The exogenous shock of COVID-19 strongly challenged Greek retail, especially in small and micro-sized enterprises (SMiEs). In particular, the decline of customer visits in physical retail stores caused by lockdowns and other restrictive measures led to a business threatening reduction of sales. As a result, adjusting business model elements became one of the first priorities for Greek business owners. This paper focuses on the effects of the COVID-19 pandemic on business model elements of Greek SMiE retailers. To investigate this impact, eight expert interviews with Greek SMiE retailers were conducted. Results show that the pandemic situation directly and indirectly affected most of the business model elements of Greek SMiE retailers. Naturally, each studied company displayed unique characteristics as well as different needs and priorities, which facilitated the specific changes in their business model in order to become profitable. However, especially opportunities offered by digital technologies, such as web shops, online advertising, and online customer engagement, were most frequently mentioned to influence business model elements. Thus, this research contributes to the existing body of knowledge in the field of business models and information systems, by providing a business owner perspective on how business model elements were adjusted to the circumstances of the COVID-19 pandemic.

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.