Towards Digital Transformation: A Case Study to Identify and Mitigate COVID-19 in the Retail Industry

The purpose of this research is to demonstrate how retailers have used the digital transformation to mitigate the negative effects of COVID-19. As this research aims to understand a real-life phenomenon for which there is very limited knowledge, we created the opportunity to empirically explore the digital transformation in the retail industry during COVID-19 pandemic. In general terms, the research follows a qualitative, descriptive, and exploratory case study design. The results have shown that retailers should focus on technological innovations, adapt their business models, manage their distribution channels, and strengthen their customer-centric strategy. Moreover, it is necessary to emphasize that while smart retail is gradually standing out in the sector, there are also some factors that have not been overcome, such as lack of digital culture, training, and digital leadership. Despite these identified difficulties, the adoption of a digital strategy will allow a differentiating, safe and secure shopping experience, which today is one of the decisive factors for the survival of companies. The COVID-19 pandemic had social and economic effects in all industries – retail was no exception. In turn, the digital technologies already used by companies began to contribute to retailers being able to respond more quickly to customer needs, having been fundamental in fighting the COVID-19 pandemic. To the best of the authors’ knowledge, this research is one of the first to explore this topic, bringing new contributions to theory and managerial practice.