Abstract

۱٫ Introduction

۲٫ Theoretical framework

۳٫ Methodology

۴٫ Description of the small cities studied

۵٫ Ullared

۶٫ Eslov ¨

۷٫ Vingåker

۸٫ Results and analysis

۹٫ Orchestras and relations with visitors – the compiled construct

۱۰٫ Orchestras and relations with municipalities and landlords – the composite construct

۱۱٫ The retailing eco system – the emergent construct

۱۲٫ Orchestration techniques

۱۳٫ Discussion

۱۴٫ Conclusions

۱۵٫ Limitations and further research

References

Abstract

     The structural transformation of retail is challenging for many small cities. Rather than seeing the retailer as a sole player, this article considers retail in small cities to be shaped in a retail eco system consisting of many different actors besides retailers such as municipalities, landlords, business/city organisations, customers/citizens. The key contribution of the article is to provide new perspectives on the challenges and management of retail in small cities by applying a metaphor from the culture and fine arts sector, orchestration. The article is based on a combination of in-depth interviews and participant observation at three small cities in Sweden. In total, 38 interviews have been conducted with representatives of retailers, municipality, business/city associations and landlords.

     The general aspects of retail eco system as an orchestra are presented according to Klein and Kozlowski, (2000) multilevel constructs: compiled (bottom-up), composite (top-down) and emergent (culture, history). Thereafter, a number of orchestration techniques, structured around Pine and Gilmore, 1999 dimensions of experiences are presented. The article shows that the future of retailing in small cities is not merely dependent on the retailers, but on collaborations with other retailers, landlords and municipalities. An understanding of consumer culture and development of entrepreneurship culture and networks is crucial for survival and prosperity. Furthermore, rather than copying strategies developed both in and for metropolitan areas, there is a need to build on and strengthen the characteristics of the local retail eco system and the community brand identity.

Introduction

     The structural transformation of retail is challenging for many small cities struggling with empty retail spaces (Powe, 2020), a development starting with the establishment of external malls (Fahrangmehr et al., 2001), continuing with the emergence of online shopping (Ingene, 2014) and reinforced by the pandemic (Grimmer, 2021). The restructuring has led to economic stress, especially for many small retailers within rural or semi-rural communities (McGee and Rubach, 1997; Runyan and Huddleston, 2006). In a study on retail decline in France’s small and medium-sized cities over four decades (Delage et al., 2020), the decline in shop diversity affected about a third of the municipalities observed in each period. The closing of brick and mortar stores has been described as a “retail apocalypse” (Helm et al., 2018; Nihalani and Reid, 2018) that calls for a rethinking of retail, both at a business level and a societal level. The strategies to combat this development differ. Grewal et al. (2017) stress technology and big data collection as key tools in facilitating store versus non-store purchase decision-making. Others focus more on the “soft” values of physical stores, for example, Robaton (2018) suggests close and trustful relations with the consumers and engaging environments, as well as the conversion of shopping centres into communities and accelerated collaborations between retailers and other stakeholders. The new retail landscape we are experiencing at this time in history has changed not only the way goods are purchased, but also relations between customers, employees and retailers (Pantano and Migliarese, 2014; Fuentes et al., 2017).

Conclusions

     Local retail eco systems consist of a diverse set of actors at different levels. The future of retailing in small cities is not merely dependent on the retailers, but also on collaborations with other retailers, landlords, politicians and administrative staff at the municipal level, citizens and not least the ability to co-create an attractive retail atmosphere with customers. Understanding consumer culture and aiming to continuously develop entrepreneurship culture and networks will benefit the development of retail in small cities. The managerial implications are that retail in small cities in the future should not copy strategies developed both in and for metropolitan areas, but rather build on and strengthen the characteristics of the local retail eco system and the community brand identity. This calls for more and detailed multi-level studies of local retail eco systems. Small cities need to find their own visions for the future. To do so, the orchestration techniques described in this article may be a useful starting point. Rather than seeing the retailer as a solo player, the stakeholders at the different constructs: composite, compiled and emergent, may jointly contribute to the orchestration of successful retail in small cities.