Challenges and survival strategies of supermarkets in Nairobi, Kenya

Abstract

The purpose of this study was to investigate the challenges and survival strategies of Supermarkets in Nairobi, Kenya. Specifically, the study was aimed at determining the competitive challenges that are faced by supermarket in Nairobi as well as their survival strategies to deal with these challenges. The study adopted a descriptive survey research design with an aim of obtaining complete and accurate information giving precise precision in achieving the objective of the study. The population of interest included all supermarkets within Nairobi Central Business District (CBD) within a radius of 50km off Nairobi City with more than 2 branches where purposive sampling was used to select 25 supermarkets based on monthly sales of at least Ksh.150, 000. The research study entailed using both primary and secondary data. The primary data was obtained through the use of open ended questionnaires and personal information while secondary data was obtained from visiting documentaries such as the organization periodicals and magazines. Quantitative data was analyzed using the statistical package for social sciences (SPSS) while qualitative data was analyzed using content analysis. The data was then analyzed and interpreted using the descriptive statistics on frequency distribution and percentages. Tables and charts used in the study highlighted the correlation among the sets of data in the study. From the study findings it was evident that challenges from the competition and loses from the shop lifting and expiries of products as some critical challenges faced by most supermarkets to a greater extent enhance competitiveness and sustain performance, the supermarkets need to ensure appropriate measures are considered to entice customers. In most cases supermarkets the extent of supermarkets management to serve the customers influences the performance ratings by consumers. On the other hand, increase of branch network and business control mechanisms and management of upcoming financial instituitions0n financial matters did not appear to be a great challenge to the supermarkets rating at 46.67 percent and 46.66 respectively. Supermarkets seem not to care much on the financial source of capital as the increase of banks has liberalized the finance.