff and peer customers in the retail store which create
an increased value for consumers and thus have an effect on the customer experience
(Bäckström & Johansson, 2017; Lemon & Verhoef, 2016; Lin & Liang, 2011; Russo Spena,
Caridà, Colurcio & Melia, 2012; Verhoef et al. 2009). Interestingly, Lin and Liang (2011) found
the interaction between customers to be the most important, which is something the retailer
has limited or no control over (Verhoef et al. 2009). Another growing trend within customer
experience is co-creation, where the customer is actively engaged in jointly producing their
experience together with firms (Bolton et al. 2014; Fellesson & Salomonson, 2016; Lemon &
Verhoef, 2016; Prahalad & Ramaswamy, 2004; Rigby, 2011; Russo Spena et al. 2012). In
addition, Edelman and Singer (2015) suggest an increased, and possibly proactive,
personalisation of customers experiences, for example by using automation technology and
customer data to further engage customers. Prahalad and Ramaswamy (2004) argue for an
increased importance and focus on individualised and co-created customer experiences.

2.3.2 The Importance of Entertainment

The focus on in-store entertainment as a means of creating a strong and positive customer
experience is growing in the retail sector (Jain & Bagdare, 2009; Keng, Huang, Zheng & Hsu,
2007; Rigby, 2011; Sachdeva & Goel, 2015). Rigby (2011) states that conventional retailers
should transform consumption by offering an emotive, exciting and entertaining experience,
which cannot be offered by online competitors. Keng et al. (2007) suggest that retailers should
design the in-store environment in a theatrical way which promotes fun, engagement and
entertainment, and Jain and Bagdare (2009) describe how retailers arrange events and social
gatherings for consumers. Sachdeva and Goel (2015) add to the discussion on how to entertain
and engage with consumers and suggest that retailers should offer sensory in-store
experiences, allowing consumers to touch, smell, taste and test products.

A real-life example of a company that has embraced the trend of entertainment is Disney,
which is rethinking the traditional retail store and has transformed it into an entertainment
centre containing interactive elements offering a fun experience for the whole family (Rigby,
2011). Rigby (2011) argues that digital technology will offer endless opportunities for retailers
in their work with the physical store environment to provide an entertaining customer
experience. He exemplifies with interactive and multi-functional window displays, compelling

18
and engaging games and letting consumers design their own products in the store (Rigby,
2011). Another example described by Goworek and McGoldrick (2015) is high-tech mirrors
which can portray customers wearing pieces of clothing in different colours without trying
them on. Rigby (2011) however calls for caution and means that innovative in-store elements
should be carefully designed with the desired target customer segment in mind, and not adopt
a traditional one-size-fits-all strategy. Further, Jain and Bagdare (2009) argue that new retail
store formats can be used to create a more entertaining, interesting, pleasant and different
customer experience that exceed consumers’ expectations. Consequently, this is something
for retailers of today to keep in mind when creating superior and competitive customer
experiences (Jain & Bagdare, 2009).

2.4 Multi- / Omnichannel Strategies

Disruptive technological innovations in the retail sector (Pinto et al. 2017) have clearly been
seen during the last decade as a result from digitalisation (Ernst & Young, 2011). Even though
online retail experienced an ambiguous beginning with the “burst of the dot-com bubble”
(Rigby, 2011, p.3), it is today a huge part of the retail environment as well as of consumers’
daily life (Rigby, 2011). Hence, the retail sector has been forced to adjust in accordance with
technological developments and it is increasingly hard to separate online retail from offline
retail (Brynjolfsson, Hu & Rahman, 2013; Grewal, Nordfält & Roggeveen, 2017; Morse, 2011;
Rigby, 2011; Verhoef, Kannan & Inman, 2015). Further, it has been stated that the information
provided from the online environment impacts approximately 50 % of store sales (Rigby,
2011). However, since this percentage was increasing already in 2011 (Rigby, 2011), it can be
assumed to be even higher today, 2018. In order to stay competitive, retailers consequently
need to embrace the abundance of technological innovations and implement these into the
brick-and-mortar store which fundamentally is the most important channel (Rigby, 2011). A
forerunner of integrating technology into the physical store is Amazon, for example with the
revolutionising Amazon Go store which offers a ‘scan-and-go’ concept by using apps and
smartphones (Grewal, Nordfält & Roggeveen, 2017).

Multichannel retailing is characterised by the combination of different existing and new retail
formats and channels (McGoldrick & Collins, 2007; Zhang, Farris, Irvin, Kushwaha, Steenburgh
& Weitz, 2010). This mixed concept benefits from the channels’ different advantages which
complement each other and lead to a stronger and more effective offer (Blázquez, 2014;
McGoldrick & Collins, 2007; Zhang et al. 2010). However, multichannel retailing has developed
into a more seamless concept from integrating several channels and touchpoints;
omnichannel retailing (Verhoef, Kannan & Inman, 2015).

19
The omnichannel approach has emerged as a result from the increased usage and benefits of
technological innovations such as smartphones, websites, gaming consoles, tablets and social
media, which have created a need for increased integration of online and offline retail
concepts (Blázquez, 2014; Brynjolfsson, Hu & Rahman, 2013; Rigby, 2011; Verhoef, Kannan &
Innan, 2015). The main difference between multichannel and omnichannel approaches comes
down to the boundaries between channels. In a multichannel concept, the channels are
individual and do not overlap whereas in an omnichannel concept, the channels are
interconnected and create a seamless experience (Beck & Rygl, 2015; Verhoef, Kannan &
Innan, 2015). Hence, the omnichannel approach implies that consumers may purchase
products and services through several channels, wherever and whenever (Beck & Rygl, 2015).
To exemplify, two common retail formats within the omnichannel world are click-and-collect
(Beck & Rygl, 2015) and showrooming (Bell, Gallino & Moreno, 2014; Gensler, Neslin &
Verhoef, 2017). Furthermore, the multichannel approach focuses primarily on the retail
channels per se whilst omnichannel highlights the interaction between channels and brands
(Verhoef, Kannan & Innan, 2015).

The importance of providing a seamless experience has led to a change of focus within the
retail sector and today, omnichannel is a rather common practice among retailers and
expected by consumers (Deloitte Digital, 2018). Moreover, it is now argued that brick-and-
mortar stores are back to being the pivotal channel for retailers and former pure online
retailers such as Amazon and Alibaba have undergone a reversed development process and
opened up additional physical stores in order to provide an astonishing experience (Deloitte
Digital, 2018). Thus, it is paramount to adopt an omnichannel concept in the contemporary
society and retailers who persist with pure online or offline strategies will disappear sooner
rather than later (Brynjolfsson, Hu & Rahman, 2013; Rigby, 2011). By adopting an omnichannel
approach, consumers are offered the advantages of online retail; convenience, wide
assortment, consumer reviews, as well as the advantages of offline retail; contact with
personnel, feel and try products and an experience (Rigby, 2011). Nevertheless, the very latest
technologies such as augmented reality have enabled the previous exclusive offline touch and
feel aspect to be merged between the online and offline retail environment and is expected
to have an increased influence (Brynjolfsson, Hu & Rahman, 2013).

In order to create a winning omnichannel strategy, Brynjolfsson, Hu and Rahman (2013)

suggest that retailers should start with considering best practices from competitors in regard
to experiences, prices, and consumer relationships. Further, they state that a successful
omnichannel strategy depends on the offered product or service as well as on the chosen
consumer segment. However, even though there are several opportunities, an omnichannel
approach also faces challenges due to its complex nature (Deloitte Digital, 2018). The biggest
challenge lays in the organisation of the different online and offline channels (Deloitte Digital,
2018; Zhang et al. 2010). Additionally, it is a challenging process for retailers to integrate data

20
over channels in a consistent way, evaluate performance and analyse consumers’ behaviour
across different channels (Zhang et al. 2010).

It can be concluded that the main goal with an omnichannel strategy is to provide a seamless
experience across channels. However, consumers most likely value different aspects of the
experience which creates a need for segmentation to astonish each segment strategically
(Rigby, 2011). Therefore, in order to reach the right consumers, multi-/omnichannel retailers
need to comprehend their motivations (Kyoung-Nan & Jain, 2009). In a study by Kyoung-Nan
and Jain (2009), it is argued that both hedonic and utilitarian aspects are important in order
to predict multi-/omnichannel consumption, yet hedonic aspects appeared to have a slightly
higher influence. These findings, once again, prove the importance of creating a superior
experience for the consumers.

2.5 Retail Marketing Communication

Marketing communication facilitates retailers’ brand building since the different strategies
can be used to inform, convince and remind consumers about retailers’ offerings and their
benefits (Keller, 2010). Traditionally, the aim with marketing communication has been to gain
new consumers. Nevertheless, with time, this focus has developed into retaining consumers
instead and thus, focusing on relationship marketing rather than promotion (Goworek & Pole,
2015). Broadly, the concept IMC, Integrated Marketing Communications, is often applied
within the retail sector to highlight the importance of using various communication methods
in order to complement each other and reach different consumer segments (Goworek & Pole,
2015; Keller, 2010). There are several beneficial marketing communication methods and the
most frequently used ones are stated to be: advertising, public relations, sponsorships, sales
promotions, personal selling and word-of-mouth (Goworek & Pole, 2015). Further, during the
last decades, many alternative ways of marketing communication have emerged, and modern
marketing provides an abundance of options (Keller, 2010). Hence, retailers need to organise
these carefully and create a strategic mix of personal communication and mass
communication (Keller, 2010). Keller (2010) exemplifies personal selling, direct marketing,
interactive marketing and word-of-mouth as personal communication, and advertising, sales
promotion, events and experiences as well as public relations as mass communication.
Consequently, personal communication regards one-to-one communication whilst mass
communication regards communication with several people simultaneously (Keller, 2010).
Furthermore, marketing communication reflects an opportunity for engagement and creation
of communities, and the Internet is a particularly efficient tool for retailers to provide
interactive and personalised experiences (Keller, 2010).

21
The transition into a more digital world has not left marketing communication efforts
unaffected and of today, digital marketing has a major impact on consumers and is of great
importance for any company (Tiago & Veríssimo, 2014). One benefit of the digital
transformation for companies is the easy access to data from the various touchpoints and
consequently, the ability to track performance of different digital marketing activities in order
to improve future strategies (Kannan & Li, 2017; Keller, 2010). Additionally, Kannan and Li
(2017) argue that online and offline marketing channels are highly integrated and have a spill-
over effect on each other. Further, in relation to the rapid growth of smartphone usage,
mobile marketing has become a vital strategy in the retail landscape as retailers are able to
interact with consumers whenever they like since the majority are constantly accompanied by
a mobile device (Shankar, Venkatesh, Hofacker & Naik, 2010).

As mentioned, relationship marketing has become increasingly important with time and is
now essential in order to improve engagement in digital marketing (Tiago & Veríssimo, 2014).
The digitalisation of marketing has led to creation of various platforms which connect
consumers with companies but also with other consumers (Kannan & Li, 2017; Tiago &
Veríssimo, 2014). Further, one major distinction between digital marketing and traditional
marketing, is how easily consumers may spread information through word-of-mouth by using
social networks (Kannan & Li, 2017; Tiago & Veríssimo, 2014). This implies that word-of-mouth
information is spread to a broad audience of consumers and is no longer limited to friends
and families (Kannan & Li, 2017). Electronic word-of-mouth is therefore seen as more
advantageous than traditional word-of-mouth, however, at the same time riskier if the
transmitted message is negative (Keller, 2010; VanMeter, Grisaffe & Chonko, 2015).
Moreover, according to Tiago and Veríssimo (2014), it is nowadays a question of how
consumers use technologies and social networks rather than if they use them. Subsequently,
the last decade has seen two major trends within marketing communications, not least for
retailers, namely; social media and influencer marketing (De Veirman, Cauberghe & Hudders,
2017).

2.5.1 Social Media and Influencer Marketing

Social media channels such as Facebook, Instagram and Twitter have disrupted the digital
world (Hamilton, Kaltcheva & Rohm, 2016) and Instagram is considered one of the most
suitable channels for electronic word-of-mouth (De Veirman, Cauberghe & Hudders, 2017).
Tiago and Veríssimo (2014) argue that companies have to use social media as an information
and interaction tool in order to strategically benefit from the Internet and generate profits. It
is further an inevitable marketing channel since the majority of today’s consumers are
engaged with social media and subsequently, companies must be present and active in the
social media world as well (Tiago & Veríssimo, 2014; VanMeter, Grisaffe & Chonko, 2015).
However, even though most companies use social media today, due to both external and
internal forces (Tiago & Veríssimo, 2014), the majority of companies in VanMeter, Grisaffe

22
and Chonko’s (2015) study did not perceive themselves to do so in an efficient way. This
complexity comes down to that companies do not know exactly how to use social media
strategically (VanMeter, Grisaffe & Chonko, 2015). Further, Hamilton, Kaltcheva and Rohm
(2016) suggest that companies need to invest time and effort into their social media strategies
regarding content and maintenance in order to keep consumer interactions successful. Hence,
there is no “one-size-fits-all strategy” but companies need to find their niche in regard to the
consumer segment and their business’ operations (Hamilton, Kaltcheva & Rohm, 2016, p.122).

One of the most recent trends in regard to digital marketing and social media is the adoption
of influencer marketing (De Veirman, Cauberghe & Hudders, 2017). Social media influencers
are defined as “people who have built a sizeable social network of people following them” (De
Veirman, Cauberghe & Hudders, 2017, p.798). The influencer can be compared with a content
creator who spreads messages through blogs, vlogs or shorter content forums such as
Instagram or Snapchat (De Veirman, Cauberghe & Hudders, 2017). Hence, in order to use
influencer marketing strategically, companies need to look for influencers who are the most
likely to be adored and considered trusted by their consumers and consequently become
beneficial brand endorsers (De Veirman, Cauberghe & Hudders, 2017; Weiss, 2014).

23
2.6 Conceptual Framework

The following conceptual framework has been created in order to illustrate how the presented
literature themes are connected to the explored phenomenon in this thesis; retail mash-up.
In Figure 2, Innovation, Customer Experience and The Physical Store are presented as
cornerstones which influence a retail mash-up. Subsequently, Marketing Communication
Adaptation as well as Technology and Omnichannel Adoption are presented as two aspects
which are affected by the retail mash-up. Figure 2 highlights the relationships and logic of the
chosen literature in regard to the phenomenon of retail mash-up and provides a helpful
foundation in order to answer the research questions.

Figure 2: Conceptual Framework

24
3 Methodology

This chapter is presented in order to show the relevance of the methodological choices
connected to the area of research and research questions. Firstly, the research design
containing the purpose, philosophy, approach and strategy is discussed. Secondly, the
collection of empirical material is presented with interviews as the main method. Finally, the
method of analysis and quality of research are described.

3.1 Research Design

3.1.1 Research Purpose

The research purpose of this thesis is twofold: exploratory and descriptive. Due to the
limitation of previous research within the field of the retail mash-up, the purpose of our
research is exploratory since we aim to gain new insights and an understanding of the nature
of the phenomenon (Saunders, Lewis & Thornhill, 2009). Further, the exploratory purpose
enabled us to start our work in broad terms by studying the literature related to and relevant
for the area of retail mash-ups, and subsequently narrowing down the focus when patterns
emerged during fieldwork (Saunders, Lewis & Thornhill, 2009). The explorative purpose
provided us with a flexible and open-minded approach to the area of study (Saunders, Lewis
& Thornhill, 2009). We chose to interview professionals within the field of retail mash-ups
which is a beneficial and main approach when it comes to explorative studies (Saunders, Lewis
& Thornhill, 2009).

The purpose is also descriptive since we aim to theoretically as well as practically describe the
characteristics (Merriam, 1994) of a retail mash-up format. This is due to the fact that we
wanted to have an as clear perception as possible of the phenomenon of retail mash-up and
its elements before going on with the explorative part of the study and collecting the empirical
material (Saunders, Lewis & Thornhill, 2009). Description concerns to facilitate the
understanding of a phenomenon by looking into its different parts and thus provide a clear
picture of what is being studied, in our case the novel phenomenon of retail mash-up (Miles
& Hubermann, 1994). After collecting and analysing the empirical material, we thus provided
a detailed description of the retail mash-up format within the studied context in line with
common practice in qualitative research (Bryman & Bell, 2011).

25
3.1.2 Research Philosophy

According to Saunders, Lewis and Thornhill (2009, p.110), “ontology is concerned with nature
of reality” and our assumptions of how it is organised and operates. In this thesis, we were
inspired by the ontological stance of relativism since we acknowledge that there is no single
perspective about reality, but many different ones based on people’s subjective experiences
which all might be relevant (Easterby-Smith, Thorpe & Jackson, 2015). In our study, we talked
to people in varying positions and with different levels of responsibility to gain a holistic
understanding of their individual perceptions and perspectives of working with and managing
a retail mash-up format in a specific social context (Bryman & Bell, 2011). We also do not
believe that there is one single ‘best practice’ approach to retail mash-ups, but that several
approaches might be feasible which further motivates our relativist inspired outset.

Epistemology concerns how we acquire knowledge about the world, and which type of
knowledge should be considered valid (Bryman & Bell, 2011). Since we started from the idea
that there are several perspectives, we were inspired by a social constructionist standpoint to
the acquisition of knowledge, thus acknowledging that the retail scene is a social construct
made up by people and consequently has different meanings based on subjective experiences
and interpretations (Easterby-Smith, Thorpe & Jackson, 2015). Our aim with this study was to
explore opportunities and challenges as well as strategies of the mash-up retail concept which
was carried out by trying to understand people’s different experiences as a starting point
(Bryman & Bell, 2011; Easterby-Smith, Thorpe & Jackson, 2015). Due to our aim to understand
and frame the under-explored phenomenon of retail mash-up, our research philosophy, as
described above, complies with our objective of theory development and generation
(Easterby-Smith, Thorpe & Jackson, 2015) and qualitative method as discussed below (Bryman
& Bell, 2011).

3.1.3 Research Approach

A qualitative method was adopted in this thesis due to the nature of the stated research
questions, focusing on understanding how and why aspects regarding management of retail
mash-ups. Additionally, we considered a qualitative method to be most suitable in order to
gain a deeper understanding of the phenomenon of retail mash-up (Easterby-Smith, Thorpe
& Jackson, 2015) and thus fulfil our stated research purpose. In line with our qualitative
approach, we collected and analysed non-numerical empirical material consisting of words
and marketing material such as photos through several channels (Bryman & Bell, 2011). Our
interest for the area of study laid in gaining a context dependent understanding, which would
frame the new theoretical concept of retail mash-ups and thus, make a novel contribution to
the theoretical field based on the empirical material rather than testing existing theory
(Bryman & Bell, 2011). Further, the less structured nature of the qualitative method (Bryman
& Bell, 2011; Easterby-Smith, Thorpe & Jackson, 2015; Merriam, 1994) fits our thesis’ topic of

26
retail mash-up, as argued an under-researched area, since it facilitates a genuine
understanding of people’s views of the world (Bryman & Bell, 2011).

We use a combination of methods and sources of empirical material: qualitative interviews,

observations and secondary material, and this is consequently a qualitative multi-method
study (Saunders, Lewis & Thornhill, 2009). This choice is based on the many advantages this
approach can yield and, in our case, the gaining of deep insights and understanding the retail
mash-up phenomenon from different perspectives as well as an increased credibility of the
study (Easterby-Smith, Thorpe & Jackson, 2015). Further, the choice of collecting secondary
marketing material as natural existing data, in comparison with the interview accounts, was
motivated by our desire to get a richer understanding of the phenomenon of retail mash-up
by studying several empirical sources (Alvehus, 2013).

Since a deductive approach often builds on testing existing theory, and an inductive approach
aims at generalising findings into theory which emerge out of empirical observations without
reliance on previous theory (Alvehus, 2013; Bryman & Bell, 2011), these approaches can be
seen as unrealistic ideals (Alvehus, 2013) and were therefore not considered suitable in this
thesis. Instead, we take an abductive approach since this was considered most appropriate
due to the novelty of the research area (Dubois & Gadde, 2002). Thus, we have systematically
combined inductive and deductive elements since we iteratively moved between the
theoretical world of previous research and the empirical world of retail mash-ups in order to
gain a deep understanding of the phenomenon (Alvehus, 2013; Dubois & Gadde, 2002). The
process started by reviewing literature in relevant theoretical areas, due to the limited
research within the specific area of retail mash-ups. The empirical material was then collected,
inspired by concepts from previous literature to find out if, and in which way, they were
applicable in the context of retail mash-ups. Consequently, we returned to the theoretical
framework to develop this based on the empirical material and thus develop theory within
the field of retail research. This way of working is in accordance with the abductive systematic
combining approach proposed by Dubois and Gadde (2002), who suggest a certain reliance on
previous theory in comparison to a purely inductive approach. Finally, an abductive approach
is also considered to be suitable in case study research which is our chosen research strategy
(Dubois & Gadde, 2002).

3.1.4 Research Strategy

Our qualitative approach guided the choice of research strategy which in this thesis follows a
case study design, which was believed appropriate for gaining new insights (Merriam, 1994)
into the phenomenon of retail mash-up. According to Stake (1995, cited in Bryman and Bell,
2011, p.59) “case study research is concerned with the complexity and particular nature of
the case in question”. In line with this basic form of case study research, this thesis focuses on
an intense and in-depth analysis of one case; how a retail mash-up and its operations is

27
managed by constructing an offering consisting of many different parts, and one unit of
analysis, Urban Deli; a Swedish retailer currently testing a set of various retail formats
combined in one setting, and the thesis is thus a single case study (Bryman & Bell, 2011). Our
chosen case can be argued to be a representative and instrumental one, since it exemplifies
the management of the phenomenon of retail mash-up by depicting an organisation which
actively works with this retail format, with the aim of generating an understanding of the
phenomenon (Bryman & Bell, 2011).

