The retail sector, predominantly made up of SMEs, is undergoing a significant shift due to digitalisation, with many firms transitioning to hybrid retail models that combine online and physical sales. This OECD report, conducted within the Digital for SMEs (D4SME) Global Initiative, presents findings from a novel survey of SMEs in France, Germany, Italy, Japan, Korea, and Spain. Conducted in collaboration with leading e-commerce platforms—Amazon, Kakao, and Rakuten—the study captures SMEs' experiences with e-commerce, the transition to hybrid retail, and the impact of government policies.

The results highlight the increasing adoption of digital tools among retail SMEs, driven by consumer demand for flexible shopping options, particularly in the wake of the COVID-19 pandemic. While digitalisation offers growth and efficiency benefits—such as broader customer reach and streamlined payments—many SMEs face barriers, including regulatory complexity, limited digital skills, and low awareness of public support programmes.

Hybrid SMEs, managing both brick-and-mortar and online channels, encounter unique operational and strategic challenges compared to online-only firms. The report emphasises the importance of tailored policy support to enhance SMEs’ digital capabilities and underscores the role of hybrid retail in revitalising local economies. The OECD intends to expand this research to deepen understanding and improve policy responses supporting retail SME digitalisation.