Many retailers have recently started to offer customers the option to buy online and pick up in store (BOPS). We study the impact of the BOPS initiative on store operations. We build a stylized model where a retailer operates both online and offline channels. Consumers strategically make channel...

Most retailers today sell products through an online channel in addition to traditional physical stores. We investigate how such a multi-channel or omni-channel retailer should decide the number and size of physical stores. We show that a higher return rate for online purchases can incentivize...