Impact of Online Shopping on Traditional Retail Businesses Report

This report investigates the significant impact of online shopping on traditional retail businesses, particularly those located on the high street. The study examines how the rise of e-commerce has altered consumer behavior and business operations, including the shift from offline to online shopping. The research explores the objectives of surveying the influence of online shopping development on retail trade operations, effects on the productivity of retail businesses, factors influencing consumer switching, and changes in business patterns to meet customer satisfaction. The literature review covers online shopping, its impacts, and perceived risks. The data analysis includes a presentation of findings, explanations, and interpretations, with a conclusion summarizing the findings and suggesting areas for future research. The report assesses the degree to which online shopping affects retail businesses, how business patterns have changed, and the impact on profitability, providing a comprehensive overview of the challenges and opportunities facing traditional retailers in the digital age.

Impact of online shopping on traditional retail businesses 1
HOW THE EMERGENCE OF ONLINE SHOPPING IMPACTS THE TRADITIONAL
RETAIL BUSINESSES AT HIGH STREET?
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Impact of online shopping on traditional retail businesses 2
Table of Contents
Introduction......................................................................................................................................2
Research aim................................................................................................................................3
Research objectives......................................................................................................................3
Research questions.......................................................................................................................4
Literature Review............................................................................................................................4
Online shopping...........................................................................................................................4
Impacts of online shopping on customary retail business at high street......................................6
Perceived risk of online shopping in customary retail business..................................................7
Data Analysis...................................................................................................................................7
Data presentation..........................................................................................................................8
Explanation of tabulated data.......................................................................................................9
Analysis as well as interpretation of the data.............................................................................10
Conclusions....................................................................................................................................12
List of References..........................................................................................................................15

Impact of online shopping on traditional retail businesses 3
Introduction
The use of the internet is offering the best platform where different customers and
business operators are able to communicate. The advancement in the use of online has led to
different negative impacts on operations of traditional retail business in different marketplaces.
The increase in technological usage has provided ideal chances to the sellers to get to the client
in easier, quicker, and in an economical manner (Singh 2019). Online shopping is presently
rising with speed by holding the attention of retail marketplaces. This study is important as its
aims at determining various influences of online shopping on different traditional trade
operations at the high street. Particularly, this study aim at providing more illustrations on the
present work that had been done in explaining how advancement in the use of online shopping
have affected operations of traditional business operations (Masruroh 2017). The study has the
objective of offering a notion of the online shopping choice procedure by giving a comparison of
the offline as well as online choice creation and recognizing the aspects that inspire different
clients to decide whether to perform online shopping or to set for the shopping that is offline
among different retail businesses.
Research aim
The primary target of this examination is to survey the major impacts of online shopping
on custom retail trade operations. The examination further tries to identify the essential results of
the emergence of online shopping on behaviors of customers.
Research objectives
Some of the essential objectives of this research that will help the researcher to arrive at a
conclusion of the study will revolve around the following objectives:-

Impact of online shopping on traditional retail businesses 4
i. To survey influence of varying development of online shopping on customary retail trade
operations
ii. To explore different effects on the productivity of retail businesses owing to the start of
the e-store
iii. To study different aspects that impact the client to switch from the offline shopping of
traditional retail to shopping through online
iv. To assess change in patterns of business to attain the satisfaction of the customer
Research questions
This survey sought to give an appropriate answer to the following investigative questions:-
i. What is the degree to which the varying development of online shopping has impacted
customary retail businesses?
ii. How patterns of businesses have remained altered for traditional traders to effectively
respond to ever-changing drifts of online vendors?
iii. How has profitability of traditional retail stores been influenced by online shopping?
Literature Review
Online shopping
Online shopping has helped in the operations of buying as well as selling different
services and commodities over internet. Online shopping has dramatically altered how different
operators of traditional retail businesses conduct themselves in a different marketplace. The use
of the internet in different businesses has changed how different businesses market their services
and products to change how customers make decisions when they are shopping for different
products. Cost (2016) denoted that online shopping has enabled different customers to bypass the

Impact of online shopping on traditional retail businesses 5
brick-and-mortar retail store completely by comparing different prices and reading other online
reviews of users before making the purchase. Mehta, Jain, and Jawale (2014) reasoned that the
online shopping advent together with the increased popularity of the internet has developed the
convenient as well as a dynamic approach to the manner individual retails. Individuals have been
able to retail in different form from the traditionally classically recognize way along with the
mode of doing shopping. Targeted clients no longer have to wait for different retail shops to
open at a particular time and any place they want in order to purchase different products and
services making online shopping to be the time-saving techniques. The internet usage and
application has grown to be the new avenue for individuals to communicate and exchange vital
data, services, and goods and has changed to be constant of daily operations (Atahan Yilmaz and
Koçoğlu 2018). The number of individuals that uses the internet is improving by the day so the
number of individuals now varies to purchase different products online. As stated by Mortimer,
Fazal e Hasan, Andrews, and Martin (2016), retailers establish different stores on the internet
that enables them to expand their marketplace, attain bigger demographics, and reach other new
clients.
According to the study by Kuraesin and Prasetyowati (2018), the capability to measure
the customer satisfaction level with online shopping is vital in gauging failure and success of
retail businesses. To do so, online shopping must be capable of determining together with
understanding different values of their potential and existing clients. Moreover, online shopping
in different high street in regions such as Australia is affected by different factors that have led to
changes in how customers do their shopping (Çelik 2015). Different factors such as convenience,
capacity to compare costs of features and products, time-saving, capacity to contrast different
products by various retailers at similar moment can be attained easily that may not be available