A case study is also a suitable research strategy when combining several types of empirical
material (Bryman & Bell, 2011; Saunders, Lewis & Thornhill, 2009), which we have chosen for
our collection of empirical material in order to gain a comprehensive understanding of the
phenomenon of retail mash-up. Another characteristic of a case study strategy is that the
empirical study is conducted in a real-life setting which also is applicable in our study, where
Urban Deli is the chosen unit of analysis and thus substitutes the context of the study
(Saunders, Lewis & Thornhill, 2009). We chose to study the present-day phenomenon of retail
mash-up by collecting empirical material from different sources, on site at Urban Deli
Sveavägen in Stockholm (Saunders, Lewis & Thornhill, 2009). Further, another reason for
finding a case study suitable for this thesis was its descriptive character, which may present a
detailed account of retail mash-ups, and thus served to provide new insights in the novel
research area (Merriam, 1994).

Case studies are argued to be appropriate for answering questions like how and why in
exploratory studies (Saunders, Lewis & Thornhill, 2009), thus in line with our stated research
questions and exploratory research purpose. As mentioned, we aim to add and develop theory
in the retail field by framing mash-ups as a theoretical concept. A case study was therefore
considered suitable for this aim in accordance with Eisenhardt’s (1989) support for case
studies as a means of building theory. She argues that case studies are likely to produce novel
and creative theories which are empirically valid due to the close interrelation between the
empirical world and the development of theory (Eisenhardt, 1989). Moreover, to use case
studies for building theory is suitable when limited knowledge exists about a phenomenon
(Eisenhardt, 1989), such as the retail mash-up, which further supports our choice of research
strategy in this thesis.

3.2 Collection of Empirical Material

In order to develop empirical material in a rich way, we chose to include both primary and
secondary empirical material. The active, primary material was collected in two different
ways: in-depth interviews with employees at Urban Deli as well as visual material in the form
of photographs of Urban Deli’s facilities which we took during our visit there (Bryman & Bell,

28
2011; Easterby-Smith, Thorpe & Jackson, 2015). Through the combination of two different
methods of creating primary material, and thus two different angles, our goal was to develop
a comprehensive understanding of the phenomenon retail mash-up (Alvesson, 2003; Bryman
& Bell, 2011). Due to its novel character, we wanted to include several methods in order to
ensure a truthful analysis and conclusion. Further, the passive, secondary material was
compiled through Urban Deli’s marketing communication material (Bryman & Bell, 2011;
Easterby-Smith, Thorpe & Jackson, 2015). We chose to include secondary empirical material
as a complement to the information gathered from interviews and observation of atmosphere
in order to gain an even more comprehensive picture of the phenomenon retail mash-up
(Easterby-Smith, Thorpe & Jackson, 2015; Saunders, Lewis & Thornhill, 2009). Moreover, the
choice of combining primary and secondary empirical material comes down to the suitability
with our combined research purpose which is exploratory as well as descriptive (Easterby-
Smith, Thorpe & Jackson, 2015; Saunders, Lewis & Thornhill, 2009). By developing empirical
material through both primary and secondary sources, we hoped to reach our objectives and
answer the research questions in an efficient and trustworthy manner (Bryman & Bell, 2011;
Saunders, Lewis & Thornhill, 2009). Additionally, by facing the issue from several perspectives,
we aspired to adopt a more reflexive approach (Alvesson, Hardy & Harley, 2008).

3.2.1 Primary Empirical Material

Interviews
Our main method for creating primary empirical material was through eight in-depth
interviews and one follow-up interview for validation, and hence focus was on the natural
language (Easterby-Smith, Thorpe & Jackson, 2015). We conducted the interviews face-to-
face in order to have the possibility to include non-verbal cues provided from eye contact and
body language, however the follow-up interview was conducted telephonically for practical
reasons (Bryman & Bell, 2011; Saunders, Lewis & Thornhill, 2009). Each interview took
approximately one hour which was sufficient to gain the needed information. This time was
used by asking the interviewees questions with the basis in our pre-defined interview guides,
see Appendix A and B, but also by ensuring that we had enough time for the interviewees to
add more information when desired (Bryman & Bell, 2011). The follow-up interview took
approximately 30 minutes and the questions asked can be seen in Appendix C and D. The
interviews were not conducted in an interrogative manner but as a conversation and we as
researchers constructed empirical material together with the interviewees in a two-way
discussion (Easterby-Smith, Thorpe & Jackson, 2015; Kvale, 2006). By doing so, we aimed at
eliciting the interviewees true opinions and views which might have been partly unconscious
and thus, stimulated by a casual conversation (Kvale, 2006). The conversation and joint
creation of material also enabled us to understand the retail mash-up format and strategies
in its context since illustrations and examples were provided by the interviewees, both
automatically and through the ladder up and down technique (Easterby-Smith, Thorpe &

29
Jackson, 2015). Hence, we tried to emphasise the interview setting and the opportunity for
the interviewees to talk and explain on their own accord as well as detract focus from us and
our position as interviewers (Alvesson, 2003). Further, by conducting the interviews at the
interviewees’ place of work and in their native language Swedish, we were able to create a
comfortable and casual situation for all parties involved.

The interviews were conducted in a semi-structured manner with open-ended questions,

appropriate for the purpose to frame retail mash-up as a theoretical concept and understand
the concept by exploring strategies and practices (Easterby-Smith, Thorpe & Jackson, 2015).
In order to create empirical material which would help us achieve this goal, an understanding
of the interviewees perspectives and the ground of their thoughts about the phenomenon
were needed (Alvesson, 2003; Easterby-Smith, Thorpe & Jackson, 2015; Kvale, 2006). Hence,
we considered the semi-structured way as most suitable to get answers to our questions at
the same time as the interviewees were able to talk freely and we could add follow-up
questions in accordance with the conversation’s course (Kvale, 2006; Saunders, Lewis &
Thornhill, 2009). This flexibility was, as mentioned, enabled by preparing an interview guide
with themes and flexible questions beforehand and not having a strict protocol with questions
(Kvale, 2006). Further, the achieved flexibility was needed since we wanted to alter the
questions and language slightly between the different interviews due to the interviewees
different positions and areas of expertise (Bryman & Bell, 2011). We divided the interview
guides into three main parts, including opening questions, key questions and concluding
questions, in order to create some structure (Easterby-Smith, Thorpe & Jackson, 2015).
Further, the key questions were divided into five sub-sections in accordance with the
literature review. Nevertheless, the first questions were more open and asked in an
unstructured way since we wanted to understand their perspective and definition of a retail
mash-up (Bryman & Bell, 2011) before continuing with more defined questions which
inevitably might have impacted the interviewees to some extent (Alvesson, 2003). Finally, the
interviews were recorded in order for us to listen to them at several occasions which
facilitated the upcoming analysis and ensured the quality of research (Bryman & Bell, 2011;
Saunders, Lewis & Thornhill, 2009).

Visual Empirical Material

The visual empirical material was created through photographs which we chose to include as
a complement to the interviews (Bryman & Bell, 2011; Easterby-Smith, Thorpe & Jackson,
2015). This complement made it possible for us to include material which we could not create
from the interviews and consequently, the combination led to a richer understanding (Bryman
& Bell, 2011). The photographs of Urban Deli’s facilities gave us the opportunity to explore the
retail mash-up from another perspective which contributed to a deeper understanding of the
research area. We found it highly relevant to include photographs of the store atmosphere in
order to reflect the format of retail mash-ups truthfully since this is a novel concept of which
limited knowledge exists. Hence, we wanted to illustrate the phenomenon and elements

30
within this retail store format in an easily understood way (Bryman & Bell, 2011). By taking
photographs, we were able to freeze the moment which was beneficial for our understanding
as well as supportive of the analysis of empirical material (Easterby-Smith, Thorpe & Jackson,
2015). Further, the quality of the visual empirical material is enhanced since we stayed at
Urban Deli for four days and got the opportunity to observe all aspects with our own eyes.

3.2.2 Secondary Empirical Material

The secondary material was collected through Urban Deli’s marketing communication
channels. We considered visual and virtual documents by looking into their website as well as
social media channels (Bryman & Bell, 2011; Saunders, Lewis & Thornhill, 2009). A retailer’s
identity and image are to a large extent created and recreated through these marketing
communication channels and were hence important aspects for us to consider in order to
rightfully explain the strategies behind Urban Deli’s operations (Bryman & Bell, 2011).

The usage of secondary material led to an advantage for us since we were able to include
material which was created before we started this research process, and this more
longitudinal view would not have been possible without Urban Deli’s marketing
communication material (Bryman & Bell, 2011; Easterby-Smith, Thorpe & Jackson, 2015).
Moreover, we gained the benefit to explore Urban Deli’s material which in addition to our
own material contributed with an additional viewpoint for the framing of retail mash-up as a
theoretical concept (Saunders, Lewis & Thornhill, 2009). Further, the choice to include
marketing communication material from Urban Deli goes well with our descriptive purpose as
well as our case study research design (Saunders, Lewis & Thornhill, 2009).

3.2.3 Operationalisation

Table 1 describes how the areas discussed in the literature review were developed and
defined into interview questions through operationalisation and identifies the main authors
within each field (Patel & Davidsson, 2011). A brief explanation for the relevance of each
theme is also provided in order to provide an increased understanding for the upcoming
chapter with empirical material and analysis of empirical material. The operationalisation of
the themes was adapted into different interview guides adjusted to the interviewees’
positions, which can be found in Appendix A and B.

31
Table 1: Operationalisation
Concept Questions Reasoning Authors
The Physical Store 8-9 The physical place is Bäckström &
Atmosphere the most distinctive Johansson, 2017;
feature of a brick- Fuentes, Bäckström
and-mortar retail & Svingstedt, 2017;
store and it is Goworek &
essential to have an McGoldrick, 2015;
appealing in-store Lea-Greenwood,
environment to 1998; Sachdeva &
attract customers. Goel, 2015; Soars,
Therefore, we 2009; Spence et al.
wanted to examine 2014
its importance and
execution in a retail
mash-up.
Customer 10-12; 22-29 In order to gain the Bolton et al. 2014;
Experience and interviewees’ Bäckström &
Engagement perspectives on how Johansson, 2017;
to create an Jain & Bagdare,
engaging customer 2009; Lemon &
experience in a retail Verhoef, 2016;
mash-up. Rigby, 2011; Verhoef
Additionally, what et al. 2009
role engagement
and entertainment
play in this context.
Technology and 13-15 An increased usage Beck & Rygl, 2015;
Multi-/Omnichannel of technology and Brynjolfsson, Hu &
multi-/omnichannel Rahman, 2013;
strategies are Grewal, Nordfält &
important aspects in Roggeveen, 2017;
the contemporary Rigby, 2011;
retail sector and Verhoef, Kannan &
potentially for a Innan, 2015
retail mash-up as
well.
Retail Mash-Up 4-7; 16-17; 26-27; To explore the Fuentes et al. 2017;
Strategies 30-31 implementation of Hultman et al. 2017;
innovation and Kotler & Keller,
novel business 2016; Pinto et al.

32
 models in regard to 2017; Reynolds et al,
alternative retail 2007; Rigby, 2011;
formats, such as Sorescu et al. 2011
mash-ups and its
future importance.
Marketing 18-21 In order to De Veirman,
Communication investigate how Cauberghe &
Strategies marketing Hudders, 2017;
communication Goworek & Pole,
efforts are 2015, Kannan & Li,
strategically used 2017; Keller, 2010;
when a retail mash- Tiago & Veríssimo,
up format is 2014; VanMeter,
adopted. Grisaffe & Chonko,
2015

3.2.4 Selection of Interviewees

Since we aimed to theoretically frame the novel store format retail mash-up, we found
purposive sampling and more specifically the typical case method to be a suitable choice in
order to clearly illustrate the phenomenon and deeply understand its meaning within one
organisation (Easterby-Smith, Thorpe & Jackson, 2015; Saunders, Lewis & Thornhill, 2009).
The purposive sampling method facilitated the process for answering our research questions
and reach our aimed contributions with this study since we could go into depth and conduct
an intimate exploration of the retail mash-up together with Urban Deli (Saunders, Lewis &
Thornhill, 2009). Urban Deli is a forerunner and well-established concerning this novel retail
format and hence considered a suitable example of illustrating what is typical for a retail mash-
up (Easterby-Smith, Thorpe & Jackson, 2015; Saunders, Lewis & Thornhill, 2009). Further,
Urban Deli can be considered to be a typical case due to the large amount of parts included in
their offer, such as restaurant, rooftop bar, café, grocery store, delicacy store and hotel, which
was another factor motivating our choice to focus our study on this company. However, one
needs to remember that Urban Deli is rather unique in the contemporary Swedish society and
might not have the same status in other countries where retail mash-ups are more common.

The interviews were conducted in order to gain a deep understanding of Urban Deli’s
strategies and ways of operating and therefore, the interviewees were represented by Urban
Deli employees (Easterby-Smith, Thorpe & Jackson, 2015). However, in order to get insights
from different viewpoints, we chose to conduct interviews with employees who hold different

33
positions and can therefore be considered experts within their specific areas. Below, we
present Table 2 which shows all interviewees and their positions.

Table 2: Interviewees
Interviews Position Company
Interview 1 CEO Urban Deli
Interview 2 General Manager Urban Deli
Interview 3 Head Waiter Urban Deli
Interview 4 CEO Hotel With Urban Deli
Interview 5 Operations Manager Hotel With Urban Deli
Interview 6 Vice CEO and Marketing and Urban Deli
Communications Manager
Interview 7 Sales Manager, Catering and Urban Deli
Event
Interview 8 Store Manager Urban Deli
Interview 9 (Follow-up) CEO Urban Deli

3.3 Analysis of Empirical Material

Due to our social constructionist inspired research philosophy, with implications such as
subjective perspectives and knowledge being co-created by us and the interviewees as well as
an abductive approach, the process of research can be described as cyclical and flexible
(Easterby-Smith, Thorpe & Jackson, 2015). The collection of empirical material as well as
analysis was therefore a simultaneous and dynamic process, which is often described as
common practice in qualitative research (Easterby-Smith, Thorpe & Jackson, 2015; Maxwell,
2005; Miles & Hubermann, 1994) and especially in case studies where it can provide versatile
and enlightening insights (Merriam, 1994).

As a first step of the analysis, we prepared the empirical material by transcribing the audio-
recorded interviews into textual form as well as summarised and organised field notes and
photographs (Easterby-Smith, Thorpe & Jackson, 2015). Since the observation of atmosphere
and secondary material were used as complements to the interviews which reflect the main
empirical source, we chose to include all empirical material in the same analysis. We started
the analysis process immediately after the first interviews by transcribing the interview
accounts and reflected over the content and potential themes while we had the material fresh
in mind (Maxwell, 2005). During the transcription process, we also wrote memos as initial
insights, ideas and areas of specific interest emerged from the material (Easterby-Smith,
Thorpe & Jackson, 2015; Maxwell, 2005; Merriam, 1994; Miles & Hubermann, 1994). These
insights were sensitised into preliminary concepts which worked as an initial guide for the

34
analytic work (Rennstam & Wästerfors, 2015). To get an early start in analysing our empirical
material enabled us to move back and forth between our existing material and development
of our interview guide in order to collect more useful information during the following
interviews (Merriam, 1994; Miles & Hubermann, 1994).

To deal with the three problems of chaos, representation and authority within qualitative
research, we followed the three steps of sorting, reducing and arguing in the analysis of our
empirical material (Rennstam & Wästerfors, 2015). When all interviews were conducted and
transcribed, we aimed to create structure and get an overview of our empirical material
through sorting, as a first step of the final analysis (Rennstam & Wästerfors, 2015). This can
be described as ‘hanging out’ and getting familiar with the empirical material with the aim of
finding details and patterns (Easterby-Smith, Thorpe & Jackson, 2015; Rennstam &
Wästerfors, 2015). Thus, we spent extensive time repeatedly reading through the transcripts
separately and then discussed and compared our ideas and analytical interpretations of
emerging patterns, which we also labelled (Maxwell, 2005; Rennstam & Wästerfors, 2015).
We aimed to not sort the material into pre-defined categories due to the novelty of the area
of retail mash-ups, but to stay open to new patterns which emerged from the empirical
material in order to increase the originality of the generated knowledge and theory (Rennstam
& Wästerfors, 2015). The material was thus initially sorted into broader themes (Maxwell,
2005) which can be described as an intuitive process, guided by the thesis’ purpose and
research questions, where we searched for regularities and patterns (Merriam, 1994). Our
analytic work can be described as having a connecting nature since we wished to understand
our collected empirical material in its specific context which is common in a case study
approach (Maxwell, 2005). Thus, we searched for relationships that linked accounts which
would provide us with a holistic understanding of the phenomenon of retail mash-up and its
elements within the specific setting (Maxwell, 2005).

After the sorting process, we reduced the extensive empirical material in order to create a
more manageable amount of information which facilitated us to focus our analysis on the
most important parts and details within the chosen material (Miles & Hubermann, 1994;
Rennstam & Wästerfors, 2015). Due to the flexible style of analysis, the limitation of pre-
defined concepts and abductive approach, we moved back and forth between the chosen
material and what had been sorted out as the analysis progressed and new insights and
patterns emerged (Rennstam & Wästerfors, 2015). When reducing the material, we chose the
categories and themes; Managing a Retail Mash-Up; The Superior Customer Experience;
Technology, Multichannel and Marketing Communication; Managerial Challenges and Retail
Innovation and Future. We considered these to be most interesting and illustrated them with
examples and quotes from the interviews which provided a specific and thorough picture of
the phenomenon of retail mash-up and work as the basis for our interpretive exposition of
the phenomenon (Merriam, 1994; Rennstam & Wästerfors, 2015). According to Miles and
Hubermann (1994), an important step in the analysis of empirical material is to organise the

35
reduced material into a suitable display to facilitate the drawing of conclusions. Therefore, we
summarised our reduced material in a table, see Appendix E, to get an overview of our findings
and themes before drawing inferences about retail mash-ups. We based the structure of the
table from the different themes identified in the analysis of empirical material to provide a
facilitating overview of the material (Miles & Hubermann, 1994).

Sorting and reducing the empirical material laid the basis for the last step in the analysis:
arguing (Rennstam & Wästerfors, 2015). In order to relate our contribution to the work of
others, we compared our empirical material with existing research in related areas where
applicable (Rennstam & Wästerfors, 2015; Yin, 1994). Our qualitative analysis has been
systematic since we thoroughly prepared the empirical material and then followed the steps
of sorting, reducing and arguing (Rennstam & Wästerfors, 2015). Further, to have some basic
knowledge and building blocks based on previous retail literature enabled us to work in a
systematic manner but in the same time being open to new ideas. Our analysis has also been
creative since we mixed our different empirical materials from interviews, observation and
marketing material in an interactive way throughout the analysis (Rennstam & Wästerfors,
2015). This choice was based on our objective to explore and depict the phenomenon of retail
mash-up as rich and holistic as possible by including complementary forms of empirical
material. Based on our empirical material and analysis, we framed the retail mash-up as a
theoretical concept, thus adding to the field of retail research, as well as formulated practical
implications for retailers interested in adopting a retail mash-up format (Rennstam &
Wästerfors, 2015).

3.4 Quality of Research

Throughout the research process, we aimed at maintaining an open-minded approach and

welcomed various perspectives and viewpoints in order to provide as high quality as possible.
Further, we focused on transparency by being open with all our procedures and methods,
both in regard to problematisation, literature and empirical material (Bryman & Bell, 2011;
Easterby-Smith, Thorpe & Jackson, 2015; Miles & Huberman, 1994). By highlighting different
views through interviews with Urban Deli employees who possess different positions and
knowledge, our aspiration was to provide authentic, credible and interesting material
(Alvesson, Hardy & Harley, 2008; Bryman & Bell, 2011; Easterby-Smith, Thorpe & Jackson,
2015). Additionally, we tried to reduce potential bias by considering our own position and
minimise our own effect by highly encouraging and emphasising the interviewees and their
views (Alvesson, Hardy & Harley, 2008; Miles & Huberman, 1994).

Firstly, we aimed to enhance the quality of our study already in the preparations of the
interviews by ensuring that we had gained sufficient knowledge in the area as well as carefully

36
planned the Urban Deli visit (Saunders, Lewis & Thornhill, 2009). During the interviews, we
listened to what was said as well as not said and adapted our language and manner in
accordance with the interviewees to create a comfortable atmosphere and subsequently
honest answers, and a truthful analysis was stimulated (Saunders, Lewis & Thornhill, 2009).
Moreover, all interviews were audio-recorded in order to be able to go through the material
at several occasions and keep the interviewees’ answers available for participants and future
readers which creates dependability and credibility of our conducted study (Bryman & Bell,
2011; Saunders, Lewis & Thornhill, 2009). The recordings were also used for transcribing the
interviews (Easterby-Smith, Thorpe & Jackson, 2015).

The measurement of quality in qualitative research has been improved by Lincoln and Guba’s
(1985) development of alternative criteria for quality which consequently have been
extensively adopted by the research society (Bryman & Bell, 2011; Miles & Huberman, 1994).
Their criteria of trustworthiness: credibility, transferability, dependability and confirmability
are the ones we found relevant for this research and were therefore applied. Credibility is
enhanced by triangulation since we are two researchers who together have prepared,
gathered and analysed the empirical material, but also through the choice to use several
methods for collecting the empirical material (Bryman & Bell, 2011; Easterby-Smith, Thorpe &
Jackson, 2015). Additionally, the transcripts of interviews were sent out to all interviewees in
order to improve the credibility through respondent validation (Bryman & Bell, 2011; Miles &
Huberman, 1994). Thereafter, the empirical material was sent to the CEO and the Marketing
and Communications Manager of Urban Deli who confirmed and approved the material.
Recurring validation of the empirical material was therefore performed by Urban Deli
throughout the process and in the final stage, the conclusions were discussed with the CEO in
a follow-up interview. Hence, all transcripts and the empirical material can be considered
trustworthy and rightful reflections of the interview interactions (Miles & Huberman, 1994).
Further, we aimed at developing thick description by providing detailed information in regard
to the phenomenon retail mash-up and giving the different perspectives meaning (Geertz,
1973; Miles & Huberman, 1994), which consequently enhanced the transferability of the study
(Bryman & Bell, 2011).

