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CHAPTER 1: INTRODUCTION

1.1 Background of the Study

The retail industry stands at a critical juncture in its evolutionary trajectory, facing unprecedented disruption from digital technologies and changing consumer behaviors. Traditional brick-and-mortar retailers, once the dominant force in commerce, now confront existential challenges as e-commerce platforms continue to capture increasing market share. According to recent industry reports, online retail sales accounted for 21.3% of total global retail sales in 2023, representing a 167% increase over the past decade.

1.2 Problem Statement

Despite widespread recognition of the need for digital transformation, many traditional retailers struggle to implement effective digital strategies. The problem is multifaceted: organizations face technological challenges in integrating legacy systems with new digital platforms, cultural resistance from employees accustomed to traditional operating models, strategic uncertainty regarding investment priorities, and resource constraints that limit digital initiatives.

1.3 Research Questions

1. How do traditional retail organizations navigate the digital transformation process?
2. What critical success factors determine the effectiveness of digital transformation in retail?
3. What barriers most significantly impede digital transformation efforts?

CHAPTER 3: METHODOLOGY

3.1 Research Design

This study employs a sequential explanatory mixed-methods design, beginning with quantitative data collection and analysis followed by qualitative interviews to explain and elaborate on quantitative findings.