Impact of online shopping on traditional retail businesses 6
in the stores within high street. Convenience can comprise of the overall ease of attaining the
product, the duration is taken during the process of shopping, and minimization of the overall
effort of shopping. Kumar and Kashyap (2018) recorded that different clients are able to save
much of their efforts when shopping online. For instance, they are able to save time as they are
not going to the store in person, queuing, selecting desired commodities, parking, saving on gas,
avoiding going out in bad weather, and avoiding contact with different individuals when solitude
is required for shopping. Besides, when different consumers engage in online shopping they are
capable of doing a comparison of prices of different products being offered by diverse retailers
without having to visit in person all the stores to make their purchases. Jones and Livingstone
(2017) stated that online shopping has enabled customers to shop for different products and other
services at any time of the day without experiencing any restriction in terms of geographical
movements. Hence, although online shopping has changed to be the boom for clients in different
high street in Australia, there is the flip side to it as far as the traditional retailers are concerned
(Dalli, Tuan, and D’Acunto 2018). Presently, online shopping has made different traditional
retail business at the high street to focus on incorporating different techniques to make them
competitive in the market. Besides, online shopping has made traditional retail business to
implement the use of internet in their operations as a way of being competitive in every changing
market due to advancement in technologies.
Impacts of online shopping on customary retail business at high street
The implications of online shopping on operations of retail businesses and society have
different merits and demerits depending on how individuals use it in their operations. for
instance, Hallsworth (2018) stated that according to a survey of Forrester, at least half of the US
households regularly do their shopping on a website, but online purchases still make up just

Impact of online shopping on traditional retail businesses 7
seven percent of sum of retail sales. With the increased with the advancement in online retail
shopping, more and more traditional retail businesses at high street focus on concentrating on
their online reputation together with worth marketplace (Lee and Kim 2019). Unless the physical
storefront of such businesses is extremely successful, the majority of the customary retail trade
operations concentration may require to rest in great experience gain through online operations.
Without a total package to offer to customers, traditional retail businesses may lose their ground
in the quickly varying retail business society (Qinghe 2013). Online shopping has lead to a
decrease in customer loyalty and reduction in operations of traditional retail businesses. For
instance, most customers are attracted to the use of online services in purchasing and making
inquiries of different products than visiting different stores in person.
Perceived risk of online shopping in customary retail business
Presently, technological advancement as well as achievements, has created the internet to
be used by every business operator and customers. However, the internet leads to limitless
admission for various operations together with products available for most purchasers. Most
shoppers perceive the danger when they purchase different products in a digital platform. Clients
of online retail often notice higher threat in high technology shopping formats like mobile
shopping, direct sales, mail order, along with the catalogue. Risk has occurred for an extended
duration on traditional retail businesses that try to embrace the use of online shopping.
Accordance to study by Zendehdel, Paim, and Delafrooz (2016), there are various risks that
traditional retail businesses face when they embrace the use of online shopping in their daily
operations. They are exposed to financial risk together with product category risk that has a huge
impact on their sales and development. Privacy remains a major problem that online shopping
exposes the customary retail trade operations to when their operations are not well secured

Impact of online shopping on traditional retail businesses 8
(Dillon, Buchanan, and Al-Otaibi 2014). Besides, different risks as brought about by online
shopping to operations of a traditional retail business can lead to expected or possible
dissatisfaction with the purchase of a product that depends majorly on the purpose of purchase of
the client.
Data Analysis
It is evident that most retail is controlled in traditional lines of trade operation except the
small number of superstores that end in a particular alteration in their trade actions. However, the
arrival of online trade in current society has set upon them since they had been trailing on diverse
operational rounds. The examination has been prepared on the various basis to determine how
the establishment of online shopping has impacted operations of traditional retail business in
different places around the global society (Mahendra and Yoshiki 2015).
Data presentation
The table below shows the examination of several aspects of the influence of online shopping on
customary vend business at the high street (Extracted from research conducted by Qinghe 2013)
List of Queries YES NO
Is there existence of any decline in standard turnover within the last 3
years?
40 10
Do we have any decline in the profit margin? 48 02
Is there any enhancement in rates of discount presented to clients in
the current era that you have made?
37 13
Do Clients request for a discount prior to making any purchase? 45 05

