E-COMMERCE PROLIFERATION AND SMALL RETAIL BUSINESS SUSTAINABILITY: EVIDENCE FROM INDEPENDENT RETAILERS IN ABUJA, NIGERIA

Abstract

This study examined e-commerce proliferation and small retail business sustainability, with specific focus on the profitability and survival of small independent retailers in Abuja, Nigeria. The study was motivated by the growing shift from traditional physical retailing to online platforms, social media selling, mobile payments and app-based shopping. A descriptive survey research design was adopted. The population comprised residents of Abuja, while a sample size of 400 was determined using the Taro Yamane formula. Out of the distributed questionnaire copies, 376 were properly completed and used for analysis, giving a 94.0% response rate. Data were collected using a structured questionnaire and analysed with SPSS version 27.0. Descriptive statistics and simple linear regression were used for analysis. Findings revealed that e-commerce proliferation had a significant effect on the profitability of small independent retailers, with a grand mean of 3.150, R = .391, R² = .153, F(1, 374) = 67.606, β = .391, B = .378, and p < .001. The study also found that e-commerce proliferation significantly affected survival, with a grand mean of 3.267, R = .444, R² = .197, F(1, 374) = 91.768, β = .444, B = .412, and p < .001. Strategies for improving profitability and survival recorded strong agreement, with a grand mean of 3.523. The study concluded that e-commerce proliferation poses both threats and opportunities for small independent retailers. It recommended hybrid selling, social media marketing, digital payment adoption, customer relationship management, digital skills training and cooperative service arrangements.