The impact of E-commerce and

Online shopping on Traditional

retail.
Introduction
• E-commerce and online shopping have significantly impacted
traditional retail in numerous ways, reshaping the retail
landscape and consumer shopping habits. Here are some key
effects of e-commerce on traditional retail:
• Shifts in Consumer Behaviour
• Changes in Retail Footprint
• Price Competition and Discounting
• Changing Marketing and Advertising
• Impact on Employment
• Consumer Trust and Security
Shifts in Consumer Behaviour
• Consumers have increasingly shifted
their shopping behavior online due
to the convenience of shopping
from home and the availability of a
wider variety of products.

• Online shopping allows for easier

price comparison and access to
global products, changing consumer
expectations for in-store
experiences.
Changes in Retail Footprint
• As e-commerce grows, many
traditional retailers have
reduced their physical store
footprints, closing
underperforming stores or
consolidating locations.

• Retailers are rethinking their

store formats and using physical
locations more strategically for
fulfillment centers, showrooms,
or experiential spaces.
Price Competition and
Discounting
• Online shopping platforms
often offer lower prices due to
reduced overhead costs,
creating a competitive pricing
environment for traditional
retailers.

• Traditional retailers may face

pressure to match online
prices, affecting profit margins.
Changing Marketing and
Advertising.
• Online shopping has shifted
marketing focus toward
digital advertising, social
media, and influencer
partnerships.

• Retailers may also leverage

online data and analytics to
target consumers more
effectively.
Impact on Employment
• The shift to e-commerce can result
in changes to employment patterns
in traditional retail, with a potential
decrease in in-store staff and an
increase in warehouse and
fulfillment center jobs.
Consumer Trust and
Security.
• Traditional retailers transitioning to
e-commerce must ensure robust
cyber security measures and
consumer trust in online
transactions.

• Addressing privacy concerns and

data protection is critical for
maintaining customer confidence.
Conclusion

• While e-commerce has disrupted traditional retail, it also

presents opportunities for retailers to innovate and adapt
their business models. By embracing Omni channel strategies
and rethinking the in-store experience, traditional retailers can
leverage both online and offline channels to enhance
customer engagement and drive sales.
Thank you