Thesis aims to explore the challenges to remain competitive in nowadays world where online and brick and mortar businesses are in a constant clash to remain competitive and attire the majority of customers. In the literature review I want to demonstrate that both business models are well aware of their weaknesses and try to find an optimal transition to some kind of hybrid model. These adjustments I intend to demonstrate during the literature review as I want to recap them in my conclusion to present an advice how the business model of the future ready company should look like. I use three Thesis questions where the first one is the main Thesis question and the other two acts as supportive questions to strengthen the findings. The Thesis Questions are: 1. Does the evolution of online businesses in the retail industry influence the financial performance of brick-andmortar businesses? 2. Does the evolution of e-commerce have a positive effect on the retail industry’s innovative development? 3. Does customer behaviour and the biggest generation being the Millennials have an influence on online and traditional businesses in the retail industry?
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