Due to the novelty of retail mash-ups, we considered a detailed exploration of the

phenomenon to be of importance rather than statistical generalisability. Thus, an analytical
generalisability is considered appropriate and is highlighted rather than the more traditional
statistical generalisability (Easterby-Smith, Thorpe & Jackson, 2015; Miles & Huberman, 1994).
Dependability is touched upon earlier in this section and is enhanced through the accessibility
of our gathered empirical material (Saunders, Lewis & Thornhill, 2009). This makes it possible
for future researchers to take on a similar role if they are to explore a similar phenomenon or
setting (Bryman & Bell, 2011; Miles & Huberman, 1994). Lastly, we are aware that we cannot
be considered entirely objective, but we have focused on creating an awareness of our
position as researchers and disregarding our personal opinions and previous assumptions

37
about Urban Deli and retail mash-ups in order to improve the study’s confirmability and
reflexivity (Alvesson, Hardy & Harley, 2008; Bryman & Bell, 2011; Miles & Huberman, 1994).

We have also used Urban Deli’s marketing communication material and hence, criteria for
evaluating the quality of secondary empirical material need to be taken into consideration:
authenticity, credibility, representativeness and meaning (Bryman & Bell, 2011). Since Urban
Deli is both creator and source of the material, we believe the authenticity and credibility to
be high. Further, we aspired to include as representative material as possible by exploring
marketing communication material in several channels and thereafter choose typical
examples (Bryman & Bell, 2011). Finally, throughout this study, we have aspired to show the
importance of why it may be interesting to consider Urban Deli’s marketing communication
material in order to explore retail mash-ups and thereby, show its meaning (Bryman & Bell,
2011).

3.5 Ethical Considerations

With respect to the interviewees, and to encourage an honest conversation, we chose to

provide the interviewees with anonymity and no names are included in this thesis (Easterby-
Smith, Thorpe & Jackson, 2015; Saunders, Lewis & Thornhill, 2009). However, the name of the
explored organisation in this thesis, Urban Deli, as well as the interviewees’ positions are
revealed in agreement with the CEO, due to the relevance to the researched phenomenon
(Easterby-Smith, Thorpe & Jackson, 2015). Moreover, in the beginning of each interview, we
asked the interviewees for permission to record the conversations (Bryman & Bell, 2011). In
regard to the visual empirical material, we took pictures within Urban Deli’s facilities in order
to portray the physical store atmosphere which is an essential part of this research of retail
mash-ups and hence important to include for an authentic study (Bryman & Bell, 2011). We
are aware of the ethical problems associated with taking photographs which to some extent
includes guests and employees of Urban Deli. Nevertheless, to reduce potential harm for all
consumers as well as employees, we have chosen pictures which do not portray any faces
(Bryman & Bell, 2011; Easterby-Smith, Thorpe & Jackson, 2015). Additionally, Urban Deli has
an abundance of guests and to ensure informed consent for all consumers would not be
practical (Bryman & Bell, 2011; Saunders, Lewis & Thornhill, 2009), nor do we consider this
necessary since focus was on the store atmosphere and not the consumers per se or their
behaviour. Further, since consumers’ actions at Urban Deli represent everyday behaviour and
not sensitive situations, we believe that this is a sufficient level of confidentiality (Bryman &
Bell, 2011).

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4 Empirical Material
The following chapter contains our primary and secondary empirical material. Firstly, Urban
Deli is introduced followed by a presentation of the primary empirical material which is created
from interviews with Urban Deli employees and an observation of Urban Deli’s physical
atmosphere. The primary empirical material from the interviews is presented with quotes and
the observation with pictures to demonstrate the findings in an illustrative way. Secondly, the
secondary empirical material is presented, based on an observation of Urban Deli’s marketing
communication material. The material is gathered from websites as well as social media
accounts on Instagram and Facebook, and pictures are provided to illustrate the material
further.

4.1 Introduction of Urban Deli

Urban Deli is a Swedish retailer known for mixing different formats; restaurant, rooftop bar,
café, hotel, delicacy store and grocery store. Today, Urban Deli has five units located in
Stockholm: Nytorget, Sickla, Sveavägen, Central Station and Åhléns City, which are slightly
different in their offering and thus attract different types of customers. The first unit opened
in 2009 at Nytorget, Södermalm and the clientele consists of a mixture of locals, designers,
celebrities, food enthusiasts and hedonists (Urban Deli, 2018a). At Nytorget, breakfast, lunch
and dinner are served in the restaurant and the customers can also shop in the connected
delicacy and grocery store. During weekends you can eat brunch here, and the evenings are
characterised by a vibrant atmosphere (Urban Deli, 2018a). At Urban Deli Sickla, the mix of
formats is the same as at Nytorget, namely restaurant, delicacy and grocery store. Due to its
location, the weekday lunch hours are the most intensive periods where professionals working
in the area are frequent visitors. In the evenings and weekends, the atmosphere is calmer and
more family oriented. Urban Deli Sveavägen opened in 2015 and is the largest unit so far. Here
one can find a rooftop bar, café, lounge, catering services, conference facilities and a hotel in
addition to the other parts of Urban Deli. The hotel is a separate company, Hotel With, which
has 106 rooms situated underground, and is characterised by a modern design and ‘no
disturbing sunlight’ (Hotel With Urban Deli, 2018a). The remaining two units are smaller
versions which do not contain a full-scale restaurant or store part. Urban Deli Åhléns City
opened in October 2017 and focuses on vegetarian food. Here, breakfast and lunch are served
in addition to offering the customers pre-prepared dinner solutions. The newest addition to
the Urban Deli family is the unit at Stockholm Central Station which opened in April 2018.
Here, customers can find ready-to-eat salads and a small grocery store with selected products
from Urban Deli’s good-to-go assortment.

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Urban Deli is partly owned by the grocery concern Axfood, which bought 50 % of the company
in 2014 (Axfood, 2018). Urban Deli has around 400 employees in total, out of which 120 are
stationed at the largest unit Sveavägen. The company aims to offer their customers a unique
and memorable experience by striving towards the vision “making the food life easier, better
and happier” (Urban Deli, 2018a). Important focus areas which permeate all operations are
that products are produced in a way which is good for people, animals, the climate and
environment, and to minimise unnecessary waste through making use of products throughout
all parts of the business. Another important aspect at Urban Deli is diversity, which is reflected
in personnel, menu and store assortment. Connected to the focus areas of sustainability and
diversity is the aspiration to be an innovator when it comes to food of the future by testing
new products and ways of working, inspiring others to follow the process (Urban Deli, 2018d).
In addition to offering customers Urban Deli’s products in the five locations, these can be
found on the online platform mat.se, which is owned by Axfood as well.

4.2 Interviews with Urban Deli Employees

4.2.1 Managing a Retail Mash-Up

The founders of Urban Deli started the company as a response to what they perceived was
missing in the retail landscape, an integration of restaurant and store in the same place where
grocery shopping could be as fun as going out for dinner. In this place, traditional elements
from one part can be applied in another, for example by designing the store based on feelings
normally created in a restaurant. As explained by the CEO, in an era of digitalisation, Urban
Deli moves in the opposite direction by going back to the analogue which makes the physical
place an exciting and increasingly important meeting place through a mash-up concept. When
asked about what Urban Deli as a retail mash-up is, the interviewees highlighted the basic idea
behind the concept, which is to create a welcoming meeting place focused on food and
lifestyle in a time where people are stressed and have limited time, but still want quality. The
vision of Urban Deli is “making the food life easier, better and happier”, and as indicated
throughout the interviews, a large focus area is to facilitate the everyday life of their
customers. This is achieved for example by focusing on meal solutions and offering many
different services and products by integrating the different parts of Urban Deli under the same
roof. The hotel CEO said: “I think we attract the visitors of tomorrow which are looking for a
lifestyle product, since we have thought about everything from health, sleep and lifestyle”.
Urban Deli’s concept also encourages people to spend more money in the same place, since
guests staying in the hotel may shop in the store and eat lunch in the restaurant which is a
benefit of a retail mash-up format. An example of how Urban Deli can use their concept to
make life easier for their customers is explained by the hotel CEO:

40
 It is much about facilitating the everyday life for our hotel guests. If it is raining
outside, they can check Urban Deli’s lunch menu and make a booking directly via
the TV in their room.

Uniting the different parts into a whole is what makes Urban Deli’s offer unique, and it was
explained to us that it is very important that there is a common theme throughout the
concept. The core in a retail mash-up is to stay innovative, focus on service and meetings, as
described by several interviewees. The Marketing and Communications Manager said:

Our mash-up format provides opportunities to try out new things in a different
way, and thus create a whole new and surprising experience […] we can produce
a beer that we sell in the store but also in the restaurant, we can try out many
different things and implement them in different parts to see whether it works
or not.

Another feature of a retail mash-up as explained by the Store Manager is the opportunity for
a niched offering, as exemplified in the store where Urban Deli has chosen a limited range of
products, offering customers guidance and thus making the shopping process easier and more
time-efficient. The mix of the different parts of Urban Deli is further described by the Head
Waiter as a fun, exciting and a different concept which creates a sense of togetherness and
the physical place thus becomes a space where people want to spend their time. Additionally,
combining different formats as done by Urban Deli, creates a broader and different customer
offer, much due to the broad competence and experience of the personnel coming from
different backgrounds. For example, the Store Manager stated that bringing in people from a
restaurant background when planning the store environment might be beneficial since it
provides new perspectives and facilitates ‘thinking outside the box’. Another benefit with a
mash-up is that the same product may be offered in various parts, creating recognition among
the customers which was explained by the Store Manager:

I believe that a benefit in a hybrid format like ours is that the same product may
be offered throughout all parts and an example is our fish stew which we always
have on the menu and can be bought as a base in the store, as well as a prepped
meal ready to eat.

Organisation
To be able to successfully manage a retail mash-up with all its parts, an efficient and well-
functioning organisation is key as highlighted by the CEO. Urban Deli provides three main
units: Sveavägen, Nytorget and Sickla, which each has a restaurant manager, store manager
and hotel manager (only at Sveavägen), responsible for the different departments. The
managers within each unit meet on a weekly basis to ensure that important information is
shared between the departments. In addition, every unit has a general manager responsible

41
for the daily business of all areas in respective unit, to ensure that the same feeling is
communicated throughout the different parts such as restaurant, hotel, store and café. The
general manager is also responsible for encouraging the department managers to
communicate with each other and come up with ideas on what to do together. The general
managers keep in touch on a weekly basis to discuss how to achieve a similar feeling between
the different locations. In addition to this, there are central support functions such as
economy, marketing and IT. However as commented by the CEO, organising a mash-up like
Urban Deli, especially in an expansion phase, can be a challenge due to the different parts and
locations.

To coordinate all different parts within a unit can be challenging as highlighted by several of
the interviewees. This was exemplified by the General Manager when describing his position:
“I have a coordinating role, the department managers are often fully focused on their own
areas, and somewhere we want to tie it all together”. Another example is the fact the Urban
Deli and Hotel With Urban Deli are two different companies organisationally, but still want to
be perceived as one by the customers. This creates challenges in coordinating the operations
as well as internal communication, as explained by the interviewees representing Hotel With.
This is supported by the General Manager who explained Urban Deli’s concept by saying:

If the restaurant is just a restaurant, and the store is just a store, then we are not
Urban Deli. The whole point is that we are one unit and that we do marketing
activities together.

The Operations Manager at Hotel With explained that it is common that customers approach
the hotel reception with questions regarding information and activities for the restaurant or
store, and that it is vital to be able to answer these. One way of working with integrating these
parts is that the hotel posts photos on social media from the other parts such as the restaurant
to show a united image and a connection between the different parts. One cornerstone in the
Urban Deli organisation is the mind-set that all employees represent Urban Deli, no matter in
which department they work, which is an important focus area in order to create a united
approach and way of working. Another example is the catering and event function which is
somewhat separated from the daily business, but still needs to be coordinated in accordance
with the other departments since customers often make use of several parts, as explained by
the Sales Manager, responsible for catering and events. Thus, the logistics and coordination
of personnel is important, since an understanding of how consumers move between the
different parts is needed to make all of them feel seen and welcomed by the personnel. To
make sure that the same personnel can serve customers throughout the different parts is
therefore something which can be very beneficial but is still used to a rather small extent at
Urban Deli due to schedule technicalities.

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Coordination for Synergy Effects
To successfully coordinate the different departments may provide many benefits and synergy
effects for a retail mash-up like Urban Deli. To exemplify, the CEO explained ongoing efforts
to make use of soon-to-be expired, yet fresh raw products from the store in the restaurant,
gaining economic as well as sustainable benefits due to less waste and thus create an own
food cycle. The CEO continued with explaining:

One plus one may equal three when mixing different formats, since there are
constantly people present and 130 guests in the hotel means 130 breakfast
guests in the restaurant, who may also eat lunch or dinner there.

The fact that the different parts of Urban Deli can promote each other to the customers, for
example by explaining in the restaurant that the same products can be bought in the store,
also provides opportunities for up-selling and increased profits and was frequently mentioned
by the interviewees. When it comes to marketing activities, these can have synergy effects as
well, for example an influencer collaboration at the hotel can also work to indirectly promote
the other parts of Urban Deli. Another outcome of effective organisation are spill-over effects
which might be reached through coordinating the catering and event part with the restaurant.
The Sales Manager of Catering and Events explained the fact that Urban Deli is present at
corporate events might help them to become a top of the mind choice for customers when
going out for dinner or after work. This may also work the other way around, when visiting
the restaurant, the customers may realise they can also order catering from Urban Deli for
their next event which clearly illustrates the value of offering a wide range of services under
one roof as a mash-up retailer.

The Physical Store Atmosphere

The physical environment and atmosphere is very important for a mash-up retailer like Urban
Deli. There are many elements contributing to the experienced atmosphere, and during the
interviews, the personnel and personal service were frequently mentioned as the most
important factors for creating an attractive and welcoming feeling. Another important
aspect for the physical atmosphere is to think in new ways and continuously present novel,
fun and exciting news, as highlighted by the CEO. Further, the General Manager emphasised
the fact that music, interior design and lightning are important parts of creating the Urban
Deli atmosphere, and these should all fit with the offered product. These are also important
factors at the hotel, as expressed by the hotel CEO, where a large focus has been on creating
a cosy atmosphere by working with lightning, scents and art, which all fit with the atmosphere
of the other parts as well. To attain the right feeling and atmosphere across the different parts,
Urban Deli works in cooperation with an interior design company. When asked about the
characteristics of the Urban Deli atmosphere, the Store Manager said:

43
 From the beginning I think it has been a large focus on creating the atmosphere
through the interior design, for example by placing a big bar in the middle which
invites people to socialise. The music is also very loud, which is an active choice
since we want to create the right atmosphere by stimulating a feeling of ‘this is
where it all happens’.

Further, to get a coherent feeling throughout the different parts, the same music is played
everywhere. The Head Waiter explained how Urban Deli’s atmosphere is actively worked
upon by inviting DJs, arranging music quizzes and other events to get the right feeling. The
General Manager described the atmosphere at Urban Deli as vibrant and a bit messy since it
is not always obvious for the customers where to go, however this makes it possible for the
customer to have a look around and discover the different parts. Another important aspect of
the Urban Deli atmosphere is the focus on seasons clearly seen in the display of products in
the store which is also focused on novelty and continuous updates as explained by the Store
Manager. Further, the Urban Deli atmosphere was described as welcoming and diverse, and
a unique feature which adds to the relaxed atmosphere is the fact that the personnel do not
cover tattoos and piercings, as explained by the Sales Manager of Catering and Events, which
is uncommon in restaurants and at catering events. All together, these elements create a
relaxed place for meetings and socialising where everyone is welcome, as highlighted
throughout all the interviews.

Theme in Concept and Interior Design

Even though all parts of Urban Deli are important, the restaurant was frequently defined as
the most important one throughout the interviews and was described as the motor and the
hub, keeping it all together. The Marketing and Communications Manager stated that the
restaurant is what provides credibility and makes Urban Deli special. Further, the Sales
Manager of Catering and Events highlighted the fact that the atmosphere in the restaurant is
the core of the offer and the Store Manager usually describes Urban Deli as a restaurant that
has a store, thus assuming a restaurant perspective. When it comes to coordination of the
different departments, the interviewees often touched upon the fact that it is important to
have a common theme connecting all the different parts to provide a coherent atmosphere
and image for the customers. This is done in a number of different ways at Urban Deli, and an
example is that the whole concept builds upon an interest in food and beverages which unites
all parts. The Sales Manager of Catering and Events explained that the concept of Urban Deli
is based upon delivering a holistic food experience, and the food in the different parts shall
follow the same style, with a focus on quality. Together with the well-coordinated music and
entertainment, this creates a relaxed meeting place where people want to spend their time,
in accordance with Urban Deli’s vision as stated by the Marketing and Communications
Manager.

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The CEO said that Urban Deli has evolved into a lifestyle concept which has become part of
the brand identity. The Marketing and Communications Manager stated that important
factors are to stay ahead of trends and be innovative throughout the different parts and the
concept as a whole. One example of a strategic effort to connect all parts and create a
coherent image is by arranging theme weeks. The General Manager exemplified this by telling
us about the Spanish influenced week where tapas were served in the bar and the store had
an extended range of Spanish products, which was all jointly promoted. Throughout all
actions, efforts to include all parts are important to create a coherent image. Another example
is the fact that the meal is always in focus and the rest of the assortment is a complement to
the meal as explained by the Store Manager.

4.2.2 The Superior Customer Experience

Throughout the interviews, it became clear to us that a superior customer experience is the
heart and soul of Urban Deli and something which was highlighted by all interviewees. The
significance of providing an excellent customer experience was even one of the main reasons
for starting Urban Deli at the first place as mentioned by the CEO: “Since we are restaurant
guys, we discovered the dilemma that it is fun to go to a restaurant or bar but pretty boring
to go grocery shopping”. Thus, the idea was to stimulate the same feelings in a grocery store,
and the retail mash-up concept as a whole, as when you are a regular at a restaurant and to
increase the engagement to the same level by adding elements such as superior personal
service, physical aspects, atmospherics and events. Therefore, the emphasis on the
customers’ satisfaction and a more exciting experience was highlighted from the beginning
and part of the vision behind the company per se. The CEO further meant that providing ‘that
bit extra’ leads to a twofold advantage by pleasing and surprising consumers but at the same
time boost sales.

Retail Mash-Up as a Meeting Place

A common theme in all interviews was the description of Urban Deli as a meeting place with
a strong social focus as pointed out by the CEO: “I love to come here on the top days, like a
Friday, and see customers and personnel talking to each other. We are kind of like the modern
small country store” and the Operations Manager of the hotel “Our service is awesome, the
personal service […] I think that is what creates this success story, that we are so personal”. It
was also mentioned that the physical meeting place appears to be increasingly vital and
several interviewees argued that we are going back to the roots where personal meetings and
social aspects are desired even though we are in the middle of the digitalisation era. The hotel
CEO said: “People need some kind of belonging and community feeling […] You are
anonymous but still part of something, which gives you energy”. Social interactions are also
encouraged by Urban Deli by offering certain ‘community tables’ in the restaurant which
enable communication between guests as well, and not solely between personnel and
consumers. Moreover, one part of the provided customer experience at Urban Deli as a

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meeting place is based upon the created atmosphere. When entering the store, Urban Deli
wants something to be happening and all aspects are carefully considered with the
consumers’ needs and desires, conscious and unconscious, in mind. The goal is for the
consumers to feel “wow, this is not just any store” as stated by several interviewees. The
atmosphere should be experienced as pleasant, aesthetic and entertaining enough for
consumers to want to go to Urban Deli and hang out for a couple of hours. Hence, it is
important for Urban Deli to not be perceived as a pretentious place but as relaxed and easy-
going.

To hang out at Urban Deli and consider this location as a meeting place is also connected to
the convenience which according to the interviewees is a major part of what consumers
appreciate with the concept. In this retail mash-up, you as a consumer have easy access to all
parts of Urban Deli and as exemplified by the Operations Manager at the hotel: “You do not
even have to leave Urban Deli if you do not want to, you have everything here”. This is further
supported by the hotel CEO who stated that guests get positively surprised by being offered
all parts of the mash-up: “Wow […] This is amazing, I do not even have to leave Sveavägen
44”. By providing a complete lifestyle concept, the interviewees believed that a customer
experience out of the ordinary is developed. Therefore, this is something which might even
lead to a type of identity creation. Convenience as a part of an appreciated customer
experience is also exemplified with the large assortment of partly prepared mealtime
solutions which, through co-creation, facilitate the lives of stressed and time pressured
consumers.

The Importance of Being Welcoming and Inviting

In creating a positive customer experience in a retail mash-up, all interviewees pointed out
that it is essential to be welcoming and include everyone. As stated by the Operations
Manager at the hotel: “It is such a wonderful meeting place, where everyone is welcome.
Whatever you look like or whoever you are, you are welcome”. This is focused upon due to
the wide range of consumers who need to be met in different ways and offered various
aspects for a positive and engaging customer experience. To provide an appealing and
engaging customer experience for all types of consumers can be challenging and requires
balance and diversity. For example, it was exemplified by the General Manager and the Head
Waiter that visitors are strategically placed in the restaurant with their characteristics in mind.
In general, young consumers like to sit close to the bar and the DJ while the older clientele
appreciates a calmer surrounding and the two groups are therefore placed in different areas
for the happiest outcome and experience for everyone involved.

