Store format convergence: retailers strategy and consumer perception

The study analyzes inter-format competition, currently a debated issue due to a growing similarity between store formats on Italian market. We demonstrate empirically that store formats are gradually converging as regards range, time- saving services, prices and promotions. The convergence between store formats is analyzes in terms of a dual perspective combining the “supply” side with demand: the company side of the investigation focuses on the degree of similarity in services and retail mix, and the demand side focuses on consumer perception of how different formats meet their shopping needs. It is important for management to investigate this phenomenon not just from the perspective of retailers, but from the perspective of consumer and retailers in order to give useful indications for retailer competitive strategy and clarify the role that format will have in consumer purchasing decisions. The greater spatial rivalry between store formats impacts on both retailer and producer marketing strategy. Theoretical and marketing implications are discussed.