Determinants of E-Commerce Aspiration and Technology Prioritization Among Independent Brick-and-Mortar Retailers in North America
Maxim Kozlov , Individual Researcher, GeorgiaAbstract
Independent brick-and-mortar retailers face increasing pressure to expand into digital channels, yet limited empirical evidence exists on how small and medium-sized retailers prioritize digital transformation compared to larger enterprises. This study examines online strategy, technology adoption, and artificial intelligence (AI) sentiment among independent retailers in North America.
A cross-sectional online survey of 71 items was conducted across thirteen retail verticals, yielding 3,317 responses, of which 1,985 were complete (59.8% completion rate). A focused sub-sample of established independent retailers (EIR) was analyzed separately. EIRs were defined as retailers generating more than USD 500,000 in annual gross transaction volume (GTV), a threshold chosen to identify businesses with sufficient scale to pursue strategic digital investments.
The findings indicate a substantial aspiration gap: 37.5% of EIR respondents currently operate a dedicated e-commerce store while 52.6% identify one as their ideal state, a 15-percentage-point shortfall. Retailers prioritize online channels as an extension of their physical stores, with driving local foot traffic (50.9%) ranking as the most important non-transactional objective. Profitability and margin optimization (35.4%) surpassed new customer acquisition (21.1%) as the principal online focus, reflecting heightened sensitivity to rising supplier costs and regulatory changes.
In terms of technology priorities, social commerce (28.9%) and Buy-Online-Pick-up-In-Store (27.6%) were favored over AI-based tools. Only 12% of respondents reported strong satisfaction with how well their website reflects their in-store brand. AI sentiment remains divided, with concerns centered on data accuracy (58.0%) and privacy (52.6%).
Overall, established independent retailers perceive online presence primarily as a tool for profitability and local traffic generation rather than as a standalone growth channel, favoring revenue-generating technologies over operational AI.
Keywords
digital retail transformation, e-commerce adoption, phygital retail, small and medium-sized enterprises, artificial intelligence sentiment, omnichannel strategy
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Management and Economics
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