Abstract

Digital transformation is reshaping retail through innovations in customer interaction and operations. A key development is the rise of hybrid service offerings, such as “Just Walk Out” (JWO) technologies, which combine traditional retail formats with digital automation. This study explores how such offerings impact customer satisfaction and organizational performance in the Portuguese FMCG sector, focusing on Pingo Doce & Go and Continente Labs. Adopting a Grounded Theory approach, in-depth interviews and customer surveys were conducted to iteratively develop a conceptual framework linking digital transformation, hybrid offerings, customer experience and firm performance. Findings show that hybrid systems act as both technological upgrades and strategic responses to digital disruption, enhancing customer engagement and organizational adaptability. This study contributes to Information Systems research by providing a grounded framework that explains how hybrid innovations drive service improvement and competitive resilience, offering insights for scholars and practitioners steering technology-enabled transformation in retail.

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