THE ROLE OF INNOVATION IN IMPROVING RETAIL BUSINESS COMPETITIVENESS IN BENGKULU CITY

Abstract

The retail industry in Bengkulu City faces challenges in increasing competitiveness amidst changes in technology and consumer behavior. This study aims to analyze the role of innovation in increasing the competitiveness of retail businesses in Bengkulu City, as well as identifying the challenges faced by business actors in implementing innovation. The approach used in this study is qualitative with in-depth interview methods and participatory observation. The results of the study show that technology-based innovations, such as the use of e-commerce platforms and digital-based inventory management systems, have a positive impact on operational efficiency and increased customer satisfaction. However, retail business actors also face major challenges such as limited resources, low technological literacy, and limited access to digital infrastructure. The implications of this study are the importance of government support and increasing technological literacy to encourage the adoption of innovation in the retail sector.