The Implications of Digitalization in Retail Service Delivery on Circular Economy in Nigeria: An Exploratory Case Study

Abstract

The circular economy (CE) model has gained greater recognition and acceptance in recent years for its potential to enhance sustainability. Within this context, many practices in the retail sector are being overhauled through technological innovation, thereby changing the business landscape. Digitalization facilitates this transformation to mitigate the impacts of climate change without sacrificing productivity. This article explored the implications of digitalization in retail processes for CE in Nigeria and advanced practices that improve efficiency. Research efforts on circularity and digitalization have concentrated on advanced economies; consequently, little is known about the situation in lower-income countries. Due to the exploratory nature of this research, a qualitative approach that combined multiple data sources was adopted. Specifically, a case study of four major grocery retailers was carried out through documentary evidence supplemented by integrating thematic categories from semi-structured interviews with seasoned retail professionals. The findings revealed that (i) the circularity paradigm is a relatively vague concept among retailers in Nigeria; (ii) digital technologies are adopted primarily for the business value they create rather than to regenerate the ecosystem; (iii) the retailers have adopted technological processes such as e-commerce channel, automation, real-time tracking, social media marketing, and digital payment; and (iv) retailers familiar with circularity favor shortening supply chains by investing in rural hubs, food waste reduction, and closed-loops and reducing the use of non-biodegradable packaging. Retail managers could gain insights from these results to move towards CE, foster efficient business processes, and enhance customer satisfaction.