Understanding the potential of digital technologies in enhancing retail business models: an exploratory study

Abstract

Retail business models on a global scale are undergoing seismic shifts. The advancement brought about by technologies are blurring the boundaries between physical and virtual stores. In the context of South Africa, this could not be more evident in the retail sector. Retailers are ramping up operations in an effort to start servicing and interacting with customers across the omni-channel. This study seeks to gain a deeper understanding of how digital technologies are enhancing the retail business model and examine what challenges have been encountered through the integration process. An exploratory, qualitative research approach was used to investigate and acquire rich insights from the experiences of senior executives of listed entities in the retail sector. A total of eleven semi-structured in-depth interviews were conducted. Data was analysed on the basis of building on key constructs identified from the literature, in an effort to understand what role digital technologies are having in enhancing retail business models. This research study confirmed that digital technologies are prevalent and are having an active role in advancing retailer business models. Principal findings indicated that people, system infrastructure, and communication are all key components which have been enhanced in the business model through digital technology adoption.