Abstract:Drawing data from 58 listed retail companies, this study examines the impact of online channel use on retailers’ performance using event study. The results show that the online channel provides significant improvements in sales, cost, inventory, and return on investments. We also find that, a high local presence is a significant advantage for retailers in sales growth, which means that the integration of traditional channels and online channel can promote the improvement of performance. In addition, the results show that the timing of online channel adoption does not have a significant impact on performance improvement, but area where the company locates dose.