The wide range of consumers was repeatedly described by the interviewees and the clientele
appears to differ significantly depending on the day and time. During a week, Urban Deli meets
all types of guests such as families, business associates, groups of friends and older couples.
However, even though the clientele is rather diverse, a common image of the most

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stereotypical Urban Deli guest appeared to be a 30-45 year-old conscious professional, as
exemplified by the hotel CEO, the Operations Manager and the Store Manager. Additionally,
to be open-minded and welcoming towards all consumers is an aspect which the CEO stated
Urban Deli has been given much credit and appreciation for. These aspects are also reflected
in the choice to provide certain tables in the restaurant which are not bookable and hence,
further increase availability and the welcoming feeling.

The Personnel
Personal service and engaged personnel is key when it comes to the customer experience
which was strongly emphasised by all interviewees. Hence, this is something which is taken
seriously by the company and all personnel is educated and certified through the own service
programme ‘LUST’ which appears to be an appreciated guideline by the employees. LUST was
developed in order to create a consistent customer experience in relation to service-
mindedness and to mediate its vitality to all employees. This appears to be of extra importance
in a retail mash-up and it was described as an efficient way to create togetherness and similar
feelings across all parts. LUST is an abbreviation of the Swedish words: Lyft blicken och le,
Uppmärksamma gästen, Ställ en fråga and Ta chansen att erbjuda hela Urban Deli. This can be
translated into: Have a look around and smile, Pay attention to the guest, Ask a question and
Take the opportunity to offer all parts of Urban Deli, and is consequently the core of the
service programme. The programme was initiated to make the lowest level of service higher
and works as a philosophy rather than a script for the personnel. Additionally, most
interviewees pointed out the importance of making customers feel that they have been seen
but also that the personnel should guide people and provide suitable service which
consequently requires significant engagement.

Relationship Programme and Events

Urban Deli also focuses on the customer experience through their programme for regulars
which was described as a relationship rather than a loyalty programme. By being part of this,
regulars are prioritised when it comes to tickets for events and are given different offerings
and a newsletter sent with e-mail. Both the CEO and the Marketing and Communications
Manager highlighted that relationships are what matters in this programme and to become
friends with the consumers by offering something extra in terms of experience, rather than
financial returns as with many other retailers. Anyone can become part of the programme by
simply registering at the counter in the store without fulfilling any specific requirements or
demands.

As mentioned, there is an abundance of events in order to interact and engage with

consumers by providing entertainment but also education. What was seen recurrently during
the interviews, was the desire to offer exciting, new-thinking, fun and even a bit weird events
and subsequently create a special and memorable customer experience. Urban Deli provides
a broad range of different activities and events in order to meet the wide-spread clientele.
However, what is common for all happenings is the connection to food, beverages and

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lifestyle, concerning events for companies as well as consumers. Throughout the interviews,
events such as wine tasting, beer tasting, chocolate courses and pub quizzes were exemplified
as appreciated in-store events. Nevertheless, Urban Deli also arranges trips and events outside
of the facilities, such as fishing competitions, mushroom picking and visits to cow releases.
Regarding company events, these are primarily connected to the catering business.

In regard to entertaining and educating events arranged to strengthen the customer

experience, the importance of constant innovation was illuminated. Urban Deli wants to
present new, fun and surprising events, happenings and products, preferably before anyone
else. This was further exemplified by the Marketing and Communications Manager: “We want
to be market making, we want to be the innovator who comes up with new things” and the
CEO: “This is the place to experience new things first!”. Sometimes, events are taken one step
further and expanded into theme weeks with a series of events and the theme is also
integrated in the food and beverages at Urban Deli. Consequently, events and activities are
not only prioritised in the daily business but also part of bigger, occasional happenings.
Constant activation and development of happenings, preferably with a fun twist, is therefore
part of the core in relation to customer experience and have been from day one.

Since extraordinary and innovative events have been part of Urban Deli from the beginning,
this is now something which is expected by the consumers and part of the brand image. It has
generated great buzz throughout the years which constantly requires new ideas in order to
appeal to the consumers and live up to their expectations in order to avoid disappointment
and a bad customer experience. According to the CEO, this is faced by not following set
patterns or trends but by trying to be a forerunner through experiments. Additionally, the
Head Waiter and the hotel CEO talked about consumer feedback which is taken into
consideration and forwarded to the management in order to adjust and develop future
customer offerings and experience.

Lastly, we talked to all interviewees about technology and its potential impact on the
customer experience. Today, there appears to be limited focus on technology in relation to
the customer experience and events since convenience and personal service are prioritised.
However, the interviewees indicated that further technological development is part of an
ongoing discussion and the adoption of technological solutions to enhance the customer
experience may increase in the future.

4.2.3 Technology, Multichannel and Marketing Communication

Throughout the interviews, it was emphasised that Urban Deli is at the forefront in many areas
such as offering an exciting customer experience, new and innovative dishes and food
products. However, when it comes to technology, some parts of Urban Deli are in the start-
up phase of implementing technology while others are more advanced, for example with a

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digital queuing system for the rooftop bar. One factor which was frequently emphasised
during the interviews is that adopting technology might have a twofold effect, both a positive
one by facilitating the visit for the customer, but also a negative one since the personal
interaction and relation, which is vital for Urban Deli, might be lost. Regarding marketing
communication, Urban Deli’s efforts are focused on social media, which can be seen as an
extension of the brand to the online platforms.

Technology in The Physical Place

Regarding the implementation of technological solutions at Urban Deli, there are some
differences between the different parts. Both in the store and the restaurant, limited
technology is to be found, while the hotel part is more advanced. The General Manager and
the Head Waiter explained that in the restaurant, personal interaction and service are vital
elements, and technology is therefore not a main focus in this part of the concept. Urban Deli
has previously provided a self-checkout station in the store but decided to remove it, however,
it is currently under discussion whether this should be reinstalled. The General Manager said:

When it comes to self-service technology it can be a bit contradictory since we

focus on the customer meeting, however, we have such intensive periods […]
when people have about 30 minutes to buy and eat their lunch, maybe the best
service that can be offered then is to let them skip the interaction with
personnel.

The Store Manager agreed with this claim and said that especially during lunch hours, a self-
checkout station could be a good option to enhance the customer experience by helping the
customers save time and reduce queues in store. However, as highlighted by several of the
interviewees, even if a self-checkout station would be installed, it is still paramount to have
personnel present at all times which can assist consumers when needed, to not entirely loose
the personal interaction and opportunities for up-selling. As can be summarised, a mix of
personal interaction and technology is needed, and a suitable balance should be established.

One area which Urban Deli is currently investigating is to expand the use of different app-
solutions that can be used to pre-order and pay orders, which then can be easily picked up
and thus save time for the consumer. This solution has already been implemented at the new
unit at Stockholm central station, offering time-stressed travellers to pre-order and pick up
their food to increase speed and availability. Further, the General Manager and the Store
Manager explained that similar solutions might be introduced in other parts as well in the
future to optimise the operations. One app that is currently used is Karma, where customers
can shop expiring food to a reduced price, which decreases waste and is thus beneficial from
a sustainability perspective as well, as stated by the Store Manager.

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As previously mentioned, Hotel With is aiming to make life easier for guests by adopting
technological solutions. However, as explained by the hotel CEO, the hotel has adapted their
implementation of technology in order to keep the personal interaction with the guests but
also to not risk a mismatch with the other parts. Some examples of technological features
which can be found in the hotel part are a self-service check-in/out station, lunch reservations
via the TV, charging plates for cell phones on bedside tables, advanced audio systems, a wide
selection of TV channels and the possibility to stream to the TV.

E-Commerce
Due to the fact that Urban Deli is a small actor with a limited assortment compared to
competitors such as Coop and ICA, new ways and strategies of selling online need to be
implemented to attract customers, as stated by the General Manager. The CEO said that he
would like to see Urban Deli do something different and fun when it comes to e-commerce,
which makes the customer more engaged and keeps the personal interaction even though the
customer shops online. In accordance with trends within the retail sector, opportunities for
pre-ordering and paying online is also under investigation as stated by several of the
interviewees. However, a balance needs to be established where Urban Deli simplifies the
customers’ lives but still keeps the important relationship and experience as stated by the
CEO. Despite ongoing efforts to develop an e-commerce strategy, the Marketing and
Communications Manager explained that due to Urban Deli’s unique concept, e-commerce is
necessarily not a large threat:

I am not sure that we will be affected of e-commerce to such a large extent […]
since we are something else. I think that we need to adjust our assortment to be
even more special, something you need to shop and experience at the physical
store. We need to find our way, what should we offer online?

The Marketing and Communications Manager explained that efforts of adopting e-commerce
have earlier been implemented connected to holiday seasons such as Christmas, New Year’s
and Easter, when customers could pre-order food. The results of these efforts varied, and it is
in an ongoing work to get it right since there is large potential and benefits to be gained in this
online segment. Today, Urban Deli’s products can be found at the site mat.se (which is owned
by Axfood, part-owner of Urban Deli) and Convini (“food at work”). However, since Urban Deli
is in the start-up phase when it comes to e-commerce, this is described by the Marketing and
Communications Manager as a constant trial-and-error process and thus an area of
development.

Marketing Communication
In addition to selling Urban Deli’s products online, the digital forum is important in order to
meet customers, create visibility and for promotional purposes. According to the Marketing
and Communications Manager, the most important channels of promotion for Urban Deli are
the webpage, on which the most frequently visited section is the menus, and the newsletter

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which is sent out to regulars and other subscribers every second week. As exemplified by the
General Manager, a link is sometimes included in the newsletter which offers a discount for
reservations, in addition to special offers of selected products. The relationship programme
for regulars is also an important promotional tool and was described by the CEO as a
programme aiming at doing new and exciting things, not just offering discounts and paybacks.

Social Media
Urban Deli has recently made the decision to stop using traditional media such as print
advertising. Instead, the company is focusing on social media which is an important marketing
communication tool better suited for reaching their target group. The main focus is on
Instagram, where posts are of mixed character and portray food, drinks and current
happenings, in addition to job adverts, press releases and news. The General Manager said:
“We post everything primarily on Instagram, which becomes like a collage of all our offerings”,
and the Marketing and Communications Manager explained that it is important to find a
balance between being a cool restaurant and an available store. Further, it is often the
personnel and not the marketing department that updates the Instagram feed and story with
photos of what is currently going on at Urban Deli. This is motivated by a desire to give a more
personal and authentic feeling, which also generates more likes than pre-designed content.
The Marketing and Communications Manager said: “We do not want it to be corporate in any
way, we hope that people want to follow us because our feed is relaxed and personal and
nothing else”. The choice of using Instagram as the main media for marketing communication
is also based on practical reasons, such as ease of use, and each location has its own account,
making it even more personalised. Facebook is used as well but to a limited extent since this
platform is a bit more complicated, and thus only some content such as job adverts and special
happenings are posted there. However, the Marketing and Communications Manager pointed
out the fact that people can rate Urban Deli on Facebook, and this is consequently an
important platform to work with as well.

Influencer Marketing
Currently, influencer marketing on Instagram is a focus area for the hotel part which can be a
fairly cheap and very effective marketing tool if done right, as stated by the hotel’s Operations
Manager. As explained by the hotel CEO, this has been an important tool in successfully
building the brand from the start. According to interviewees, influencers are carefully chosen
based on suitability and fit with concept, image and guests. Further, the chosen influencers
must have a large number of followers to ensure desired reach. In connection to
collaborations with influencers, events such as clothes selling days and parties have been
arranged in the hotel part. Using influencers makes the marketing more personal and the
benefit of influencer marketing was described by the hotel’s Operations Manager: “There is
nothing as efficient as influencer marketing, it is all about understanding the little twist to be
successful and to stay relevant”. Unlike the hotel, the remaining parts of Urban Deli do not
currently work with influencers as a marketing tool, which was motivated by the fact that
some parts are more well-known and different channels are therefore more or less suitable.

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However, it was also emphasised that usage of different channels and their priority may
change in the future.

Events
Events are arranged by the different parts of Urban Deli, such as restaurant and store, catering
and hotel. Events are used as a long-term brand building activity, which can strengthen the
customer experience by being personal and doing something extra, thus creating loyal
customers and positive word-of-mouth, as explained and exemplified by the Marketing and
Communications Manager:

You do not go to a chocolate tasting event at a traditional store or restaurant,

which provides us with a unique opportunity to offer something different that
not even restaurants do today.

In addition to the events arranged for customers and influencers, Urban Deli also works with
events by targeting companies. The Sales Manager of Catering and Events explained that these
events aim to present the catering menu and conference rooms, in addition to product
launches and breakfast seminars. Even though events are primarily promoting one part of
Urban Deli, they can be characterised by cooperation between the different parts. For
example, when launching new products, events are arranged across parts which promote the
entire company and build a shared brand.

A Consistent Image
When asked if they consider Urban Deli to offer a consistent experience and image across
channels such as the physical place, social media and webpage, the interviewees had different
opinions. The CEO said: “No I do not think so [...] We are trying to make the best out of what
we have, but what we have today is not optimal”. However, most of the interviewees
considered the communicated brand image to be coherent with the perceived identity, which
can be exemplified by the General Manager:

I think that our webpage and social media channels are coherent with our store.
For example, we have some close collaborations that we happily post on social
media which I think show that our personnel are educated and know which
products they are working with.

Further, the interviewees agreed that the communicated visual image and graphical design
are coherent with the rest of Urban Deli and give are relaxed impression. The Marketing and
Communications Manager said: “We often get feedback from customers such as, your
communication is so cool […] its well performed, yet a bit mischievous”. The Marketing and
Communications Manager continued by explaining that a large contributing factor to why
Urban Deli has been successful in communicating their brand identity is letting the personnel
post on social media to achieve a more genuine and authentic feeling throughout the

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communication, which goes in line with Urban Deli’s hip and relaxed image. However, the CEO
and the Marketing and Communications Manager highlighted that this is an area of
improvement as well, especially the webpage. The CEO said: “I want the webpage to be more
simple, alive and topical […] a little more movement and inspiration”.

4.2.4 Managerial Challenges

All retailers experience various challenges when it comes to managing their businesses, yet a
retail mash-up might lead to additional challenges and difficulties due to the hybrid format
and the need to take several parts into consideration. These challenges might not be apparent
from the outside but as the business starts to grow, the challenging aspects appear in addition
to the positive aspects. This was exemplified by the CEO in regard to the start-up phase of
Urban Deli:

We had restaurants and a soup factory, so we began to develop a lot of opinions

regarding the grocery retail sector and when you observe from the outside, it is
very easy to judge, until you are doing it yourself. That is when you realise that
it is super complicated, that is when we started trying to combine a restaurant
and grocery store and create a meeting place.

Coordination of a Retail Mash-Up

A rather obvious challenge for a retail mash-up is the coordination and cooperation between
the different parts in the hybrid for a functioning daily business. Due to its size and integration
of different retail formats, there is a large workforce at Urban Deli across the parts which
sometimes lead to challenges concerning communication and shared information between
parts as well as employees. Additionally, this means that there is a risk of information not
being shared among all parties in a correct way which might impact the risk of confusion as
well. To face the challenge of communication and information, Urban Deli holds meetings on
a weekly basis where information is shared between managers and subsequently to
employees of each part. The hotel’s Operations Manager said: ”We brief each other so that
we have the right information […] It gets divided sort of, between the departments, so this is
something we work with every day”.

To encourage coordination between parts, the hotel’s Operations Manager highlighted the
importance of cross training in order to increase the understanding of each other’s work and
said: “By doing so, you have a completely different team spirit and what we as employees feel
is also perceived by the consumer”. It is further mentioned that the focus on the customer
experience and events within the retail mash-up contribute to a shared feeling of
responsibility and togetherness within Urban Deli. Additionally, this strengthens the clarity of
the coordination of the different parts from the consumers’ viewpoint. For example, when
special events such as theme weeks have been implemented, this is most often reflected in

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all parts which require coordination and shared strategies and efforts. The General Manager
exemplified with: “Some actions are focused on one part specifically, but of course we aim at
not excluding the remaining parts”.

It is also evident that there is room for future improvement in regard to coordination between
different parts, when the relationship programme and its card is described by the General
Manager. Today, there are different point-of-sale systems in the store and restaurant which
are not compatible. Hence, this leads to challenges in regard to measurement of consumer
activity, such as frequency of visits, and it is a complicated process to combine the two which
consequently leads to limited usage of consumer data. However, this is something which
Urban Deli wants to develop and work more with in the future since it becomes increasingly
important to be familiar with your customers’ behaviour, as discussed by the General
Manager. Finally, for Urban Deli, coordination and cooperation with the part-owner Axfood is
another aspect to take into consideration to ensure that all parties are satisfied. The
relationship between the two is described as an ongoing dialogue which develops the business
further and Urban Deli representatives appear to value this relationship and the associated
opportunities, both in relation to resources and knowledge. The CEO said: “We have a great
dynamic; the relationship leads to the better”.

The Risk of Confusion

A retail mash-up faces the risk of confusion from consumers due to its many offerings and
several parts, as exemplified by the CEO: “For good and for bad, you might not understand
straight away what this is” and the Marketing and Communications Manager: “On a market
where everyone knows the rules, you might think “what is this?” […] So, there may be an
ambiguity in what we are”. However, the same slight confusion is also argued to be an
advantage of the retail mash-up since a reaction of surprise and desire of exploration is
encouraged. The General Manager said:

We do not want the guests to be confused […] but it also gives them the
opportunity to have a look around, see the business and sooner or later they will
notice the Head Waiter, it may be more relaxed when it is less formal.

Further, the CEO explained that the atmosphere as well as the personnel are efficient tools to
handle possible confusion and transform these feelings into positive rather than a negative
aspects or insecurity.

Employee Turnover and Competence

A major challenge was identified in regard to the personnel which was touched upon by the
majority of the interviewees. This discussion concerning the personnel took two directions
during the interviews, either focusing on the employee turnover or personnel competence.

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First of all, a retail mash-up requires a larger workforce due to several parts with different
operations. For Urban Deli, this is also needed because of generous opening hours which
comes with the combination of retail formats and being a meeting place rather than a
traditional store, restaurant or hotel. The hotel is staffed 24 hours a day and the remaining
parts are open between 7am and 11pm Sunday to Tuesday, and 7am to 1am Wednesday to
Saturday. Additionally, this creates a specific issue for the store that cannot offer employees’
salaries in accordance with typical store agreements since it has to be considered a restaurant
due to the generous opening hours, which sometimes is challenging in recruitment processes.
Further, several interviewees said that people do not want to work in the same traditional
way anymore which makes it hard to recruit personnel in the long term. Therefore, there is a
high employee turnover which leads to high personnel costs. Today, the personnel at Urban
Deli is, to a large extent, young people who consider the position rather temporary and
therefore, there is a risk of lack of dedication. It was exemplified by the Marketing and
Communications Manager that, in general, many of the young employees stay for less than a
year before they move on or choose to travel instead.

It was also acknowledged by several interviewees, that it is very hard in general to recruit
personnel within this industry in Stockholm. Nevertheless, as stated by the Marketing and
Communications Manager, due to its popularity and strong brand image, Urban Deli is not
short of personnel but have a high number of applicants. However, the workforce can look
very different in a rather short amount of time due to the high turnover rate. This was further
exemplified by the Store Manager who said the following in regard to changes of personnel in
the store since it opened in 2015: “We have changed all personnel probably around three or
four times. Since a year back, I have two who is still part of the group and we are around 15
people”. Apart from high costs, a large workforce and high employee turnover also lead to
challenges in terms of personnel competence and the education of employees as exemplified
by the Head Waiter:

Since there is a lot of people who work here, it is really about making everyone
understand and pull in the same direction […] In the end, you grow into one, but
it takes time since it is so big. I have worked at smaller places before and it is
faster then, it is easier.

Several interviewees expressed the difficulty of finding a balance and the right amount of
education, time and money, which should be spent on employees since the right competence
and service-mindedness is vital for Urban Deli’s unique retail format. This was further
supported by the hotel CEO who also emphasised that leadership is an important feature in
addition to internal education and said:

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 It is a young target group who wants to work at Urban Deli since it is cool, but
they still have to perform at a certain level and that level will be achieved if you
have someone who shows the way.

However, at the same time, it was indicated that the process of education cannot be too
extensive since they repeatedly need to start over due to the high employee turnover which
is neither profitable nor feasible in the long run. The Marketing and Communications Manager
said: “It is very hard; how much should you educate when people leave within a few months?
That is a hard one”. Education is highly valued at Urban Deli since they want to ensure the
superior customer experience which is connected to the brand and to a large extent achieved
through the personnel and excellent service. Consequently, education is vital, but the
personnel should also possess the right characteristics and competence from the beginning in
order to being able to perform in accordance with the idea and values behind Urban Deli. For
example, since focus lays on the service and relations, the employees should be able to guide
the consumers throughout the Urban Deli experience and usage of the different formats.

The difficulties of finding the right personnel, both in regard to competence and the fact that
they will stay with the company, is also said to put high pressure on Urban Deli, the CEO said:
“[…] It leads to requirements of extreme clarity on who we should be and how we work with
the brand”. This is further strengthened by the General Manager: “We talk a lot about how
we can attract new personnel, why one should want to work at Urban Deli and what kind of
employer we are”.

Implementation of Technological Solutions

Technological solutions were described as an ongoing discussion and how these aspects will
develop further is yet to be discovered. Common feelings among the interviewees appeared
to be insecurity and decision-agony when it comes to the usage of technology. During the
conversations, positive as well as negative factors in relation to technology both in-store and
online were discussed but for the time being, the interviewees had a hard time to identify
what is the right thing to do and to what extent potential technological solutions should be
implemented. It appeared to be a question of balance as exemplified by several employees
since Urban Deli is a meeting place with significant focus on the customer experience and
personal service. The General Manager said the following in regard to in-store self-service
technology: “It might be a bit contradictory since we are focusing on the meeting with the
consumers, but on the other hand, people are so stressed […]. A mix might be the best
solution”. To put focus on a mix of technological solutions and personal service was further
highlighted by the Head Waiter:

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 You lose some with it (technology), such as the conversation with the guest and
so on […] It would absolutely work here but as long as there are people running
around and helping the customers too. So, it does not become some kind of
machinery, but some kind of mix.

