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Digitalization of Local Owner-Operated Retail Outlets: Between Customer Demand, Competitive Challenge and Business Persistence

The digitalization of the retail industry is a disruptive innovation process that threatens the very existence of Local Owner Operated Retail Outlets (LOOROs). Despite the manifold digital options to regain competitive power, LOOROs struggle in their digital transformation and persist often in their traditional business behavior. As their customers get more and more used to buying via digital channels, they more and more expect the provision of digital services. This paper and the presented study aim to understand why the LOOROs are so hesitant. Our results show that the owners of LOOROs are often decoupled from their near and far business environment. This leads to a wrong selfassessment and implies the risk that the services provided do neither match the competitive environment nor customer expectations.