Substitution or complementarity? How the Internet changes city centre shopping

Abstract

The rapid expansion of the Internet has spawned a growing body of literature on the impact of online shopping (here called e-shopping) on physical shopping. This paper explores the impact of e-shopping on shopping at city centres in the Netherlands for 25 retail categories, using a sample of 3200 Internet users. Results indicate that in the short run, e-shopping is unlikely to have a significant effect on purchases at city centre stores. In the long run, however, e-shopping may well substitute for going to actual stores. Furthermore, consumers today frequently consult the Internet before making a purchase from a store, and the city centre constitutes a source of information before an online purchase is made. The impact of these events, however, differ largely among the various retail categories and types of Internet shoppers.