OMNI CHANNEL RETAILING AND CUSTOMER RETENTION AT MATAHARI: A COMPREHENSIVE ANALYSIS OF MATAHARI DEPARTMENT STORE

• Main Author: Warsito
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/83218
• Institution: Institut Teknologi Bandung

The retail industry has witnessed a significant transformation with the rise of digital technology, particularly through the adoption of omnichannel retailing, which integrates various customer touchpoints such as physical stores, online websites, and mobile apps. This comprehensive study examines the impact of omnichannel retailing on customer retention at Matahari Department Store, focusing on key dimensions such as integration, seamlessness, and fulfilment. The research employs a mixed-methods approach, combining quantitative data from surveys and sales records with qualitative insights from customer interviews and customer observe. The objective is to provide a holistic understanding of how omnichannel strategies enhance the shopping experience and foster customer loyalty. The study uses Structural Equation Modelling Partial Least Square (PLS-SEM) to analyze the data, revealing significant insights into customer behavior and retention. Matahari, as Indonesia’s prominent fashion retailer, has faced numerous challenges, particularly during the COVID-19 pandemic, which forced a rapid shift in consumer behavior towards online shopping. This shift highlighted the necessity for a robust omnichannel strategy to maintain market position and customer engagement. The study's findings indicate that effective omnichannel integration and a seamless shopping experience are crucial for improving customer retention. PLS-SEM results showed that omnichannel fulfilment had the strongest positive effect on customer retention, followed by seamlessness and integration. The research also delves into the external business environment using PESTLE and Porter's Five Forces analyses, alongside internal analyses of Matahari's marketing mix and STP (Segmentation, Targeting, Positioning). The competitive landscape is examined, comparing Matahari's strategies against competitors like Metro Department Store, Sogo, Ramayana, Uniqlo, and H&M. Ultimately, the study presents a SWOT analysis that identifies strengths such as brand loyalty and extensive physical presence, weaknesses including slow digital adaptation, opportunities in expanding e-commerce, and threats from agile global competitors. The recommendations aim to enhance Matahari’s omnichannel capabilities, ensuring a resilient and customer-centric retail model.