How does E-commerce Affects A Brick and Mortar Department Store? A Qualitative Case Study Analysis at one of National Department Store in Indonesia

This research aims to explore how e-commerce affects a brick and mortar department store and how a brick and mortar department store cope in digital era. This study is qualitative research with single case study approach at one of national department store in Indonesia. The data was collected using semi-structured interview. Five participants were willing to take part in this study anonymously. The participants' job titles are chief of financial officer (CFO), company's director, chief marketing officer (CMO), head of marketing and customer's loyalty, and regional store manager. To elaborate the interview data, 160 open-ended questionnaires were distributed to the department store customers. The data analysis techniques used in this research are pattern matching and linking the data to propositions. The results of this study indicate that E-commerce has small effect on a bricks and mortar department store and the company would combine offline stores and online technology. The theoretical implication of this research is confirming previous theory and applying the brick and click framework theory into practice. The managerial implication of this study is that a brick and mortar department store could combine offline stores and online technology if the synergy between channels is achieved. The value of this study is providing insight on how e-commerce affects a brick and mortar department store and how a brick and mortar department store turning into brick and click department store in order to cope in digital era.