Multiple criteria approach applied to digital transformation in fashion stores: the case of physical retailers in Spain

Abstract

In a very open competitive context where pure online players are consistently gaining market share, the use of digital devices is a steady trend which is penetrating physical retail stores as a tool for retailers to improve customer experience and increase engagement. This need has increased with the COVID-19 pandemic as electronic devices in physical stores reduce the contact between people providing a greater sense of health safety, hence improving the customer experience. This work develops a multiple-criteria decision-making model for retailers who want to digitize their physical stores, providing a systematic approach to manage investment priorities in the organization. Important decisions should involve all different areas of the organization: Finance, Clients, Internal Processes and Learning & Growth departments. This strategic decision can be made hierarchically to obtain consistent decisions, also the use of the Order Weighted Average operator allows for alternative scenarios to be presented and agreed among the different areas of the business. The authors develop a use case for a Spanish fashion retailer. In the most widely agreed scenario the preferred devices were more technologically complex and expensive, while in the scenarios where the head of Finance is more predominant, cheaper and simpler devices were selected.