The Transformation of the Retail Industry by Digitization: Operating Models, Geography Pattern and Future Trends
Research Article
Open Access
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The Transformation of the Retail Industry by Digitization: Operating Models, Geography Pattern and Future Trends

Zi Yang 1*
1 Taiyuan Xinlihuizhong School
*Corresponding author: jacky@taiyuanxinlihuizhongschool.cn
Published on 24 September 2025
Journal Cover
AEMPS Vol.219
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-80590-387-1
ISBN (Online): 978-1-80590-388-8
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Abstract

Digitization is one of the current pivotal research topics. All industries are gradually undergoing transformation by leveraging digital technologies. Research approach on digital transformation process of retail sector includes: operating models, geography pattern and future trends. New outputs will be introduced in three innovative aspects of smart inventory system, AI prediction, IoT at consumer-end and cloud computing at retailer-end. Built on the research of consumers’ demand, an overview of restructure of relationship between demand and supply is discussed. After stating how digitization alters the traditional agglomeration, the research focus on the persistence of physical clusters. The future trend of retail industry is highlighted and fully discussed. Research result shows that digital technology increases new outputs in aspects of selling and inventory, making both consumers and retailers more dominant to the market and product design. Therefore, digital technology balances the influence brought by geographical patterns by weakening some traditional geographical factors.

Keywords:

Retail transformation, Digitization, AI

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Yang,Z. (2025). The Transformation of the Retail Industry by Digitization: Operating Models, Geography Pattern and Future Trends. Advances in Economics, Management and Political Sciences,219,39-44.

References

[1]. Sagar, S. (2024) The impact of digital transformation on retail management and consumer behavior. Journal of Business and Management, 26(1), 06-14.

[2]. Ferdousmou, J., Prabha, M., Farouk, M. O., Samiun, M. D., Sozib, H. M., and Zaman, A. M. (2024) IoT-Enabled RFID in Supply Chain Management: A Comprehensive Survey and Future Directions.  Journal of Computer and Communications, 12(11), 207-223.

[3]. Susumu Mahara Michael Verhaart, (2017) A SaaS-Based SCM Solution for New Zealand Small and Medium-Sized Enterprises in Retail-Related Sectors. Retrieved from: https: //scholar.google.com/scholar?hl=en& as_sdt=0, 5& q=A+SaaS-Based+SCM+Solution+for+New+Zealand+Small+Medium-Sized+Enterpirsed+in+Retail-Related+Sectors& btnG=

[4]. Chen, Y. (2023) Analysis of Marketing Strategies of Cross-border E-commerce Platforms in the United States-Shein. Highlights in Business, Economics and Management, 19, 478-483.

[5]. Yuan, Y., Wang, J., Zhou, G., Rong, Y., and Ma, Y. (2024) A Framework and Implementation of the Customer-to-Manufacturer (C2M) Paradigm. Advanced Manufacturing, 1(1), 1-18.

[6]. Reinartz, W., and Imschlo, M. (2017) From Point of Sale to Point of Need: How Digital Technology is Transforming Retailing. NIM Marketing Intelligence Review, 9(1), 42.

[7]. Peng, X., Wang, G., and Chen, G. (2023) Spatial Distribution of Freshippo Villages under the Digitization of New Retail in China. Sustainability, 15(4), 32-92.

[8]. Horakova, J., Uusitalo, O., Munnukka, J., and Jokinen, O. (2022) Does the Digitization of Retailing Disrupt Consumers’ Attachment to Retail Places?. Journal of Retailing and Consumer Services, 67, 102958.

[9]. Francesco, T. (2023) Cosmetics-Perfumery. Retrieved from: https: //www.chooseparisregion.org/industries/cosmetics-perfumery

[10]. Begley, S., Marohn, E., Mikha, S., and Rettaliata, A. (2020) Digital Disruption at the Grocery Store. McKinsey & Company: London, UK, 1-8.