Several interviewees expressed a concern that technology would decrease the focus on and
the importance of personal relationships which is the core of the business and therefore harm
the brand and business overall. Nevertheless, Urban Deli is always open for improvement and
innovation which may lead to trials of different technological solutions in the near future. The
CEO said the following in relation to technological development within the retail mash-up:
“One will be forced to try as everyone else and experiment. One has to constantly try in order
to not be in danger” and “The digital forum is very important as well as our presence there
and that is it integrated”.

Adaptation of Offering
As mentioned earlier, Urban Deli has a broad clientele due to the retail mash-up format and
the inviting and welcoming approach. Even though this reflects one of the main advantages
and a beneficial aspect of the business, it also develops into a challenge since there is an
abundance of needs and desires to please. Hence, a mix and balance of offerings is needed
which meets the wants of consumers willing to spend 600 SEK on a dinner but also the ones
who just want to take a drink in the bar, as exemplified by the General Manager. The
adaptation is not only limited to products and price but is also mentioned in relation to the
atmosphere which is perceived differently, depending on the customer profile, as exemplified
by the Head Waiter: “Everyone have different tastes and just because we have so many guests
here, it is hard to please everyone to 100 %, it might clash a bit” and the hotel CEO:

It is about balance, and it has been a few clashes through the years which is not
surprising […] At the same time, I think that is something you have to accept
since there is a lot of other people who might think it is cool. You cannot please
everyone.

Hence, it is sometimes hard to adapt in accordance with all consumers’ wants and needs, and
one needs to constantly strive towards a balance.

Constant Development
Urban Deli has positioned themselves by being a forerunner and innovator by constantly keep
developing both in regard to assortment, atmosphere and concept. Thus, a challenge can be
identified in regard to staying in this position, as mentioned by the Head Waiter: “The
challenge is to be a forerunner and to be the best, to continue to be one step ahead, that is
the real challenge” and the hotel CEO: “We cannot think we are done”. Further, when Urban
Deli opened up its first unit, Nytorget, in 2009, they were unique with this mixed format which
represents a retail mash-up but today, more competitors are entering the scene. However,

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this is something which was indicated to be considered a positive aspect which might lead to
a change of consumer behaviour and was exemplified by the Head Waiter:

I think it is a good thing and that we can help each other even though it is other
companies. I think it contributes to us being able to reach out to more people.

This aspect can be related to the identified challenge of having many different competitors
due to the mix of retail formats which makes traditional hotels, grocery stores and restaurants
competitors. However, this is simultaneously explained as one of Urban Deli’s main
advantages. They compete with an abundance of companies but at the same time, they are
unique with the combination of providing all parts in one concept. The Marketing and
Communications Manager said: “I think we are unique as a whole, but all our parts are
competing with something and that is challenging” and “We are competitors to all possible
actors on the market and that is why they feel a bit threatened by us”.

4.2.5 Retail Innovation and Future

To be a Market Maker
Throughout all interviews, one aspect was frequently brought up and its importance became
clear to us early on, namely innovation. The CEO said: “We want to be at the forefront and a
market maker […] that is actually a really important part of the concept”. All interviewees
discussed the vitality of constant development and to never stop innovating and thinking in
new, experimental, surprising and fairly twisted ways. Mixing different offerings appears to
lead to more room for development and experiments due to the fact that there is a limited
amount of existing retail mash-ups and consequently no rules on what is to be done have been
established, which encourages innovation. It was indicated that to be a retail mash-up
provides never-ending opportunities in regard to this and possibilities which are not always
present for more traditional retailers, as explained by the Marketing and Communications
Manager when talking about being a retail mash-up:

It gives us possibilities to try new things, it gives us possibilities to be innovative

[…] We can try an abundance of new things which we can implement in different
parts and see whether it is appreciated or not.

The majority of the interviewees highlighted that it is crucial to be at the forefront and a
market maker in order to stay interesting and attractive in the future as well. The pressure on
Urban Deli to be innovative does not solely come from internal forces and an aspiration to be
unique in that sense, but also from external forces. For example, from competitors who visit
Urban Deli for inspiration which subsequently pushes them to take it one step further. The
Store Manager said: “The rest of this sector… they are here all the time to have a look, it is

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very obvious. Then, we need to come up with ways of being market leading” and the
Marketing and Communications Manager: “I think that a lot of retailers are catching up, I think
we need to take the next step”. The consumers are also considered external forces of constant
development and it was explained that due to consumers’ strong image of Urban Deli as being
new-thinking, the company needs to keep living up to these expectations.

The Future
Based on the majority of the interviews, we can see that innovation is a big part of Urban Deli’s
future as well. There is no doubt that this retail mash-up will keep experimenting in expected
but also rather unexpected ways. From all the interviewees which are responsible for different
parts and areas of the retail mash-up, we learned that innovation is a big part of the future
since there is a constant discussion on what to do next. The Marketing and Communications
Manager said: “We always have to be one step ahead, we need to develop our concept even
more”.

When discussing the future, the conversations usually took three main directions; expansions,
opportunities together with part-owner Axfood and product/service development. It was also
mentioned that an even more niched strategy might be beneficial in the future. The Marketing
and Communications Manager said: “I think we need to dare to niche even more in our
assortment due to competition, in order to stand out”. For example, they are currently
working on the fall’s theme and focus; the protein shift, which will take Urban Deli to the next
level in regard to vegetarianism, assortment and innovation. Nevertheless, competition and
similar retailers such as Eataly were generally not considered a threat but seen as an
opportunity to keep developing and stay alert. This was also expressed as a way of together
changing consumer behaviour and consequently something positive for all parties involved.
Moreover, as previously discussed, the implementation and development of technological
solutions as well as online platforms including e-commerce, are also parts of the strategic
discussion for the future.

When it comes to expansion, there are many different opportunities for Urban Deli. The strong
and popular brand makes it possible for the company to expand to new locations, both within
and outside of Stockholm. Another option discussed by the CEO could be to keep the
excitement around Urban Deli’s current units and instead focus on developing the existing
concept to become even better and possibly adding even more parts to the existing mash-up
format. The hotel part is also open for further expansion, as stated by the hotel’s Operations
Manager: “The vision and goal is to open up more hotels [...] the future looks bright!” and
exemplifies that the cooperation with Urban Deli could be extended to other locations, as well
as with other partners. However, one part cannot experiment and innovate in one direction,
and another one in the other way, but a shared theme and agreement is needed. This was
exemplified by the Sales Manager of Catering and Events who said the following in relation to
the catering business and the future:

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 In catering, there is an enormous potential, we have just touched a small part,
this is just the tip of the iceberg. It is about finding the right way but of course, it
has to go hand in hand with the daily business, that is always what might clash
when you have all these parts.

Lastly, the interviewees expressed the importance to keep the Urban Deli identity in order to
stay unique and not forget where they came from. One way of doing so is to continue to focus
on the experience, activities and events which is expected by the customers, the CEO said:
“This is something that will fall into place even more in 2018”.

4.3 Observation of Store Atmosphere

When entering Urban Deli, you are immediately faced with an abundance of impressions.
There is a lot going on, both concerning interior, noise and the people, there is a certain pace
which is present in all aspects. On the first floor which includes the grocery store, delicacy
store, café and restaurant, there is a rather high volume of music mixed with people talking
and clutter from coffee machines, cutlery and glasses. Additionally, one can detect a
consistent theme in regard to design and the same feelings are stimulated in all areas. It
became rather clear that this is not a coincidence, but the design elements as well as the music
appear to be carefully decided upon. Throughout this part, we will illustrate the atmosphere
in the store, hotel and restaurant, for more photos please see Appendix F.

Translation of picture to the right: “Here work lesbians, Muslims, Kurds, gays, Jews,
Africans, Asians, Swedes and many more. It works really well.”

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4.3.1 Grocery Store and Delicacy Store

Firstly, what stroke us was the tidiness and pedantic order which occurred in the store. All
shelves and hot spots are neatly organised, and one can hardly detect a single can or package
which is in the wrong place. It is clear that this is not your everyday, mainstream grocery store
but all store aspects depict a certain level of fanciness. Even though the store is small, it does
not feel crowded due to a smart store layout and use of space. The store is divided into small
departments which facilitate the avoidance of confusion although the space is small. One
department which stands out is the fruit and vegetables section which is more decorated than
the others. In line with the products, the fruit and vegetable department includes green
elements as well as climbing plants and fruit baskets for an outdoorsy and authentic feeling.
Moreover, all departments are easily located through clear signage. The signs are formed like
cubes, in various bright colours and include a soft lightening. Further, the delicacy part of the
store brings several smells into the store, including fresh fish which stimulates a feeling of
genuineness.

The atmosphere is pleasant, yet a bit rushed around lunch hours. The personnel are present,
attentive, and happy to have a conversation with the customers. When walking around in the
store, it became rather clear that this store has quite a few regulars who with confidence
walked between the shelves and talked with the personnel. Throughout the store, one notices
a recurring theme in both interior design and assortment, namely health and lifestyle more
than solely focusing on the food products per se.

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4.3.2 Hotel

The hotel reception is integrated with the café on the first floor and is therefore an area filled
with movement, people talking and music. The hotel itself is located further down the aisle
from the café and reception, and you take the elevator or the stairs to get there due to its
underground location. Hence, the hotel rooms do not have any windows and the hotel has
even positioned itself through the slogan “without disturbing sunlight”. The lounge and
corridors of the hotel provide a clean design but with a fun twist. The walls are covered with
art from The Museum of Photography (Fotografiska) in Stockholm and all doors to the rooms
are painted in different bright colours. There are 106 rooms in the hotel and we had the
opportunity to stay in one of these during our stay in Stockholm. The room was rather compact
but with all desired and necessary functions. It had a modern and trendy look, but also
contained smart solutions in order to take advantage of the space. In agreement with the
design of the hotel corridors and lounge, the room’s design is clean and up-to-date but with
some unexpected twists. The bed is surrounded by a frame in the shape of a house where the
wardrobe is enclosed. The lamps are industrially influenced, and the bedspread provides a
touch of colour. The bathroom goes in white with some black elements and gives a more
luxurious feeling whilst the room itself is more cool and modern. Overall, all factors within the
room mediate feelings of simplicity, quality and calm. Moreover, the room is equipped with
the latest technology and solutions such as sound- and media system and wireless charging
technology for your phone. The room is also well equipped with different lamps and lighting
solutions which is essential since the room does not let any sunlight in due to its location.

4.3.3 Restaurant and Bar

The restaurant is the heart of Urban Deli which is clearly conveyed through its central location
which makes it inevitable to miss, whatever part of Urban Deli you are in. The restaurant
shows a rather rough and rustic design which contributes to a relaxed and uncomplicated
atmosphere. The lamps are of industrial design and the colours are rather dark with a main
scale of colour with black, wood, dark green and petroleum regarding chairs, tables and

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elements in the bar. Here, as in the store and hotel, the well-coordinated interior design is
complemented by colourful and fun aesthetic elements such as art, wall paintings and signs.
Additionally, there is significant movement in the restaurant due to its central location both
when it comes to personnel and consumers who walk between the store, hotel and
restaurant, but also due to Urban Deli’s many exits, including one into the house itself which
is filled with offices. The music is loud and mixed with noise from cutlery, clinking glasses and
people interacting in the busy restaurant. Since we lived at Urban Deli for four days and ate in
the restaurant three times a day, we can conclude that the music differs with the time of the
day. From more soft and mellow music in the morning, followed by louder and more energetic
music during the pulsing lunch hours and finally even louder and more DJ-inspired in the
evenings as dinner turns into cocktail hours. The music together with being a very well-visited
restaurant create a rather private feeling even through the room is packed with people. You
have the possibility to get a small table and have a private conversation but at the same time,
the possibility to join one of the shared community tables or the bar if you feel like socialising.
There is room for everyone here which is reflected in the wide clientele a well.

4.4 Observation of Marketing Communication Material

Urban Deli focuses their marketing communication on online channels, such as webpage and
social media; Facebook and Instagram. The Urban Deli webpage and social media channels
are commonly visited by people in the ages between 25-45 years where the majority is women
(Marketing and Communications Manager, personal communication, 17 April 2018). The hotel
part has its own digital channels and the remaining parts share one. Therefore, in the following
section, a presentation of the above-mentioned marketing communication channels, for
Urban Deli and Hotel with Urban Deli respectively, will be presented. For more pictures, please
see Appendix G.

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4.4.1 Webpages

Urban Deli
Urban Deli has a common webpage for all locations and when visiting it, one is faced with a
menu containing tabs for the five different units. In addition, in the top menu, tabs for
reservations, catering and events, regulars and more information about Urban Deli, such as
vacant positions and sustainability work are found. When choosing a location, for example
Sveavägen, the visitor is directed to a page where opening hours, reservations, menus and
news can be found. A focus area throughout the webpage is to communicate what is new and
happening right now at that specific location. The webpage gives a playful and relaxed
impression due to the use and mix of bright colours which goes in line with the general
impression of the Urban Deli brand. The webpage is well-organised and easy to navigate,
however quite static due to no integration of moving and surprising elements such as videos
or sounds. The theme for the webpage seems to be simplicity and to be informative about
Urban Deli’s concept as well as news and happenings, and the most frequently visited part is
the menu (Marketing and Communications Manager, personal communication, 17 April
2018). The page is only available in Swedish.

Hotel With Urban Deli

When entering the Hotel With webpage, the visitor is faced with a main menu where one can
get contact details, information about upcoming events and about the other parts of Urban
Deli, FAQs, a tab for room booking and detailed room descriptions and current special offers.
When scrolling down on the first page you can read about the hotel and how it is combined
with the other parts of Urban Deli. Additionally, ideas and value propositions such as having
rooms without disturbing sunlight, the focus on technology and design are presented together
with illustrating photos. The distance to varying services are also presented, and all together
the homepage gives the visitor a quick overview on what is on offer. Further down, the latest
updates from the Instagram feed can be found, connecting the different platforms. When it
comes to the design of the page it gives a stylish and clean impression and the colours used
are mostly black, white and grey, and thus differ from Urban Deli’s webpage. The page
contains some interactive elements, for example rotating pictures of the rooms and facilitates,
and pop-up banners with messages such as “Interested in business deals? Join us for a
breakfast viewing of our rooms!”. This gives the reader an impression that the page comes to
life. Further, the page is easy to navigate, and available in both Swedish and English.

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4.4.2 Facebook

Urban Deli
Urban Deli has a common Facebook page for all five locations as well as an own page for each
unit. The common page has 11 592 followers and 11 905 likes (Urban Deli, 2018b). At Urban
Deli’s Facebook page updates on what is currently going on are posted, such as information
about events, job adverts and most recently an announcement that a new branch has been
opened at Stockholm central station, as can be seen in the photo below. The page is updated
around 1-2 times a week and the theme of the posts mainly follows the one which is used on
the webpage with bright colours and a fun twist. This provides a coherent overall impression
of the brand which is easy to recognise. On the Facebook page, customer reviews are posted
(in total 873 at the time of writing, April 2018), on which Urban Deli has an average rating of
4.3 out of 5 (Urban Deli, 2018b). The most commonly mentioned positive aspects are the
quality and taste of the food as well as friendly personnel, and the most negative are service
not living up to expectations and too loud music. Regarding the reviews and interaction with

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customers on Facebook, one fact that was noticed is that no customer reviews have been
replied to or liked in several months. Before that, some reviews were liked but single replies
to reviews have not been posted in more than a year.

Hotel With Urban Deli

The number of followers of the Hotel With Facebook page is 1190 and the page has been liked
by 1193 people. The total number of reviews is 88, and the average rating is 4.7 out of 5 (Hotel
With Urban Deli, 2018b). What is most frequently highlighted in the reviews are the stylish
and modern design and the helpful and friendly staff. The Facebook page has been
occasionally updated in the last couple of months, and the content of the posts is mainly
focused on special deals and re-postings of blog posts from influencers which have stayed at
the hotel. The interaction with guests in terms of replying to reviews is limited also for Hotel
With, since no reviews have been liked or replied to since July 2017. Overall, the page is not
frequently updated which indicates a focus on other channels such as Instagram.

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4.4.3 Instagram

Urban Deli
Each Urban Deli location has its own Instagram account. Urban Deli Sveavägen has 7176
followers and 1546 posts (Urban Deli, 2018c) and the page is updated on a daily basis. The
posts are mixed both regarding the different parts of the concept but also content-wise and
do not have any specific focus area. The posts provide information about happenings and
events, news and special offers in the store and photos depicting the current pulse and
atmosphere in the restaurant. In addition to the photos, the Instastory is frequently updated
with videos from Urban Deli, giving a personal and authentic feeling where one can stay
updated on what is happening right now. When scrolling through Urban Deli’s Instagram
account, one gets the feeling that a lot is going on and a fun a positive tone is provided
throughout the feed. Below, a couple of examples of posts from the store and restaurant are
provided to illustrate and exemplify Urban Deli’s Instagram communication.

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Hotel With Urban Deli
The Hotel With Instagram account is followed by 1064 people and has 311 posts (Hotel With
Urban Deli, 2018c). The feed is updated several times a week and contains a combination of
photos and videos from the hotel facilities and rooms, as well as other parts of Urban Deli in
order to integrate and promote the whole concept to the followers. Information on special
offers such as deals for Valentine’s day and Christmas, and combo packages for the hotel,
restaurant and a visit at the closely located SPA facility Sturebadet are provided. In addition,
updates from events held at the hotel such as parties and clothes sales, as well as photos of
influencers staying at the hotel are common features of the Instagram feed. These influencer
posts add a fancy and hip touch and a sense of glamour. All photos give a professional and
well thought out impression and compared to the Facebook page, the Instagram account of
Hotel With seems to be the main way tool for communication and promotion. Below, a couple
of examples from Hotel With’s Instagram account are provided, depicting the hotel facilities,
an influencer collaboration and a clothes selling event for bloggers which was held at Hotel
With.

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5 Analysis of Empirical Material
In the following chapter, we present an analysis of the empirical material collected through
interviews, observation of store atmosphere and observation of marketing communication
material. In order to facilitate the reader’s understanding, the same themes are used in the
analysis as in the previous chapter when the empirical material from interviews were
presented. The analysis is performed by connecting the empirical material with the literature
review as a starting point and is combined with a more abstract discussion due to the novelty
of the research phenomenon.

5.1 Managing a Retail Mash-Up

5.1.1 Mash-Up as a Retail Format

What we do see from exploring and analysing Urban Deli as a retail mash-up is the strong
connection to and dependence on innovation for the format to function, appeal to consumers
and stay profitable in the long run. As argued by Reinartz et al. (2011) as well as Sorescu et al.
(2011), constant innovation appears to be as natural as the operations per se and once a new
idea is implemented, the retail mash-up is already far ahead in the strategic planning for the
next one. Throughout the interviews, it was highlighted that as a retail mash-up, you can never
be pleased with what you got or have achieved so far, but it is all about constant development
in all parts of the business. This is an aspect which goes hand in hand with the needs of the
changing retail landscape and an increasing number of imitators and competitors which
consequently leads to a need for Urban Deli and other retail mash-ups to be one step ahead
in order to not lose their uniqueness, which appears to be what the consumers appreciate and
desire the most (Bäckström & Johansson, 2017; Rigby, 2011).

For a retail mash-up, the main innovation can be seen in the retail format as such even though
other aspects are evidently highly developed as well, such as activities and assortment as
suggested by Sorescu et al. (2011). We connect innovation regarding this retail format first
and foremost with the combination of several retail businesses, in this case; store, restaurant,
rooftop bar, café and hotel, which can be considered a way of including additional value-
adding aspects for competitive advantage as suggested by Reynolds et al. (2007). However,
one can detect that this innovation develops into other areas as well, such as activities and
assortment (Sorescu et al. 2011), since it appears that a domino effect emerges which
encourages constant innovation throughout the business as a whole, including all parts
equally. What we can add in this area, is the importance and influence of the entrepreneur
behind the business. At Urban Deli, innovation and a lack in current offerings in the market

69
were what triggered the business idea and creation of the company, as well as a desire to
come up with something completely new and surprising. The founders who have built up this
retail mash-up had the vision to make grocery shopping as fun as visiting a restaurant for
dinner or drinks. Thus, we see this as a strong focus on how rather than what products are
sold, which reflects a winning retail business model according to Sorescu et al. (2011).
Therefore, we could detect the actual operations in addition to innovation as two important
cornerstones in order to create a successful retail mash-up and a retail format with future
potential overall. Further, these aspects are well connected to Reynolds et al. (2007) who talks
about the dynamic behind a retail business model and format and subsequently, it needs to
be elaborated with time and the needs and desires of the surroundings in mind. We can see
that Urban Deli operates in accordance with this philosophy and they are currently working
strategically with many interesting projects which are not only suitable for the present time
but for the future and can therefore be considered to be one step ahead.

Moreover, the combination of several parts in a retail mash-up together with an innovative
mind-set have led to opportunities for synergy effects as a result of effective coordination.
The ability to use products in all parts and in different ways leads to golden opportunities for
up-selling, higher profits and strengthened brand image which are all appreciated aspects for
a retail business. Hence, it gives Urban Deli and other retail mash-ups the opportunity to
differentiate themselves further by standing out in regard to the retailing mix (Jain & Bagdare,
2009; Levy & Weitz, 2004) which consequently improves the consumer engagement (Sorescu
et al. 2011). Nevertheless, the innovative focus also leads to requirements of a well-
functioning organisation and coordination of the different parts in order to reach success and
not offer a confusing mix, which can be seen as a rather challenging balance. The interviewees
repeatedly expressed the organisation as paramount and that they work hard to build a solid
team and encourage communication. Hence, we consider internal communication as well as
internal branding to be important aspects which should be carefully considered in order to
manage the retail mash-up and its constant development successfully.