Impact of online shopping on traditional retail businesses 9
Do you maintain more diversity of stock at the trade office in present
times?
05 45
Do you focus on giving after-sale service of individualized character
to different clients?
36 14
Do you do advertisement on your offer? 27 23
Do you give services of homestead delivery to different clients? 12 38
Is there the increment in engaging in window shopping within
present days?
40 10
Explanation of tabulated data
The above table tries to illustrate that presently there is a decline in revenue or turnover in
various projects with the digits standing out to be as high as eighty percent. Most of the
traditional retailer at the high street has agreed to decrease in the margin of their profits in
present times as more discounts are being offered by them to different targeted clients with the
aim of ensuring higher amount of sales (Arora and Aggarwal 2018). More clients in such
retailers are seen to visit stores that offer a good discount in present days. Hence, online
shopping has forced many traditional retailer businesses at the high street to currently focus on
maintaining a good variety of stock. Hence, most traditional retail businesses are concentrating
on the idea of providing different types of customer-oriented services that can help them to
attract and retain several customers within their operations. The socking signal is the
improvement in doing window shopping that clarifies that potential clients remain unchanged
into real clients.

Impact of online shopping on traditional retail businesses 10
Graph illustrating the instigation of several features of the effect of online shopping on
customary retail business at the high street (Extracted from research conducted by Qinghe
2013)
Decrease in turnover
Decrease in profit margin
Increase in Discount
More enquiry concerning discounts
More Variety of Stock
After Sales Services
Advertisement
Home delivery services
Increase in trend of window shopping
0
10
20
30
40
50
60
YES
NO
Analysis as well as interpretation of the data
Turnover – Traditional retail business at the high street over duration of over 3 years through
examination has perceived the substantial reduction in their revenue as evaluated to previous
years prior to the commencement of study. It is evident that due to the presence of online
shopping, there has been a decrease in operations of most traditional retail businesses. Such

Impact of online shopping on traditional retail businesses 11
conditions in the operations of traditional retail business in high street remain as a caution signal
for the venture (Zaid 2018).
Scope of earned profit – Online shopping has conveyed in the conflict at prices in the
marketplace where traditional retailers operate their businesses. The use of online shopping has
rough such work within the marketplace and chief suffers from this price conflict are the
traditional retail businesses within the high street. Therefore, for the traditional retail business to
survive, most of their management has to make an attempt to decrease their costs but believing
their high charges of operations that they have to give up on their margins (Suel, Nicolò, and
Polak 2018).
Discount within operations – Traditional retailers in the high street are at the alarming rate
trying to increase their discount so as they can catch up with other retail businesses that have
embraced the use of online services. The retailers have a focus on increasing their discount so as
to endure the online setups that anguish different client with amazing discounts (Dai, Forsythe,
and Kwon 2014). Online shopping has made it tough for traditional retailers to contest with
online stores in line with the provision of discount. Hence, most traditional retail businesses have
focus on remaining competitive by reducing their values that is affordable by most customers so
that they can be able to sell most of their products and service at the high street.
Variety of stock - Online stores around high street maintain the wide variety of stock, as well as
vendors, be unsuccessful in this perspective to the e-store through the broad margin. However,
several retailers that use such traditional models to operate were found by the examination to
have no tendency to compete efficiently with different online setups in such regards. Hence,
online shopping has caused a reduction in the stock that traditional retailers keep to compete
around the high street as most clients have changed their model of purchase by ordering from

Impact of online shopping on traditional retail businesses 12
different online platforms rather than going to stores in person. Besides, online shopping has
impacted operations of traditional retail businesses in the high street as they cannot maintain the
huge stock (Cao, Xu, and Douma 2014). They are unable to maintain such stockpile as that may
possess the adverse effect of unsold stockpile at end of year that at the end may lead to massive
business fails to the apprehension parties.
Customers’ services – Several vendors in the current society are improving services they render
to client as a way of creating loyalty to improve their operations. For instance, repair together
with the need for preservation to fitting as well as insurance, vendors in the high street are
currently parting no stones unchanged to specialized sectors in which shops of online not to
succeed to be productive. Online shopping has made customary trade operations to focus on
changing manner on how they conduct their operations. For instance, traditional retailers are
currently concentrating on ideas of creating homestead delivery operations in similar row of the
shops that are online (Sramova and Pavelka 2019). They have also focused to change their
operations by providing after sales services with a smile as a way of ensuring that they are
competing with the ever-changing market that is embracing the application of internet.
Window shopping – Online shopping has led to trend that has persisted in present times for
clients to look through the yields in the store that is physical and purchase them from different
online stores at decreased costs. Traditional retail businesses in the high street are presently is
faced with the need to be more potential clients than real ones (Vezir, 2018).
Advertisement – Presently, traditional vendors are more concerned with advertisement
promotion more than before with the aim of enhancing their sales.