The contribution of physical retail to value co-creation in the town centre ecosystem; evidence from Grimsey

The purpose of this paper is to identify ways to reconfigure physical retailing to ensure it maintains a sustainable position within the town centre ecosystem in the twenty-first century. The discussion draws on the evolving service-dominant logic (S-DL) and its service ecosystems perspective and evidence of best practice provided by actors involved in town centre regeneration between 2013 and 2018.

The research adopts a case methodology drawing on data submitted and analysed as part of the Grimsey Review 2, an independent review of the UK town centres. The data set provides examples of good practice sourced from industry leaders, trade bodies, local authorities and extensive social media engagement.

The paper evaluates the response of physical retail through an S-DL and service ecosystem lens. The review of best practice suggests that physical retailers have the best chance of survival if they proactively collaborate with other actors within a wider community hub solution, align their strategic position and operations to a holistic centre place plan and take steps to actively engage operant resources of consumers in creating physical store experiences.

The paper provides an evaluation of best practice in town centre regeneration implemented between 2013 and 2018. The case offers a rich bank of examples, illustrating how physical retailers are responding to the twenty-first-century challenges facing town centres. It makes recommendations for further improvement in the three critical areas identified above.

This paper provides further empirical support for the application of an S-DL and service ecosystem perspective to place marketing. To achieve effective value co-creation, physical retailers need to align themselves more closely with other actors in the system and maximise the potential of operant (and operand) consumer resources.