The impact of e–commerce growth on traditional retail sectors in Nigeria: An evaluation of policies in Lagos State (2010–2020).
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Background of the Study:
The rapid expansion of e–commerce has transformed the retail landscape globally, and Nigeria is experiencing similar shifts. In Lagos State, the emergence of digital marketplaces has disrupted traditional brick–and–mortar retail sectors, compelling a re–evaluation of existing policies and business models (Olu, 2023). Over the past decade, exponential growth in online platforms—fueled by improved internet penetration, technological advancements, and evolving consumer preferences—has led to significant changes in market dynamics. Traditional retailers have been challenged by reduced foot traffic and increased operational pressures, forcing them to adapt to a competitive digital environment (Ibrahim, 2024). In response, policymakers have introduced regulations intended to balance innovation with the protection of conventional retail businesses, addressing issues such as consumer protection, regulatory compliance, and fair competition. Nonetheless, gaps remain in policy effectiveness, as traditional retailers continue to struggle with declining market shares and adaptation challenges (Adebola, 2025). This study critically examines the impact of e–commerce growth on traditional retail sectors in Lagos State and evaluates the effectiveness of policy interventions in harmonizing digital and physical retail environments.
Statement of the Problem:
Although e–commerce growth has spurred innovation and expanded market access, it has also presented significant challenges to traditional retail sectors in Lagos State. The rapid digital transformation has disrupted conventional business models, leading to reduced sales and market share for physical retailers (Olu, 2023). Moreover, current policies have struggled to keep pace with technological advances and shifting consumer behaviors, resulting in a regulatory gap that undermines effective adaptation (Ibrahim, 2024). Traditional retailers face high operational costs, limited digital infrastructure, and difficulties in adopting modern technologies, all of which compromise their competitiveness. This study seeks to understand the policy shortcomings and market challenges that hinder the sustainability of traditional retail, proposing actionable recommendations to bridge the digital divide (Adebola, 2025).
Objectives of the Study:
• To evaluate the impact of e–commerce growth on traditional retail sectors in Lagos State.
• To analyze the effectiveness of current policies in addressing the challenges of digital disruption.
• To propose policy recommendations for harmonizing e–commerce growth with traditional retail sustainability.
Research Questions:
• How has e–commerce growth affected traditional retail sectors in Lagos State?
• What are the main policy challenges in regulating the integration of digital and physical retail?
• What policy measures can support the resilience of traditional retail in the face of digital transformation?
Research Hypotheses:
• H1: E–commerce growth negatively impacts the performance of traditional retail sectors.
• H2: Existing policies are insufficient to address the challenges posed by digital transformation.
• H3: Policy reforms can significantly improve the integration and sustainability of traditional retail businesses.
Significance of the Study:
This study explores the transformative effects of e–commerce on traditional retail sectors in Lagos State. By evaluating current policy frameworks and identifying gaps, it provides actionable insights for creating a balanced retail environment that fosters both digital innovation and the sustainability of conventional retail (Olu, 2023; Ibrahim, 2024).
Scope and Limitations of the Study:
This study is limited to examining the impact of e–commerce growth on traditional retail sectors within Lagos State, focusing solely on policy evaluation and economic impacts.
Definitions of Terms:
• E–commerce: The buying and selling of goods and services through digital platforms.
• Traditional Retail: Conventional brick–and–mortar retail businesses.
• Policy Evaluation: The process of assessing the effectiveness of government policies and regulatory frameworks.
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