Due to new technological developments and the ongoing digitalization, the traditional retail sector is currently exposed to major challenges. Digital Retail started with the development of e-commerce, when online companies,such as Amazon, began selling products online. These major online global players are still growing much faster than their smaller European retail competitors. As the absorption of buying power through online retailers, is dominated by global players based in Asia (Alibaba, Rakuten) and the United States (Amazon, eBay), Europe is experiencing a loss in revenue.

In this highly competitive market, traditional European brick-and-mortar retailers face hard challenges. However, studies show that most customers currently do not prefer pure online retailers, but a hybrid model, since traditional stores provide them with the opportunity to experience products and to receive personal advice from experts. This paper is a contribution to on-going research on the business model transition to include digital channels in traditional retail companies and to integrate various channels that support and streamline personal customer requirements. Thus, the paper explores challenges and opportunities for omnichannel management in the digital retail industry.