[11]. Wiefel, M. (2015) Digitization: The Impact on Traditional Retail and the Future Model of Multichannel. International Journal of Scientific and Research Publicationios, 5(3), 1-18.

[12]. Paul, J. (2024) Privacy and data security concerns in AI.  Research Gate, Retrieved from: https: //scholar.google.com/scholar?hl=en& as_sdt=0%2C5& q=Privacy+and+data+security+concerns+in+AI& btnG=

References

[1]. Sagar, S. (2024) The impact of digital transformation on retail management and consumer behavior. Journal of Business and Management, 26(1), 06-14.

[2]. Ferdousmou, J., Prabha, M., Farouk, M. O., Samiun, M. D., Sozib, H. M., and Zaman, A. M. (2024) IoT-Enabled RFID in Supply Chain Management: A Comprehensive Survey and Future Directions.  Journal of Computer and Communications, 12(11), 207-223.

[3]. Susumu Mahara Michael Verhaart, (2017) A SaaS-Based SCM Solution for New Zealand Small and Medium-Sized Enterprises in Retail-Related Sectors. Retrieved from: https: //scholar.google.com/scholar?hl=en& as_sdt=0, 5& q=A+SaaS-Based+SCM+Solution+for+New+Zealand+Small+Medium-Sized+Enterpirsed+in+Retail-Related+Sectors& btnG=

[4]. Chen, Y. (2023) Analysis of Marketing Strategies of Cross-border E-commerce Platforms in the United States-Shein. Highlights in Business, Economics and Management, 19, 478-483.

[5]. Yuan, Y., Wang, J., Zhou, G., Rong, Y., and Ma, Y. (2024) A Framework and Implementation of the Customer-to-Manufacturer (C2M) Paradigm. Advanced Manufacturing, 1(1), 1-18.

[6]. Reinartz, W., and Imschlo, M. (2017) From Point of Sale to Point of Need: How Digital Technology is Transforming Retailing. NIM Marketing Intelligence Review, 9(1), 42.

[7]. Peng, X., Wang, G., and Chen, G. (2023) Spatial Distribution of Freshippo Villages under the Digitization of New Retail in China. Sustainability, 15(4), 32-92.

[8]. Horakova, J., Uusitalo, O., Munnukka, J., and Jokinen, O. (2022) Does the Digitization of Retailing Disrupt Consumers’ Attachment to Retail Places?. Journal of Retailing and Consumer Services, 67, 102958.

[9]. Francesco, T. (2023) Cosmetics-Perfumery. Retrieved from: https: //www.chooseparisregion.org/industries/cosmetics-perfumery

[10]. Begley, S., Marohn, E., Mikha, S., and Rettaliata, A. (2020) Digital Disruption at the Grocery Store. McKinsey & Company: London, UK, 1-8.

[11]. Wiefel, M. (2015) Digitization: The Impact on Traditional Retail and the Future Model of Multichannel. International Journal of Scientific and Research Publicationios, 5(3), 1-18.

[12]. Paul, J. (2024) Privacy and data security concerns in AI.  Research Gate, Retrieved from: https: //scholar.google.com/scholar?hl=en& as_sdt=0%2C5& q=Privacy+and+data+security+concerns+in+AI& btnG=

Cite this article

Yang,Z. (2025). The Transformation of the Retail Industry by Digitization: Operating Models, Geography Pattern and Future Trends. Advances in Economics, Management and Political Sciences,219,39-44.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICFTBA 2025 Symposium: Financial Framework's Role in Economics and Management of Human-Centered Development

ISBN: 978-1-80590-387-1(Print) / 978-1-80590-388-8(Online)
Editor: Lukáš Vartiak, Habil. Florian Marcel Nuţă
Conference website: https://2025.icftba.org/Galati.html
Conference date: 17 October 2025
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.219
ISSN: 2754-1169(Print) / 2754-1177(Online)

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