Rethinking retail digitisation in urban settings. The case of Leipzig, Germany

Digitisation is considered as a key transformation in urban development and retail. However, in academia, a strong focus is laid on large cities, as they are considered to be at the front line of this transformation. Second-tier cities are often neglected, although digitisation is seen as a process that offers both challenges and opportunities. This paper has two research objectives. First, it investigates the German city hierarchy using social, economic and retail data. Based on a cluster analysis of the 14 largest German cities, two clusters have been identified, revealing a stark contrast between more innovative and faster-growing areas (cluster 1) and cities with rather moderate dynamics (cluster 2). Second, Leipzig is chosen as a representative of German second-tier cities. By means of an urban living lab, the aim is to investigate the ongoing process of digitisation bringing together relevant stakeholders such as retailers, citizens, logisticians, researchers and the municipality. Different digital tools are put to the test. On that basis, living labs are discussed as a scientific approach, bridging the gap between theory and practice and adding further evidence of how digitisation takes place aside from first-tier cities.