A retail mash-up can also be compared to other rather novel retail formats since they share
many characteristics, goals and visions, yet the implementation and results are different.
Further, the fairly intense innovation in the retail sector concerning retail formats during the
last two decades proves the future importance of the physical store (Hagberg, Jonson & Egels-
Zandén, 2017; Morse, 2011) and we consider the new formats as an answer to consumers’
continued desire of visiting a physical place. Moreover, it is possible to understand the retail
mash-up by considering our own explorations of Urban Deli and combine these with previous
knowledge of other new retail formats. As with flagship stores, pop-up stores and showrooms,
the retail mash-up has its main focus on consumer satisfaction (Jones, Comfort & Hillier, 2017;
Kozinets et al. 2002) by combining the parts into an exciting experience in regard to the retail
format and retailing mix. Consumers appear to be the key when it comes to innovation and
coming up with new retail formats of today, however the strategies behind the business

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models and way to the consumers’ hearts are what reflect the difference between these
formats. Hence, it appears that the future will be dominated by personal and experimental
retail formats in accordance with Jones, Comfort and Hillier (2017) as well as Kozinets et al.
(2002).

5.1.2 The Atmosphere at The Physical Place

Based on the empirical material, we have realised that the physical store atmosphere is an
essential aspect to consider and a big part of the foundation which signifies the operations of
a retail mash-up. The atmosphere is supposed to create an appealing surrounding and hence
reach the goal of building a meeting place and a relaxed area for hanging out. In order to
achieve this, many aspects of the atmosphere were highlighted as important such as interior
design, music, art and lightening, but the key was suggested to be a combination of these.
Thus, we can confirm the literature’s stated importance of both visual merchandising
elements and atmospherics (Alexander & Nobbs, 2016; Kent, 2007; Lea-Greenwood, 1998;
Spence et al. 2014). Further, what was highlighted as important is to provide guidance
between the parts of the retail mash-up in order to promote convenience and help the
consumers discover all parts which may lead to a higher profitability for the company
(Bäckström & Johansson, 2017; Goworek & McGoldrick, 2015). Hence, in order to reduce the
risk of confusion which might come with a retail mash-up and to make the consumers
understand that it is a single unit, Urban Deli works extensively with guiding the consumers
with colourful signage in addition to the personnel (Goworek & McGoldrick, 2015).

Regarding atmospherics, the importance of all five elements was highlighted by several
interviewees in agreement with Alexander and Nobbs (2016), Spence et al. (2014) and Yoon
(2013). The Urban Deli representatives emphasised the importance of having a consistent
theme in regard to these elements which in this case, we can see as clearly reflected in a
convenient, modern and clean ambience with some more surprising elements and colours
which make the atmosphere pop. The constant theme in regard to atmosphere also works as
a facilitator of perceiving the retail mash-up as one unit which appears to be necessary, at
least in this stage when the mash-up is still considered new and rather unexpected, and
guidance is consequently desired by the consumers. Sight is considered the most dominant
atmospheric element (Alexander & Nobbs, 2016; Yoon, 2013) and at Urban Deli this is a sense
which is highly stimulated through lightening solutions, art and the combination of colours in
addition to products and interior design which are carefully coordinated. We could also see a
mix of cold and warm colours in the different parts, where cold colours such as blue and green
with their calming effect were present in the restaurant whilst physically stimulating warm
colours such as red and yellow were more common in the store even though the store
contained cold colours as well (Bellizzi, Crowley & Hasty, 1983; Soars, 2009). Therefore, this
can be seen as a method to stimulate calmness, primarily in the restaurant, and consequently
make people feel comfortable and stay longer which would strengthen this retail mash-up as

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a meeting place. Further, the restaurant is considered the heart of the retail mash-up from
the interviewees’ perspective and it might therefore be even more important to encourage
relaxed feelings here. To have a part of the retail mash-up which is considered the core of the
business appears to be an important aspect and thus, something which may signify a retail
mash-up.

5.2 The Superior Customer Experience

As indicated throughout the empirical material, Urban Deli has a strong focus on innovation
in order to position themselves and stand out among the abundance of different competitors
in the Stockholm area (Pinto et al. 2017; Reinartz et al. 2011; Sorescu et al. 2011). Even though
retail mash-up is a rather uncommon format today, there is still a competitive surrounding
due to that all parts of Urban Deli are competing within their specific area as well as with other
new retail mash-ups. What became rather clear to us during the interviews, is the importance
of innovation in regard to providing a customer experience out of the ordinary. It did not
matter which representative of the company we talked to, they all highlighted a surprising
and extraordinary customer experience, and hence we could identify and explore the
influence and importance of marketing innovation at Urban Deli (Kotler & Keller, 2016).

In accordance with Pinto et al.’s (2017) view on marketing innovation, we can see people
visiting Urban Deli as co-creators of this special customer experience since value is jointly
developed, both when it comes to the events and in regard to the social interaction between
consumers and personnel. Further, the customer experience created from encouraging
entertainment, engagement and Urban Deli as a meeting place rather than a traditional
restaurant, hotel or store, appears to trigger hedonic feelings such as fun and enjoyment from
being a part of the Urban Deli experience (Pinto et al. 2017). Once again, this shows the close
connection between marketing innovation, the customer experience and a mash-up as Urban
Deli. Moreover, as touched upon in the literature review, Fuentes-Blasco et al. (2017)
presented support for a positive relationship between marketing innovation and consumer
value as well as positive word-of-mouth which can be confirmed in the case of a retail mash-
up. The interviews as well as our own observations and presence at Urban Deli led us to the
understanding that this retail mash-up indeed has a strong brand image and is generally very
positively perceived by consumers. We are aware of the fact that the interviewees’ view on
the matter can be biased due to their positions and potential feeling of loyalty against their
employer. However, due to our four-day long visit in combination with observations, we can
vouch for their viewpoint of Urban Deli as a popular and well-liked retail format and
consequently, we reduce the risk of delusion. Furthermore, just as Bäckström and Johansson
(2017) as well as Sorescu et al. (2011) stated, retailers cannot longer rely on previous
successful actions and presume consumer loyalty. Instead, novel ideas which challenge the

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existing business and customer experience need to be implemented, which is something that
was mediated in all interviews as a reason for why Urban Deli never stops experimenting with
new actions in order to give their customers something extra, unexpected and fun.

5.2.1 Retail Mash-Up as a Meeting Place

As discussed, to consider the retail mash-up as a meeting place is a highly valued aspect and
consequently, providing a superior customer experience goes hand in hand with personal
interaction and social aspects overall. This is something which importance is strongly
highlighted in Bláquez’s (2014) study that also identifies personal relationships as being of
extra importance in relation to hedonic products or services. As mentioned, we consider
hedonic aspects present in the case of Urban Deli’s offering due to the focus on something
more abstract beyond the products or services per se, such as feelings, engagement and
togetherness through a ‘we-ness’. Hence, even though their offering in many ways have
utilitarian meaning, the hedonic appear to be emphasised by consumers as well as personnel.
Therefore, it is not surprising that the social interactions and meetings are strongly focused
upon throughout all interviews. Subsequently, it is rather natural that Urban Deli dedicates a
large amount of resources to the personnel, both in regard to finances, education and
commitment. This is a strategy that is well connected to existing theory within the area which
clearly states the importance of social interaction and a relationship between personnel and
consumers in order to create positive value and an appreciated customer experience
(Bäckström & Johansson, 2017; Lemon & Verhoef, 2016; Lin & Liang, 2011; Russo Spena et al.
2012; Verhoef et al. 2009). Several of the interviewees described the concept as similar to a
traditional small country store where closeness and personal relationships are highly valued,
which is particularly reflected in the relationship programme and the focus on regulars.
Therefore, Urban Deli’s strategy can be considered to be in agreement with Bolton et al.
(2014) who argue that a company can be seen as a host with a mission to make their guests
feel like home. Nevertheless, this rather unique and intimate approach was indicated to be
increasingly challenging to sustain during growth and expansions which might require an even
more set strategy, as can be seen in the service programme LUST at Urban Deli.

Since personal meetings are valued and highlighted by all Urban Deli representatives and
hence a recurring theme in the interviews, one may detect a community focus where the
physical place is essential in order for people to meet and socialise. The importance of being
inviting is shown by including everyone and welcome a broad and rather wide-spread clientele
with open arms. To provide a relaxed atmosphere is an active choice to encourage social
gatherings, for example by the personnel’s attitude and relaxed clothes in order for the guests
to be able to identify with them. Hence, the customer experience is to a large extent co-
created between personnel and consumers who both are responsible for a successful
customer experience and satisfaction (Bolton et al. 2014; Fellesson & Salomonson, 2016;
Lemon & Verhoef, 2016; Prahalad & Ramaswamy, 2004; Rigby, 2011; Russo Spena et al. 2012).

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The interviewees even illuminated that Urban Deli is a place which people should want to visit
to hang out with friends and have a great time. This customer-centric mind-set appears to be
present in every aspect of Urban Deli which once again depicts the focus on relationships,
rather than pure business- and profit related goals (Lemon & Verhoef, 2016).

5.2.2 Store Atmosphere and Assortment

The focus on the consumers is also evident in regard to the store atmosphere as well as
offerings of products as services, which goes well with literature on customer experience
(Bolton et al 2014; Meyer & Schwager, 2007; Spence et al. 2014). Throughout the interviews,
it became clear to us that the consumers are reflected in choices regarding the physical place
per se, such as music, design elements and furnishing which are all carefully considered
(Bäckström & Johansson, 2017; Goworek & McGoldrick, 2015). As touched upon, what lays
the foundation for these decisions is the consumers’ content, but also to promote Urban Deli
as a place for hanging out, which supports theory on the importance of the in-store
atmosphere (Mikunda, 2004; Spence et al. 2014). Fowler and Bridges (2010) argue that
contemporary consumers have high expectations on the store atmosphere which was
highlighted by our interviewees as well. It was said that due to Urban Deli being associated
with innovation and an experience out of the ordinary, they believed that the consumers were
expecting a lot from them, which is reflected in their decisions concerning atmosphere but
also in the creation of a consistent brand image (Goworek & McGoldrick, 2015; Nell & Hefer,
2015; Kim, 2013). Hence, we consider Urban Deli’s main motivator for creating the in-store
atmosphere, visual merchandising elements as well as atmospherics to be the consumers and
their astonishment rather than increased sales and impulsive buying as indicated by existing
research (e.g. Gudonavičienė & Alijošienė, 2015; Mehta & Chugan, 2013, Nell & Hefer, 2015;
Park, Jeon & Sullivan, 2015). Nevertheless, aspects such as increased sales and profits are
indeed emphasised and part of the strategy however, the consumers appear to be paramount.

From the interviews, we could clearly identify that convenience combined with quality is
thought to be one of the most appreciated aspects by the consumers and thus something
which Urban Deli strategically works with, by trying to facilitate the consumers’ lives (Meyer
& Schwager, 2007). One way of doing this is through the all-in-one concept which reflects a
retail mash-up and creates opportunities for the consumers to move freely between parts
which satisfy different needs and desires, separately as well as together. Subsequently, the
customer experience is also highlighted in the choice and innovation of products and services
in accordance with Meyer and Schwager (2007). This is a strategy which we consider that
Urban Deli has adopted in their strong focus on qualitative mealtime solutions in form of partly
prepared meals. This is an approach they wish to develop further and consider important in
relation to today’s consumers and consequently yet another way to meet consumers’ needs.

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5.2.3 Relationship Programme and Events

As mentioned, Urban Deli focuses on their regulars and work hard with their relationship
programme in order to build and maintain strong relationships with consumers by providing
offerings and prioritised attendance for events and happenings. Except from the creation of
long-term relationships, this can also be seen as a way to strengthen the brand image and
consequently gain competitive advantage. However, since a big part of the Urban Deli identity
is focused on being an open-minded meeting place where everyone is welcome, the
relationship programme is open for everyone to join and events are adapted in order to be
suitable for most consumers (Bolton et al. 2014). In agreement with Rigby’s (2011) argument,
Urban Deli offers an exciting and entertaining experience through events which is hard for
online competitors to imitate due to its characteristics and dependence on a physical place.
Rigby (2011) further argued that this is desired by consumers and increases the importance of
a physical place which can be confirmed from Urban Deli’s viewpoint as well (Puccinelli et al.
2009; Rigby, 2011).

Even though there is a rather broad range of events, we can see there is a common theme
apparent in all of them, namely lifestyle, food and beverages. These events can also be
strongly connected to hedonic needs and encourage feelings such as fun and pleasure through
their playful character (Sachdeva & Goel, 2015). However, many of the offered events are
highly educative which provides a more utilitarian perspective as well. Hence, we see that by
providing the different events, Urban Deli manages to embrace both rational and emotional
elements which is stated as highly important according to Blázquez (2014) as well as Sachdeva
and Goel (2015). This combination may consequently lead to a more unique customer
experience which is essential in today’s highly competitive retail landscape (Grewal, Levy &
Kumar, 2009). Additionally, it was indicated by the interviewees that the events provide a
twofold advantage since they strengthen the brand image and work as a promotional tool.
The events can thus be considered to be buzz creators and consequently advantageous from
a mass communication perspective (Keller, 2010). The buzz from the events also develops into
positive word-of-mouth since the interviewees stated that the events indeed are very
appreciated by most customers and they can therefore be considered essential from a
marketing communication as well as customer experience perspective. Furthermore, what
should not be forgotten is the focus on innovation in regard to the events. It was considered
vital by the majority of interviewees and confirms Sorescu et al.’s (2011) view on the
importance of using innovation to go beyond more traditional strategies and increase
competitive forces.

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5.3 Technology, Multichannel and Marketing
Communication

As previously argued, Urban Deli is at the forefront of adopting marketing innovations when
it comes to the customer experience and products offered. However, as we can conclude from
the empirical material, the company is in a start-up phase of adopting technological
innovations in some areas due to the current limited use of technological solutions in the
physical place (Fuentes-Blasco et al. 2017; Pinto et al. 2017). Consequently, Urban Deli does
not primarily focus on technological disruptions in the physical place, which is argued to be a
current trend in the retail industry as a response to digitalisation (Ernst & Young, 2011;
Hagberg, Jonson & Egels-Zandén, 2017; Pinto et al. 2017). However, the limited focus on
technology can be explained by the fact that the company prioritises other values such as
personal service and social values in order to make the physical place attractive (Bäckström &
Johansson, 2017). In contrast, we can see that some parts, for example the hotel, is more
focused on the adoption of technology in line with current trends in relation to digitalisation,
by focusing on facilitating the lives of their guests (Ernst & Young, 2011; Hagberg, Jonson &
Egels-Zandén, 2017; Pinto et al. 2017). Technological innovation is argued to have an even
larger impact than marketing innovation on the customer satisfaction and consequently
generating positive word-of-mouth (Fuentes-Blasco et al. 2017) which was brought up by
some interviewees, highlighting technological solutions as a source for customer satisfaction.

Some technological solutions currently offered or considered by Urban Deli in order to fulfil
utilitarian needs with focus on convenience and time-saving benefits, are app-solutions for
pre-ordering food and self-check-out solutions (Fuentes, Bäckström & Svingstedt, 2017; Pinto
et al. 2017). Existing literature highlights both positive and negative aspects of introducing
technology in the physical place and these aspects were emphasised by the Urban Deli
representatives as well (Fuentes, Bäckström & Svingstedt, 2017). In the interviews, it was
proposed that positive effects for this retail mash-up from more technological solutions would
be to make the visit quicker and more convenient for customers, which contradicts previous
literature claiming that technology would prolong the store visit (Fuentes, Bäckström &
Svingstedt, 2017). Yet, this aspect creates a dilemma for Urban Deli that on one hand wants
to facilitate consumers’ lives, but on the other hand wants to make people enjoy spending
time there. Hence, they do not want to stress the visit by encouraging the usage of technology
instead of personal relationships which indeed may be more time-consuming. Less interaction
with personnel and a loss of the social aspect were considered potential negative factors since
these reflect the core of Urban Deli (Fuentes, Bäckström & Svingstedt, 2017) and would
indicate a very different role for the personnel (Huré, Picot-Coupey & Ackermann, 2017;
Verhoef et al. 2009). Therefore, we see adoption of technology as an important and topical
challenge for a retail mash-up as Urban Deli which focuses on social aspects but still wants to

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keep up with trends and customer expectations. Therefore, it is not surprising that this is an
ongoing discussion at Urban Deli and future strategies need to be carefully decided upon.

As discussed, there are different opinions regarding what should be the focus in the physical
place in order to optimise the customer experience, and some researchers propose a focus on
technological innovation in order to stay competitive (Dennis et al. 2014; Poncin & Mimoun,
2014). However, this is not the focus of Urban Deli today. Instead, this retail mash-up
emphasises traditional values such as improving the service aspect and personal interaction
to offer a competitive and special customer experience, which is considered to be the most
important aspect in a physical retail place according to Bäckström and Johansson (2017).
Further, this can be connected to Rigby’s (2011) call for caution when it comes to
implementing technology in store, which should take the intended target group into account.
Urban Deli has a wide clientele and therefore, it may be challenging to implement
technological solutions with a specific target group in mind. An example of this is that Urban
Deli introduced self-checkout stations in the store already in 2009, but as explained by the
interviewees, the consumers were not ready. Consequently, this solution did not work as
expected from a time-saving nor customer experience viewpoint, since customers needed
help using it which lead to the decision to remove it. However, since self-checkout in grocery
stores is increasingly common, Urban Deli is considering a re-implementation of this
technology but with some improvements. Further, the Urban Deli representatives claimed
that if something would become the norm and expected by consumers, such as scan-and-go
solutions offered by Amazon (Grewal, Nordfält & Roggeveen, 2017), they would take this into
account as well since they are innovation-oriented and want to stay ahead of competitors.
Therefore, we see that even though technology might offer endless opportunities for retailers
as argued by Rigby (2011), the suitable level of technology in the physical place depends on
the type of retailer and the offered product or service. For Urban Deli, which we see as a
forerunner in many other areas connected to marketing innovation (Kotler & Keller, 2016),
technological innovation and the adoption of advanced technological solutions might not the
main focus area today, however something to keep in mind for the future in order to not lose
their niche.

5.3.1 E-commerce and Multichannel Strategies

As a result of digitalisation and online sales as characteristics of the contemporary society

(Rigby, 2011), Urban Deli is looking into different ways of offering their customers an
experience both online and offline. However, as with adoption of technology in the physical
place, the company can be argued to be in a start-up phase in this area as emphasised by the
interviewees. As consumers’ demands are changing, pressure is put on retail business models
which is something Urban Deli is aware of (Sorescu et al. 2011). Online consumption is
growing, and online channels are important for retailers to be present in to please customers,
but also to help them achieve a more convenient and time-efficient life. Consequently, Urban

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Deli is in the middle of a strategic work with the goal of figuring out how to work with e-
commerce and find a suitable balance between the online and offline offer, which are
becoming increasingly hard to separate (Brynjolfsson, Hu & Rahman, 2013; Grewal, Nordfält
& Roggeveen, 2017; Morse, 2011; Rigby, 2011; Verhoef, Kannan & Inman, 2015). Hence, this
is something we believe is important for a mash-up keep in mind and constant innovation
should be applied here as well for a coherent image and strategy.

Urban Deli offers consumers to buy and experience their products and services mainly at the
physical place, but increasingly through online channels as well (McGoldrick & Collins, 2007;
Zhang et al. 2010). We discovered that Urban Deli mainly focuses on the different channels
separately and they can therefore be argued to adopt a multichannel approach, rather than a
seamless omnichannel experience which is seen as increasingly important in the literature
(Verhoef, Kannan & Inman, 2015). However, this is not an objective for Urban Deli today since
the most vital touchpoint is, and will remain, the physical place as argued by the interviewees
which is in accordance with predictions by Deloitte Digital (2018). Thus, it can be argued to be
a strategic move to not go all in on technology and e-commerce but keep to the analogue and
focus on more traditional values to stand out and stay competitive in the digitalised world of
today.

5.3.2 Marketing Communication

Regarding marketing communication, this is an area where we consider Urban Deli to be at

the forefront by using mainly digital communication tools such as social media, instead of
more traditional promotional methods such as print advertising (Goworek & Pole, 2015, Tiago
& Veríssimo, 2014). Further, Urban Deli focuses greatly on relationship marketing and
integrated marketing communications which is common in the retail industry, since they use
various channels, such as webpage, digital newsletter, social media channels and events, to
complement each other and efficiently reach out to potential and existing consumers
(Goworek & Pole, 2015; Keller, 2010).

Social media marketing is one of the largest trends within marketing communication during
the last decade (De Veirman, Cauberghe & Hudders, 2017) and is the main communication
channel for Urban Deli. This was explained to be the case since it is fairly simple, cheap to use
and the most effective way of reaching out to today’s consumers who are known for being
active on social media (Tiago & Veríssimo, 2014; VanMeter, Grisaffe & Chonko, 2015). Another
trend which characterises the marketing communication of the last decade is influencer
marketing (De Veirman, Cauberghe & Hudders, 2017), which we discovered to be widely used
by the hotel part as an element of the Instagram marketing. The hotel part actively
collaborates with influencers who stay at the hotel and update their feeds with photos from
the rooms and hotel facilities (see examples in Empirical Material and Appendix G). In the
interviews, it was explained that for the hotel part, influencer marketing is the most effective

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way of reaching out to the target group of 2018, and that it is fairly cheap if done strategically.
When analysing the Instagram feed of the hotel part, we noticed that influencers indeed is a
recurring element, adding sophistication and a trendy vibe to the content. However, an
important strategic aspect to consider when using influencer marketing is that the chosen
influencers should be likely to be adored and trusted by consumers (De Veirman, Cauberghe
& Hudders, 2017; Weiss, 2014). This is something that the hotel takes into consideration when
choosing who to collaborate with to make sure they mediate an Urban Deli vibe. In the
interviews, it was emphasised that the hotel part carefully chooses influencers based on brand
fit, suitable character, number of followers as well as reach to make sure that they will be
successful ambassadors and endorsers of the brand (De Veirman, Cauberghe & Hudders,
2017; Weiss, 2014).

