Format Development and its Effects on Store Image – A Case Study on the inner-city IKEA Hamburg-Altona

Purpose The purpose of this research is to explore the effects of format development of an original single-format general merchandise retailer on store image. Theoretical Perspectives This study is grounded on the alignment of existing literature in the fields of format development and store image. The theoretical framework build thereupon is bridging the two fields and develops a model to measure store image and customer perceptions in general merchandise retailing. Methodology Given the exploratory purpose, the study is designed as a qualitative case study using the inner-city IKEA store Hamburg-Altona as a suitable case with the management and customers as embedded units. An abductive approach and hermeneutic analysis are applied to collect and analyze the data. Empirical Data Underlying the principle of multiple sources of evidence as recommended for case studies, the first step includes documentation and direct observation followed by 30 semi-structured customer interviews and a focus group. Both supported by photo-elicitation. The last step consists of four semi-structured interviews with IKEA managers. Conclusions The study explored how the fields of format development and store image are interrelated. The caused effects on store image are measured on store image related attributes. The research revealed that effects on store image after developing the format are indispensable. This is related to the fact that format development most likely involves a new or adjusted location, layout, assortment and broadened clientele, all of which are connected to new perceptions. Thereby, the key to success lies in not trying to transfer the “old” store image to the new format but trying to comprehend how the new format will affect the customer perceptions from the outset. Thereupon, an intended image should be created in order to minimize the gaps to the actual store image of customers