Analysis of the Relationships Between Online and Offline Retail Sector Returns
DOI:
https://doi.org/10.63556/tisej.2026.1691Keywords:
e-commerce, Online and offline retail sector, Retail sector returns, Causality, Asymmetric RelationshipsAbstract
Today, the retail sector is undergoing significant structural transformations driven by innovative developments and digitalization processes. Increased technological innovations and changing habits during the COVID-19 pandemic are increasing the share of online shopping in the retail sector. The rise of e-commerce in recent years has made it imperative for offline retailers to adapt to digital strategies. Interactions exist between online and offline retail sectors, which have different dynamics. Therefore, the interaction between online and offline retail, the structure of these interactions, and how they change over time have become an important research topic. Asymmetric relationships that change over time have the potential to significantly impact businesses' profitability, market value, and stock returns. The aim of this study is to fill a gap in the literature by analyzing the relationships between indices representing online and offline retail sectors globally using asymmetric frequency causality testing. The findings of the study show that online and offline retail sectors do not act independently of each other and give reciprocal and time-varying responses to shocks. In conclusion, this study makes a unique contribution to the literature by revealing the direction and changing nature of the relationship between online and offline retail sectors.
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