Instagram is often argued to be the most efficient channel of generating electronic word-of-
mouth and is frequently used by all parts of Urban Deli as a main marketing communication
tool (De Veirman, Cauberghe & Hudders, 2017). However, as highlighted in the literature,
many companies of today do not perceive themselves to use social media in an efficient and
strategic way (VanMeter, Grisaffe & Chonko, 2015). Nevertheless, the interviewees
highlighted that even if they could always do better, they are rather satisfied with the brand
image and content on social media. Hence, it became clear to us that most of the interviewees
believe that Urban Deli communicates a consistent image across different channels. This is
achieved by emphasising the same graphical design and an informative yet entertaining
character in line with the brand identity. Additionally, an important factor is that it is primarily
the employees such as waiters and bartenders who update the Instagram feed, rather than
the marketing department. Consequently, a more authentic and personal impression is
provided, consistent with the rest of the Urban Deli experience. After analysing the Instagram
feed of Urban Deli (see example photos in the section Empirical Material and in Appendix G),
the strategy to mix many types of content without any specific strategy, seems to be a winning
concept for a retail mash-up. We base this argument on the fact that engagement, in terms of
likes and comments, is generally higher on spontaneous posts picturing the everyday
operations than pre-designed content. This makes us question whether a specific focus area
or strategy is really needed on Instagram, or if this is more important for certain brand
identities or sectors. Again, we can see that it appears to be highly dependent on the type of
retailer, product and service offered as well as overall brand image and there is no one-size-
fits all strategy which confirms the argument presented by Hamilton, Kaltcheva and Rohm
(2016). Thus, we consider Urban Deli to have found their niche in communicating with
consumers on Instagram (Hamilton, Kaltcheva & Rohm, 2016) by making their feed personal,
engaging and up-to-date, providing a coherent image of the everyday operations.

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5.4 Managerial Challenges

As argued by Hultman et al. (2017), adopting new retail formats might imply various
challenges for a retailer, and we assume this to be especially valid when adopting a mash-up
retail concept. These challenges were discussed throughout the interviews and the ones most
commonly mentioned were: coordination and risk of confusion, implementation of
technological solutions, adaption of offer and constant development.

5.4.1 Coordination and Risk of Confusion

As highlighted in the literature, when adopting a novel retail format; products, services,
technology, people and the surrounding are innovatively combined in order to create a special
experience (Jain & Bagdare, 2009). After talking with all interviewees, we see that combining
and coordinating these aspects is one of the biggest challenges for a mash-up retailer due to
the many different parts of their offer. Moreover, the challenge of coordination of different
parts is connected to Urban Deli’s retailing format and how value is created for consumers
(Sorescu et al. 2011) which for a mash-up needs to be considered from a holistic perspective
to create a coherent customer experience. Further, we can clearly see how adopting many
various parts creates challenges in terms of governance connected to information and
communication among the employees at Urban Deli (Sorescu et al. 2011). However, this is
something that is handled through weekly meetings with managers from the different parts.
Further, to ensure effective governance and coordination between parts, cross training of the
personnel was brought up by the interviewees as a means for dealing with this challenge.
Additionally, coordination efforts that were mentioned are a shared focus on the customer
experience and arranging events together. Another aspect which adds to the coordination and
governance complexity is that Axfood as a part-owner also needs to be consulted when
important decisions are made and is thus another dimension that Urban Deli needs to take
into account. Hence, we see that even though coordination is a challenge for a mash-up
retailer, the situation can be facilitated by taking active measures and work with this on a daily
basis to ensure that the everyday operations run as smoothly as possible and that the retail
mash-up is experienced as one unit by their customers.

As described in the literature review, there is an ongoing discussion on what should be

prioritised in the physical place in order to attract and engage consumers. As brought up
throughout the interviews, the social aspects and relationships building with customers are
major focus areas which is supported by Bäckström and Johansson (2017). However, as a
result of rapid expansion, these efforts might be hard to coordinate as well, which we have
discovered to be particularly visible in the online channels of Urban Deli. As suggested by
Hamilton, Kaltcheva and Rohm (2016), companies should invest time in maintenance of social

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media channels in order to maintain positive customer relationships, which we do not
consider to be a main priority for Urban Deli today since consumer comments are rarely
replied to. Instead, the customer experience at the physical place is highly emphasised which
makes the online customer meeting rather neglected. We therefore consider this an area of
improvement and an important aspect of a retail mash-up, to provide a consistent customer
experience over all touchpoints and offer the same friendly and caring customer treatment as
in the physical place.

Another challenge connected to coordination of the different parts which became clear to us
concerns the use of customer data. This is highlighted by Zhang et al. (2010), who discuss the
difficulty of using and analysing customer data and behaviour across channels. This was
brought up in the interviews as well, since data from the relationship programme in the store
cannot be transferred and utilised in the restaurant due to different point-of-sale systems and
measurement of customer activity is therefore troublesome. Hence, we identify this as an area
in need of development to more effectively coordinate the various parts and get more familiar
with consumers’ behaviour, which is important yet complex for retailers today (Bolton et al.
2014). When considering online channels in addition to the physical place, another issue of
coordination emerges for a mash-up retailer. A multi-/omnichannel approach constitutes
challenges due to the complex nature of organising online and offline channels (Deloitte
Digital, 2018; Zhang et al. 2010). For Urban Deli, we believe this to be even more complex due
to the physical place consisting of various parts and touchpoints which all need to be taken
into account when integrating channels. Connected to the many different parts, the company
also faces a risk of confusion among consumers who might not know exactly what Urban Deli
is, or where to go when entering the facilities. When adding our own perspective and
experience from spending four days at Urban Deli, we agree and conclude that integration
and coordination of the different parts become even more important as a means of avoiding
unnecessary confusion among consumers. However, as suggested by the interviewees, this
can be handled by effectively working with and coordinating personnel and atmospheric
elements to create a special experience for consumers (Jain & Bagdare, 2009).

Further, the coordination is highly connected to the personnel which after all are the ones
primarily in charge of a functioning coordination of the retail mash-up. However, the high
employee turnover creates a barrier in this area since once a well-functioning structure and
coordination is achieved, there is a risk that it needs to be re-developed due to the
introduction of a new workforce. As mentioned by Levy and Weitz (2004), a retail format
includes a number of elements of the retailing mix such as the range of offerings, prices, place
and consumer interaction where the aspect of consumer interaction can be connected to the
challenge of high turnover and competence of personnel. The interviewees highlighted that
this is especially challenging in the restaurant sector, where a high employee turnover is a
constant issue and as a result, dedication might be limited among the employees which
consider their positions as temporary. This brings challenges regarding how much effort

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should be put on developing employee competence to make sure that they can offer a
superior customer experience and service and guide consumers in how to use the different
parts. The aspects of service, personal interaction and relationship building are emphasised
to be very important in the retail sector and thus something we believe is paramount for
mash-up retailers (Bäckström & Johansson, 2017; Lemon & Verhoef, 2016; Lin & Liang, 2011;
Russo Spena et al. 2012; Verhoef et al. 2009).

5.4.2 Implementation of Technological Solutions

Adoption of technological solutions in the physical place is a challenge that needs to be

considered by a retail mash-up as Urban Deli in order to stay competitive (Rigby, 2011).
However, as emphasised in the literature, one of the strongest competitive advantages for a
physical store is social interaction which is highly valued by consumers (Blázquez, 2014;
Bäckström & Johansson, 2017; Huré, Picot-Coupey & Ackermann, 2017; Morse, 2011). For
Urban Deli that focuses on personal and social aspects, we consider it vital to find a balance
in the implementation of technology in the physical place to make sure that social interaction
and relationship building is not lost (Morse, 2011). The implementation of technology might
lead to consumers avoid interacting with the personnel and miss out on the full experience
which creates a dilemma for a consumer-oriented retail mash-up (Fuentes, Bäckström &
Svingstedt, 2017). This was also described as challenging in the interviews since Urban Deli
wants to keep up with current trends and offer means of facilitating customers’ lives but still
keep the personal dimension significant for them.

Another aspect which we found important for a retail mash-up to consider is that innovative
technological solutions implemented in the physical place should be carefully designed with
the target group in mind (Rigby, 2011). However, this implies a challenge for Urban Deli which
has a wide-spread clientele and a balance needs to be found. Additionally, as mentioned
throughout the interviews, there needs to be a balance between the different parts regarding
adoption of technology from a coordination viewpoint as well. We can therefore see that it is
important for mash-up retailers to offer consumers technological solutions to a certain extent,
but that great caution should be adopted to keep the social interaction which makes
consumers want to visit the physical place (Blázquez, 2014). Moreover, there are further
challenges when implementing technological solutions, as exemplified by the difficulty of
using and analysing customer data and behaviour across touchpoints as mentioned above
(Zhang et al. 2010). In the future, automation technology could be used in combination with
consumer data in order to develop the customer experience and make it more personalised
and engaging (Edelman & Singer, 2015), which we see as an opportunity for mash-up retailers
for whom consumers are key.

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5.4.3 Adaptation of Offering and Customer Experience

Another area where balance is pivotal is in adaption of the offering of a mash-up retailer,
including the retail elements of product, price and physical place (Levy & Weitz, 2004). This
becomes particularly challenging for a retail mash-up as Urban Deli with such a wide clientele,
since the customer experience is an individual construct meaning that people experience and
value things differently (Meyer & Schwager, 2007; Rigby, 2011). Since consumers appreciate
different parts of the experience, retailers need to segment their consumers to strategically
satisfy each group which we see as a challenge for a retail mash-up with a wide clientele
(Rigby, 2011). One example related to the customer experience which was explained to us
during the interviews, is the difficulty to please everyone when it comes to the physical
atmosphere. Here, it is important to consider the preferences of the target group (Goworek
& McGoldrick, 2015) which becomes hard for Urban Deli due to their broad clientele. Rigby
(2011) argues that a critical point for retailers is to implement innovations that impress
consumers, which we consider even harder for a mash-up retailer with a broad clientele. In
today’s retail landscape, new consumer demands are emerging, which imply an abundance of
new desires and needs to satisfy (Bäckström & Johansson, 2017; Rigby, 2011). As explained in
the interviews, Urban Deli tries to find a mix and balance in their offering, but at the same
time they claim that it is impossible to please all customers. Lastly, as a consequence of
digitalisation, a challenge for Urban Deli is connected to the adaption of the offering and
customer experience through the integration of online and offline channels as well as e-
commerce strategies (Brynjolfsson, Hu & Rahman, 2013; Grewal, Nordfält & Roggeveen, 2017;
Morse, 2011; Rigby, 2011; Verhoef, Kannan & Inman, 2015). This was described by the
interviewees as an important part of their current strategic work and a constant trial-and-
error process, aiming to optimise and adapt their offer and attract customers, thus finding a
suitable balance.

5.4.4 Constant Development

Finally, we identify constant development and innovation as a major managerial challenge for
a retail mash-up, which is also emphasised in the literature in regard to traditional retail
formats (e.g. Sorescu et al. 2011). Urban Deli has become known for always being at the
forefront and trying out new things when it comes to assortment, atmosphere and concept.
Nevertheless, it is a challenge to stay innovative, especially in the highly competitive retail
sector with new players constantly entering the market (Hultman et al, 2017; Pinto et al. 2017;
Reinartz et al. 2011; Sorescu et al. 2011). Even though Urban Deli considers themselves a
market maker, it is vital to never be satisfied nor stop innovating in order to stay ahead of
competition (Reinartz et al. 2011; Sorescu et al. 2011). However, even if this is important, an
increased number of competitors may not necessarily be negative. On the contrary, this was
highlighted by the interviewees to have positive effects such as changed consumer behaviour
and possibilities to reach out to more people. Lastly, all parts of Urban Deli compete with

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something, mostly traditional players within restaurants or stores, but for the time being we
consider the brand to be unique due to the combination of offerings as a retail mash-up.

5.5 Retail Innovation and Future

As discussed throughout the empirical material as well as the analysis, innovation can be
considered paramount for the retail mash-up as well as an important aspect in the retail sector
overall to differentiate oneself and gain sustainable competitive advantage (Pinto et al. 2017;
Sorescu et al. 2011). However, what has been stated as rather challenging in the literature is
the adaptation of innovation in order to create a suitable level for the specific business (Rigby,
2011). Otherwise, the benefits from innovation such as increased profits and consumer
astonishment might not be reached, and the innovation efforts would be considered
unsuccessful. For Urban Deli and possibly retail mash-ups overall, it appears to be easier to
implement innovative solutions due to the flexibility and opportunities of development which
arise from combining different retail formats and resources. Further, since there are no well-
established rules concerning how to build or manage a retail mash-up, there is more room for
experiments regarding both marketing innovation and technological innovation (Fuentes-
Blasco et al. 2017; Pinto et al. 2017). Consequently, a retail mash-up has the capability to
embrace innovation and make it into profitable business ideas (Townsend, 2010).

Fuentes-Blasco et al. (2017) present a framework which highlights both marketing innovation
and technological innovation as positively co-related to strengthen brand image and customer
satisfaction, yet they considered technological innovation as having a higher impact than
marketing innovation. Based on our empirical material, we can confirm the importance of
innovation per se to have a positive influence on both brand image and customer satisfaction.
However, when it comes to the priority and stated importance between the two different
forms of innovation, we disagree with Fuentes-Blasco et al. (2017) in regard to the retail mash-
up. In a retail mash-up as Urban Deli, the physical place appears to be vital since social
interaction, relationships and the creation of a meeting place are the most valued aspects.
Hence, what is prioritised and has resulted in a great success is marketing innovation rather
than technological innovation. For Urban Deli, innovation has mainly been implemented in
relation to products, services and experiences (Kotler & Keller, 2016), whilst there has been a
slight caution towards in-store technological innovations due to the risk of losing the social
aspects. Subsequently, we see that technological innovation indeed might be the most
important for many retailers as suggested by Fuentes-Blasco et al. (2017), yet in a retail mash-
up, marketing innovation appears to have greater impact.

Regarding future innovation, our empirical material clearly indicates the vitality of constantly
keep innovating in order to stay competitive and not lag behind, which confirms Sorescu et

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al.’s (2011) view on innovative retail business models. The majority of our interviewees
highlighted the importance of predicting upcoming trends or even introducing new products
or services themselves which may become trends later on. These aspects go well together
with the fact that Urban Deli wants to be and remain a market maker and this focus might be
the winning strategy for a retail mash-up due to its many competitors and therefore a special
offering or experience is expected. Hence, we consider that it is even more important to not
rely on previous success and consumer loyalty for a retail mash-up than for a more traditional
retailer (Bäckström & Johansson, 2017; Rigby, 2011). Rather, the retail mash-up should
provide an experience out of the ordinary and surprise the consumers over and over again, as
stated by the Urban Deli representatives as well. Additionally, this is something which can be
connected to Rigby (2011) and Sorescu et al. (2011) who argues that today, the former retail
motto ‘retail is detail’ needs to be abandoned. Instead, the focus should be on more advanced
innovation and disruptive business ideas, which Urban Deli is a great example of and
something future retail mash-ups have great potential of becoming.

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6 Conclusion

In this closing chapter, we present our conclusions from the conducted study of the
phenomenon retail mash-up in order to answer the research questions and fulfil the purpose.
The conclusions are followed by practical and theoretical implications, limitations of this thesis
as well as recommendations for future research within the area.

6.1 Conclusions of Conducted Study

In the starting phase of this research, we discussed the role of the physical retail place in a
highly globalised and digitalised world and how the future may look for brick-and-mortar
retailers. This developed into three research questions and a main purpose to theoretically
frame the phenomenon of retail mash-up, which formed the base of our study. The three
questions are presented below and are followed by a discussion leading up to our theoretical
framing of the retail mash-up, which will be presented in our theoretical implications, as well
as our overall conclusions. The main conclusions have been discussed with and validated by
the CEO of Urban Deli in a follow-up interview. We believe this conversation in combination
with the analysis of our empirical material, show that our conclusions are of both practical and
theoretical relevance.

1. How can the retail mash-up be used and managed in order to keep the physical retail
place alive?
2. How can the customer experience be enhanced through a retail mash-up to gain
competitive advantage?
3. What are the managerial challenges for retailers who develop their service mix
towards a retail mash-up format?

From this research process, we can conclude that the novel phenomenon of retail mash-up
responds to the need for new and innovative business models in the retail sector. Additionally,
we see that the retail mash-up has the potential to meet increasing desires of customer
engagement and excitement in a more efficient way than traditional retailers. We also
consider the retail mash-up a format of the future and if strategically managed, one way to
ensure the survival of the physical retail place. Firstly, what signifies a retail mash-up is a
number of different parts which are well-coordinated in order create synergies, domino
effects as well as spill-over effects, both for the mash-up itself and its customers. Secondly,
for a successful mash-up, a consistent and shared theme as well as concept is essential in
order to be perceived as one unit. The concept should be niched to mediate its unique identity
and create competitive advantage yet still broad enough to be able to expand further and add

86
new parts. Thirdly, we conclude that it is beneficial to consider one specific part as the hub of
the retail mash-up and thus, the heart of the business. By positioning one part as the core, an
increased clarity and guidance can be provided in an otherwise ambiguous environment
resulting from the combination of several parts. Lastly, we conclude that the retail mash-up
has the potential to inspire, educate and influence consumers as well as provide benefits of
convenience, through constant development and experimentation.

Based on the discussion of our theoretical framing of retail mash-up above, innovation can be
argued to be paramount and based on our findings, we specifically emphasise the importance
of marketing innovation. Through marketing innovation implemented in the physical place,
consumers may become co-creators of their experience which satisfy hedonic needs in a way
that cannot be achieved online. Hence, we highlight that a retail mash-up can contribute to
the survival of the physical retail place by providing a superior and surprising customer
experience. By combining different parts, the mash-up can create an engaging and
entertaining experience out of the ordinary and consequently attract people to the physical
place. However, what comes with a retail mash-up is a wide clientele which is a great
opportunity but also a challenge since the retailing service mix and experience need to be
adapted accordingly. Moreover, retail mash-ups should embrace the opportunity to create a
meeting place by enhancing social interaction and relationship building. Long-term
relationships are recommended, and the customers can be engaged through for example
events and relationship programmes. The customer experience can also be improved by
considering the atmosphere of the retail mash-up, across all parts. Visual merchandising as
well as atmospherics should be carefully designed in accordance with the brand identity to
astonish the customers and create an inviting place for socialising. These aspects highlight the
importance of the physical place and can satisfy desires and stimulate hedonic feelings which
cannot be achieved online. Moreover, technological solutions can be adopted to enhance the
customer experience further, yet these create a dilemma for a retail mash-up. Due to the focus
on social aspects, we conclude that technology implementation constitutes a challenge where
balance needs to be found in order to keep the personal interaction but still offer benefits of
convenience.

The same dilemma can be seen in the difficulty to develop an omnichannel strategy, combined
with the coordination challenges of many parts. Regarding coordination, this was found to be
one of the most important aspects of a retail mash-up and thus a managerial challenge. A well-
functioning coordination needs to be achieved across all parts in regard to management,
personnel as well as the overall concept. Hence, we conclude that effective governance,
internal communication and internal branding are crucial elements for the retail mash-up in
order to be successful and profitable. Further, it is key that all parts of a retail mash-up
constantly interact and complement each other in order to achieve the commercial purpose.

87
Moreover, we can conclude that it is particularly important for a retail mash-up to be a
forerunner, never be satisfied and keep developing in order to stay ahead of competition and
take advantage of the unique concept. Thus, we see innovation as a main characteristic of the
retail mash-up. However, balance is essential and may be reached through constant
adjustment and development, for example in regard to products and services, experience,
integration of parts and technology. Additionally, marketing communication efforts need to
be innovative and adapted in accordance with the brand identity and the distinguishing
attributes of the novel format retail mash-up. Hence, to manage a retail mash-up requires a
future-oriented mind-set throughout the operations. This implies development of the
concept, the different parts as well as potential expansions. A rapid growth rate of a retail
mash-up may indicate challenges such as risk of confusion, lack of focus and brand dilution
due to the combination of different parts and the requirement of a coherent concept. Thus,
all parts within a retail mash-up need to innovate in a similar pace in order to reach
consistency, and potential additions to the mash-up need to fit the current concept.

Just as a retail mash-up implies new challenges, it also entails an abundance of opportunities
from which traditional retailers cannot benefit. One of the greatest opportunities is highly
related to the survival of the physical retail place, by the creation of a meeting place through
the social focus and a superior customer experience provided through the combination of
parts. Another one is more related to the business per se since the retail mash-up can generate
increased sales through collaboration between parts, generating synergies, spill-over effects
and domino effects. This triad of effects is an opportunity when adopting a retail mash-up
format and can lead to competitive advantages. However, to enjoy the full potential of a retail
mash-up and this triad of effects, an efficient management and coordination is required in
addition to a creative service mix. Based on the presented conclusions of the conducted study,
we conclude that the retail mash-up format has the potential to contribute to a brighter future
for the physical retail landscape.

