Digital transformation in retailing and post-Covid-19 pandemic recovery prospects of the retail sector

The study aims to determine the impact of Covid-19 on the South African retail sector and to assess its implications on the future of retailing with a specific focus on e-retailing. The digital transformation of the retail sector on account of the Covid-19 pandemic will take centre stage in this paper. The study employed a descriptive research design and quantitative methods. Time series retail data obtained from Stats SA is analysed to assess the road toward the sector's recovery. The results of the study indicate that 2020 retail trade sales experienced a significant decline in both constant prices (-6.51%) and current prices (-4.36%). This downturn was more severe than the negative change observed in 2008 (-0.08%) and 2009 (-2.99%), indicating a more substantial contraction in retail trade sales during the Covid-19 pandemic. Following the downturns, there has been a rebound in 2021, as seen in the positive percentage changes in constant prices and current prices (6.25% and 9.65%, respectively). However, the growth rates in 2022 have been greatly diminished with the constant prices of retail trade sales increasing by 1.73 percent only, and current prices by 7.23 percent, suggesting a difficult road to full recovery. The Covid-19 outbreak has had a significant impact on consumer behaviour, leading to an increase in online shopping and the expansion of e-commerce. The closure of physical stores, combined with concerns about in-person shopping, has accelerated the adoption of online platforms and overall digital transformation in the sector. Retailers have embraced digital transformation to meet changing customer expectations. The long-term implications of this shift toward online consumer behaviour and e-commerce will continue to shape the future of the retail sector, emphasising the importance of digital strategies, enhanced customer experiences, and adaptable business models.