For the twelve months ending October 31, non-store sales grew by 8.2%
while in-store sales grew by only 3.4%, continuing the trend of recent
years. A closer look reveals that these broad-based numbers actually
understate ecommerce growth.
A lot of retailers
wonder if offering an online shopping option will simply cannibalize their
brick-and-mortar sales – and by how much. Andrea Pozzi has been studying this
question, and he documents the positive impact
of online sales in a paper that’s about to publish in the RAND Journal of
Economics. It’s good to get some answers, and some of them are surprising. Pozzi
agreed to talk with us about his research in advance of its publication.