6.2 Theoretical Implications

Due to the dynamic nature of the retail sector, constant research within the area is pivotal and
particularly in our contemporary society which has implied major opportunities as well as
challenges as a consequence of forces related to globalisation and digitalisation. However, the
field of alternative and innovative retail formats in the constantly changing retail sector has
been researched to a limited extent (Bäckström & Johansson, 2017). Indeed, there is existing
research in regard to formats such as showrooms, pop-up stores and click-and-collect
concepts (Beck & Tugl, 2015; Bell, Gallino & Moreno, 2014; Gensler, Neslin & Verhoef, 2017;
Hortaçsu & Syverson, 2015; Jones, Comfort & Hillier, 2017; Warnaby, Kharakhorkina, Shi &
Corniani, 2015). Nevertheless, the phenomenon of retail mash-up can be considered in its

88
infancy in the academic field and is scarcely researched. Hence, of today, there is no
compliance of the phenomenon’s meaning nor an established definition, and our study thus
meets the call for further research within the area of new and alternative retail formats as
encouraged in existing literature (Bäckström & Johansson, 2017). By conducting this study,
one aim was to theoretically frame the retail mash-up and consequently contribute to existing
theory as well as facilitate and lay a foundation for future research within the area. From our
research, we have obtained a deep knowledge and understanding of the phenomenon and
can therefore theoretically frame the retail mash-up as follows:

A retail format built from combining one or several retail components with place-dependent
services into one concept, with the opportunity of generating an extraordinary customer
experience and a profitable business through the triad of effects. The retail mash-up is a
strategy for the physical retail place’s survival and has the potential to inspire, educate and
influence consumers through constant innovation.

We have also contributed to existing theory by providing and specifying main components of
a retail mash-up which together with the theoretical frame provide clarity as well as opens up
for further development and research within the area. Further, this thesis has provided useful
and novel insights for theory on the constantly changing retail landscape in general by
generating new knowledge in regard to management and operations of innovative retail
formats. This study has in many ways proceeded from ideas presented by Reynolds et al.
(2007) as well as Sorescu et al. (2011) who both have contributed to the academic field of
innovation and retail formats. We gained great knowledge from their work and are content to
be able to develop theory in the same area and encourage continued research in regard to
innovative retail formats. Sorescu et al. (2011) highlighted the importance of embracing new
business models for increased consumer value and by presenting our findings we have
acknowledged this fact as well and developed this theory further by providing knowledge in
how retail mash-ups specifically may generate consumer value and consequently build a
profitable business. Additionally, both Sorescu et al. (2011) as well as Reynolds et al. (2007)
emphasise the vitality of constant innovation which we have concluded as a predominant
force of the retail mash-up. Further, the conducted research has displayed the importance of
marketing innovation and thus, developed and challenged theory conducted by researchers
such as Fuentes-Blasco et al. (2017). In contrast to Fuentes-Blasco et al.’s (2017) study on
various retail stores, we highlight marketing innovation as superior to technological
innovation for retail mash-ups. Hence, theory is developed and generated in the studied
research area and we have simultaneously opened up for future research by exploring a novel
phenomenon which subsequently is in need of more studies and additional approaches.

89
6.3 Practical Implications

As a result of globalisation and digitalisation, the retail sector and its practitioners face many
challenges, not least regarding how to ensure the survival of the physical retail place and how
to keep it attractive to consumers. The phenomenon of retail-mash up can be seen as a
response to these challenges and in addition to theoretically frame the concept, this study has
several implications for practitioners within the retail sector regarding this novel phenomenon
of which limited knowledge currently exists. Firstly, our study provides insights concerning
what a retail mash-up really is, and how it can be efficiently managed in order to reach
successful and profitable outcomes as well as competitive advantages in relation to more
traditional retailers as well as online competitors. Secondly, our study and findings highlight
the many opportunities, such as the triad of effects, which provide several advantages for
retailers when adopting a retail mash-up format. Thirdly, managerial challenges that come
with adopting a retail mash-up format are brought up and analysed, which can be helpful for
retailers wishing to develop their offer and business model towards a mash-up format. Finally,
to create a superior customer experience was found to be one of the most prominent
opportunities with a mash-up format, and our study provides useful insights and advice for
retailers how to work with and enhance their customer experience in a mash-up setting.

What was found to be a pervading feature in all aspects of the adoption and management of
a retail mash-up format, and thus vital for practitioners to keep in mind, is the importance of
finding a balance throughout the concept in order to successfully reap benefits connected to
the triad of effects. Further, by highlighting the many opportunities but also challenges that
come with adopting a retail mash-up format, we hope to encourage retailers to feel more
confident and dare to experiment and invest in their retail service mix leading up to adoption
of a retail mash-up format. In this way, retailers can counteract the retail apocalypse and
consequently contribute to the survival of the physical retail place by adopting a retail mash-
up format with an innovative mind-set.

Since our thesis builds on empirical material created from interaction with the retail mash-up
Urban Deli, we have also developed recommendations aimed directly at Urban Deli. These
recommendations are based on our research and are specifically written by considering
opportunities and challenges for Urban Deli. A detailed report with specific suggestions and
examples has been sent to Axfood as well as Urban Deli representatives which we hope will
be considered useful and inspiring for the future development. Recommendations have been
formulated in following areas: The Urban Deli Brand, Coordination of the Mash-Up, Customer
Experience, Technology and Online Presence, Marketing Communication as well as Future and
Innovation.

90
6.4 Limitations

This study has some inherent limitations due to the time restriction, as well as restricted
access since the retail mash-up is still a rather novel phenomenon and not widely represented
in Sweden. The study was conducted with one company as unit of analysis, and it could have
been beneficial to include several units of analysis to be able to compare the results and thus
gain a greater understanding of the phenomenon. Further, since only one company has been
studied, one industry is focused upon, namely the food and beverage retail sector. It would
have been interesting to look into mash-ups in other retail sectors as well, in order to compare
findings and find similarities and differences in characteristics.

This study adopts a Swedish perspective of the retail mash-up, which can be regarded a
limitation. We acknowledge that due to globalisation, the retail sector is rapidly changing
across the world, however the adoption of a mash-up format might look different in different
countries. A retail mash-up is likely to be a more common phenomenon in larger cities such
as New York or London than in Stockholm, and these differences would have been interesting
to look into by including mash-ups from several countries in the study. Finally, another
limitation can be argued to be the number of interviews, which are nine in total. However,
after having conducted the interviews, we felt that saturation had been reached in the sense
that no new information or insights emerged in the final interviews. Additionally, to
complement the information obtained in the interviews with observations of the physical
atmosphere and marketing communication material adds another dimension and perspective
and thus enriches the empirical material.

6.5 Recommendations for Future Research

Based on the conducted study, we have developed several recommendations for future
research in order to embrace the format of retail mash-up further which consequently may
lead to the development of the mash-up as a well-established and accepted phenomenon.
Firstly, we encourage that a similar study is conducted but from a consumer perspective
instead of a managerial perspective, as provided in this thesis. We believe that a combination
of the two perspectives will contribute to a comprehensive view and increased understanding
of the phenomenon of retail mash-up. Secondly, this study is conducted in Sweden and from
a “Stockholm perspective”, hence the knowledge of the phenomenon would benefit from
being researched in another context country-wise. Cultural differences as well as a country’s
development may influence the retail mash-up and it would therefore be interesting to take
these aspects into consideration, particularly in today’s globalised society. Moreover, we
suggest that future research look at the mash-up in other contexts within the retail sector as

91
well as include additional companies. This study is limited to Urban Deli and the food and
beverage retail sector, and the findings cannot be assumed to be applicable for companies or
the retail sector in general. Thirdly, we see great potential in conducting a study which
compares several retail mash-ups with different number of parts in order to explore possible
similarities and differences. Finally, a quantitative study would facilitate research with a larger
number of retail mash-ups, provide more generalisable conclusions and contribute with
another viewpoint in addition to qualitative studies.

92
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Appendix A: English Interview Guide
Introductive Questions
1. What is your position at Urban Deli?
2. Could you (briefly) describe your role and your responsibilities?
3. For how long have you been part of Urban Deli?
a. Have you always had the same position or tried several different areas?

Retail Mash-up
4. How would you describe Urban Deli’s concept / business idea?
a. What makes you unique?
5. What do you think the consumers appreciate the most with your concept of mixed
offerings (restaurant, hotel, store)?
6. What opportunities do you see with your concept compared to more traditional
approaches (not mixed)?
7. What challenges do you see with your concept compared to more traditional
approaches (not mixed)?

The Physical Atmosphere

8. How do you think your physical atmosphere is perceived by consumers? Why?
9. How would you say you (Urban Deli) works in order to create an appealing atmosphere
of the physical place?
a. Why? Can you give an example? If necessary: Ask more specific questions about
the Visual Merchandising elements.
b. Which in-store aspects do you consider as most effective for creating an
engaging customer experience?

An Engaging Customer Experience

10. How would you personally describe a superior customer experience?
a. In your opinion, how do Urban Deli work with the customer experience in order
to create competitive advantage?
11. What impact do you think the social aspect has on the customer experience (customer-
staff, customer-customer?)
12. We know you focus on the customer experience by, for example, arranging different
events and workshops (chocolate event, celebrity chefs etc.). How would you say this
is affecting your core offer: store, restaurant and hotel? (spill-over effect, profitability).

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Technology and Multi-/Omnichannel
13. In today’s society, there is a major focus on technological solutions in all industries due
to digitalisation. Do you work with technology in order to enhance the customer
experience? How? (e.g. in-store).
14. What is your strategy when working with other platforms in addition to the physical
store, such as website, social media?
15. According to you, do you feel that Urban Deli provides a consistent experience and
image over all channels, both online and offline? Why? Why not?

Position Specific Questions

CEO, General Manager and Operations Manager
16. Do you have any overall coordination strategy across the restaurant, hotel and store?
17. How do you perceive that the consumers make use of the different formats? In terms
of importance and focus.
a. Which format is visited first? Prioritised?
b. Do you measure how customers make use of the different parts?

Marketing and Communications Manager

18. Urban Deli is special in that sense that you combine several retail formats into one
concept. How do you deal with this when it comes to marketing communication
efforts? For consistency, positive brand image etc.
19. Which marketing communication channels do you use?
20. Which social media channels do you use? Why? How?
a. Do you have any theme for your social media promotions (e.g. focus on
emotions or actions)?
21. Do you use social media influencers?
a. If yes, as paid media, or just unpaid/earned?

Event Manager
22. Could you give some examples of and tell us about the different events you provide at
Urban Deli?
23. What do you want to achieve with the events in addition to the other services?
24. What is the target group for the events? Who is invited?
a. What kind of consumers participate in the events? Regulars?
25. What is the strategy behind the events? Special themes?

Restaurant Manager, Hotel Manager, Store Manager and Head Waiter

26. Do you perceive that a lot of restaurant/ hotel / store guests come for the concept as
a whole and visits the restaurant / hotel / store as well?
a. To what extent?

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 27. How do you perceive that the consumers make use of the different formats? In terms
of importance and focus.
a. Which format is visited first? Prioritised?
28. How would you describe a stereotypical Urban Deli customer in a few sentences?
29. Which is the most common feedback that you receive from your customers?
a. Do you implement this feedback in developing your store offerings? How? (e.g.
to enhance the customer experience).

Concluding Questions
30. How do you see Urban Deli develop during the next five years?
a. What is the next step for Urban Deli according to you?
b. Do you plan to integrate even more retail components (in addition to
restaurant, hotel, store...) into you offer in the close future?
c. Do you plan to expand into additional locations?
31. What challenges are you (Urban Deli) facing according to you?
a. How do you think these can be faced in the most efficient way?

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Appendix B: Swedish Interview Guide
Introduktionsfrågor
1. Vad är din position på Urban Deli?
2. Skulle du kunna beskriva din roll och dina ansvarsområden?
3. Hur länge har du varit del av Urban Deli?
a. Har du alltid haft samma position eller provat på flera olika områden?

Mash-Up Format Inom Detaljhandeln

4. Hur skulle du beskriva Urban Delis koncept / affärsidé?
a. Vad gör er unika?
5. Vad tror du att era kunder uppskattar mest med ert koncept som mixar olika
erbjudanden (restaurang, hotell, butik)?
6. Vilka möjligheter ser du med ert koncept jämfört med mer traditionella koncept (t.ex.
renodlade butiksformat)?
7. Vilka utmaningar ser du mer ert koncept jämfört med mer traditionella koncept (t.ex.
renodlade butiksformat)?

Den Fysiska Platsens Atmosfär

8. Hur tror du att er atmosfär på den fysiska platsen (hotell, restaurang, butik) uppfattas
av kunderna? Varför?
9. Hur skulle du säga att ni (Urban Deli) arbetar för att skapa en attraktiv och lockande
atmosfär?
a. Varför då? Kan du ge ett exempel?
i. Om nödvändigt: specifika frågor om Visual Merchandising element.
b. Vilka faktorer på den fysiska platsen anser du vara mest effektiva för att skapa
en upplevelse som engagerar kunderna?

En Engagerande Kundupplevelse
10. Hur skulle du personligen beskriva en extra bra kundupplevelse?
a. Hur tycker du att Urban Deli skapar konkurrensfördelar genom er
kundupplevelse?
11. Vilken effekt tror du att det sociala har på kundupplevelsen? (interaktion mellan
personal och kunder, kunder emellan)
12. Vi vet att ni fokuserar på kundupplevelsen genom att till exempel arrangera olika event
och workshops (chokladevengemang, kändiskockar osv.) Hur skulle du säga att detta
påverkar ert kärnerbjudande: butik, restaurang och hotell (till exempel ökad
försäljning, kundnöjdhet, ’spill-over effects’).

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Teknologi och Multi-/Omnichannel
13. I dagens samhälle finns det ett stort fokus på teknologiska lösningar inom alla
branscher på grund av digitalisering. Arbetar ni med teknologi för att förstärka och
förbättra kundupplevelsen? Hur? (t.ex. Inom butiken).
14. Vad är eran strategi när det kommer till att arbeta med andra plattformar utöver den
fysiska platsen, såsom hemsida och sociala medier?
15. Enligt dig, känner du att Urban Deli erbjuder en överensstämmande upplevelse och
image över samtliga kanaler, både online och offline? Varför? Varför inte?

Positionsspecifika Frågor
VD, Platschef och VD, Hotell
16. Hur är de olika affärsområdena koordinerade?
a. Finns någon gemensam strategi för ert koncept som helhet?
17. Hur upplever du att kunderna använder sig av/besöker de olika delarna av ert
erbjudande (t.ex. med tanke på fokus och betydelsegrad)
a. Vilket format/del besöks oftast först? Vilket verkar vara högst prioriterat?
b. Mäter ni i vilken utsträckning era kunder använder sig av de olika delarna?

Marknad och Kommunikationsansvarig

18. Urban Deli är speciellt på det sätt att ni kombinerar flera olika format i ett koncept.
Hur arbetar ni med detta när det gäller marknadsföring och kommunikation?
Exempelvis gällande ett överensstämmande budskap och positiv varumärkesimage.
19. Vilka kanaler använder ni er av för er marknadsföring?
20. Vilka sociala medier kanaler använder ni? Varför dessa? Hur arbetar ni med dessa?
a. Har ni specifika teman för era kampanjer på sociala medier? Till exempel fokus
på känslor eller handlingar?
21. Använder ni influencers på sociala medier?
a. Om ja, som betald media eller enbart obetalda?

Evenemangschef
22. Kan du ge exempel och berätta lite om de olika event som ni har på Urban Deli?
23. Vad vill ni uppnå med att anordna event i tillägg till era andra erbjudanden?
24. Vad är målgruppen för era event, vem är inbjuden?
a. Vad för typ av kunder är det som deltar? Stamkunder?
25. Har ni någon typ av strategi bakom eventen, tema?

Restaurangchef, Hotellchef, Butikschef och Hovmästare

26. Upplever du att många restaurang/hotell/butiks gäster besöker Urban Deli för
konceptet som helhet, och även besöker restaurang, hotell, butik och bar?
a. Om ja, i vilken utsträckning?

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 27. Hur upplever du att kunderna använder sig av/besöker de olika delarna av ert
erbjudande (t.ex. med tanke på fokus och betydelsegrad).
a. Vilket format/del besöks oftast först? Vilket verkar vara högst prioriterat?
28. Hur skulle du beskriva en stereotypisk Urban Deli kund i några meningar?
29. Vilken är det mest vanliga feedbacken du får från era kunder?
a. Används denna feedback för framtida utvecklingar av ert erbjudande? Hur? Till
exempel i samband till kundupplevelsen.

Avslutande Frågor
30. Hur ser du på Urban Delis utveckling under de kommande fem åren?
a. Vad är nästa steg för Urban Deli enligt din åsikt?
b. Planerar ni att lägga till och integrera fler format i ert erbjudande i den
närmaste framtiden?
c. Planerar ni att expandera till andra orter utöver Stockholm?
31. Vilka utmaningar står Urban Deli inför, enligt din åsikt?
a. Vilket tror du är det mest effektiva sättet för er att möta och hantera dessa?

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Appendix C: English Follow-Up Interview
Guide
1. How do you perceive the role and importance of retail mash-ups as a retail format in
today’s globalised and digitalised society?
2. We would like to argue that a retail mash-up is much about inspiring, educating and
influencing customers / guests. What are your comments in regard to this?
3. How do you believe a retail mash-up can find a suitable balance of being niched but at
the same time broad enough in order to enable future development and expansions?
4. We argue that a fast growth rate of a retail mash-up mat lead to risks regarding risk of
focus and brand dilution due to the many parts. How do you perceive this? What are
your opinions?
5. The coordination of different parts is one of the various challenges concerning a retail
mash-up. We believe effective governance and internal communication to be
important elements in order to face this challenge. How do you perceive this? What
are your opinions?
6. Lastly, we conclude that innovation is one of the absolute most important
characteristics of a retail mash-up, as we also discussed during last interview. Can you
confirm this? Would you like to add anything related to innovation?

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Appendix D: Swedish Follow-Up Interview
Guide
1. Hur ser du på rollen och betydelsen av retail mash-ups som format inom
detaljhandeln i dagens globaliserade och digitaliserade samhälle?
2. Vi skulle vilja påstå att ett retail mash-up handlar mycket om att inspirera, utbilda
och influera kunder / gäster, vad är din kommentar på detta?
3. Hur anser du att man bäst hittar en balans mellan att vara nischad men samtidigt
bred nog för att kunna utvidga sin verksamhet?
4. Vi tar upp att en snabb tillväxttakt av ett retail mash-up kan leda till risker när det
kommer till att tappa fokus och urvattning av varumärket på grund av många olika
delar. Hur ser du på detta? Vad är dina åsikter?
5. Koordinering av de olika delarna är en av de olika utmaningarna i och med ett
mash-up. Vi tänkte att effektiv styrning och intern kommunikation är viktiga
element för att bemöta denna utmaning. Hur ser du på detta? Vad är dina åsikter?
6. Slutligen, kommer vi påstå att innovation är ett av de absolut viktigaste
karaktärsdragen av ett retail mash-up, som vi pratade om väldigt mycket sist. Kan
du bekräfta detta? Vill du lägga till något relaterat till innovation?

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Appendix E: Table of Analysis
Table 3: Table of Analysis
Themes Key Findings
Managing a Retail Constant innovation
Mash-Up - Retail format / business model
- Innovation in several aspects
Combination of parts
- Synergy effects
- Effective coordination
- Consumer satisfaction
- One part as the heart of the retail mash-up
Appealing store atmosphere
- Relaxed meeting place
- Visual Merchandising
- Atmospherics
- Guidance between parts to avoid confusion
- Consistent theme between parts
The Superior Customer Marketing innovation
Experience - Consumers as co-creators
- Entertainment and engagement to create a meeting
place
- Trigger hedonic feelings
- Develops into a strong brand image
Relationship building
- Retail mash-up as a meeting place
- Personal relations and social interaction is key
- Importance of personnel and service
- Focus on quality and convenience through the all-in-
one concept
- Customer experience through innovation
Including atmosphere
- A place for hanging out
- Pleasure and consumer astonishment
Relationship programme and events
- Focus on long-term relationships
- A way to strengthen brand image and gain competitive
advantage
- Increases the importance of the physical place
- Promotional tool

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 - Satisfaction of both rational and emotional element
- Buzz and positive word-of-mouth
- Innovation in order to create surprising events
Technology, Innovation
Multichannel and - Limited technological innovation in physical place
Marketing - Difference between parts
Communication - Personal service and social values are prioritised
- Current and planned technological solutions: Apps, pre-
order and convenience focus.
Risks
- Loss of social aspect
- Different role of personnel
- Uncertainty of outcomes
- Hard to adapt to target group due to wide clientele
- Creates a dilemma since they want to be a market
maker but do not want to lose their niche
E-commerce and multichannel
- Finding a balance between online and offline
- Omnichannel hard to achieve with a retail mash-up
- Strategic decision to keep the analogue
Marketing communication
- At the forefront by focusing on digital channels
- Social media and influencer marketing focus
- Relationship marketing and IMC
- Communication of coherent brand image
Managerial Challenges Coordination and risk of confusion
- Highly important with a balance between different
parts of the retail mash-up
- Effective governance
- Online customer experience neglected due to strong
offline customer experience focus
Personnel
- High employee turnover
- Need of internal communication and internal branding
Implementation of technological solutions
- Sharing of customer data between channels
- Multi- / Omnichannel coordination complex due to
many parts
- Risk of losing social aspects, balance needed
Adaptation of offering and customer experience
- Balance needed due to the broad target group

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 Constant development
- Never stop innovating
- Importance of being a market maker for competitive
advantage
Retail Innovation and Innovation
Future - Easer to implement innovative solutions due to
flexibility and no established rules
- Marketing innovation is prioritised over technological
innovation in a retail mash-up
- The importance of predict trends

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Appendix F: Pictures of Store Atmosphere
Grocery Store and Delicacy Store

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Hotel

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Restaurant and Bar

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Rooftop Bar

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Appendix G: Pictures of Marketing
Communication Material
Instagram: Urban Deli

Instagram: Hotel With Urban Deli

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