EFFECT OF STORES MANAGEMENT PRACTICES ON PERFORMANCE OF

SUPERMARKETS IN KENYA.

BPSMC01/1544/2020

A RESEARCH PROPOSAL SUBMITTED TO THE SCHOOL OF BUSINESS AND

ECONOMICS IN PARTIAL FULFILLMENT FOR THE REQUIREMENTS OF THE
AWARD OF BACHELOR OF PURCHASING AND SUPPLIES MANAGEMENT AT
THE COOPERATIVE UNIVERSITY OF KENYA

DECEMBER 2023.
 DECLARATION
Declaration by the student

I declare that this research proposal is my original work and has never been presented for the
award of a university degree in any other university or any other award.

KIBUCHI CAROLINE WANJIRU

BPSMC01/1544/2020

SIGNATURE…………………………. . DATE………………………

Declaration by the Supervisor

I confirm that the work reported in this proposal was carried out by the candidate under my
supervision and has been submitted with my approval as the University supervisor.

SIGNATURE………………… DATE…………………

DR. KAMAU MUTHONI

SCHOOL OF BUSINESS AND ECONOMICS

DEPARTMENT OF ENTERPRENEURSHIP AND ECONOMICS

THE COOPERATIVE UNIVERSITY OF KENYA

ii
 DEDICATION
I dedicate this work to the almighty God who gave me the ability to achieve and learn everything
during this period and to my family and close friends for all their support. In a special way, I also
dedicate this work to my parents for the continuous encouragement and support they extended to
me.

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 ACKNOWLEDGEMENT
All praise and thanks to the Almighty God who blessed me with the courage and made my
efforts fruitful. I also thank my parents for the words of inspiration they always gave me to make
my education a success, my course mates for their support and encouragement and a great
appreciation and gratitude to my Supervisor Dr. Kamau for his keen interest, enlightened views,
valuable suggestions, propitious guidance and constructive criticism for the successful
accomplishment of this research proposal.

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 TABLE OF CONTENTS
DECLARATION.............................................................................................................................ii

DEDICATION..............................................................................................................................iii

ACKNOWLEDGEMENT...........................................................................................................iv

LIST OF TABLES......................................................................................................................viii

LIST OF FIGURES......................................................................................................................ix

LIST OF APPENDICES...............................................................................................................x

LIST OF ABBREVIATION........................................................................................................xi

ABSTRACT.................................................................................................................................xii

CHAPTER ONE............................................................................................................................1

INTRODUCTION.........................................................................................................................1

1.1. Background of the Study.......................................................................................................1

1.1.1. Global Perspective..........................................................................................................2

1.1.2. Regional Perspective......................................................................................................3

1.1.3. