Market research suggests that customers have been steadily increasing their online spending in the pet food and accessories category. Your retail store does offer limited online retail services, but you and your business partner want to focus on the premium service physical retail format.

You decide to offer custom-made clothing and pet fashion consulting services to keep customers coming back to your physical retail store.

Why is this the best marketing strategy? What other challenges are there with competing with online retail? What effect does it have on consumer behavior?