IMPACT OF E-COMMERCE ON TRADITIONAL RETAIL: A STUDY OF ECONOMIC, SOCIAL AND POLICY IMPLICATIONS OF E-COMMERCE GROWTH

DOI: https://doie.org/10.65985/APER.2026571072

Authors:

SWEETY JAIN, MOHIT KUMAR MAURYA

Keywords:

E-commerce, Traditional Retail, Economic Impact, Social Implications, Policy Dimensions

Abstract:

The high growth rate of e-commerce has altered the retail formats of the globe, redefining the consumer behaviour, the employment patterns and the business models. This paper gives a descriptive analysis of the economic, social and policy implications of e-commerce expansion to traditional retail. Using polls among retailers and consumers and backed by other reports and policy papers, the study indicates patterns, not causality. Traditional retailers are recording a negative growth in sales and customer traffic as well as needing to diversify product range and embrace digital media. Socially, the change in shopping patterns has decreased the level of interaction on the community level in the physical market, and there has been concern regarding the vitality of neighborhoods and security of jobs especially to the small firms and informal employees. Policymaking is still piecemeal and there is little action being taken to facilitate digital integration, reskilling the workforce, or safeguarding local retail ecosystems. The results highlight the two-sided nature of opportunity and disruption as, even though e-commerce will expose more markets and efficiency, it will also pose the sustainability of brick and mortar outlets. The study provides insights to policymakers, retailers, and researchers to develop more flexible and accommodating strategies based on the changing retail environment by recording such trends.

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