SHOPPING TRANSFORMATION: THE IMPACT OF E-COMMERCE ON PHYSICAL STORE REVENUE (STUDY ON ALI SUWARDI STORE IN SOUTH JAKARTA CITY)

Abstract

This study examines the impact of e-commerce development on the revenue of physical stores in the digital era, which is increasingly influencing the retail business landscape. Using a qualitative descriptive method, this research analyzes changes in consumer behavior and the challenges faced by physical stores in maintaining revenue amidst the rise of online shopping. The research questions include the influence of ecommerce on physical store revenue and the adaptive strategies adopted by these stores. Data were collected through interviews, observations, and document studies to understand factors influencing competition, such as ease of access, pricing, and consumer preferences shifting toward digital platforms. The results show that e-commerce presents significant challenges for physical stores, particularly in terms of price competition and convenience for consumers. However, some physical stores have managed to survive by improving services, strengthening local marketing, and collaborating with digital platforms. This study concludes that the ability to adapt to digital trends and effective marketing strategies can help physical stores remain relevant and competitive in the era of shopping transformation. Recommendations for physical stores include developing service innovations and considering collaborations with e-commerce to expand market reach.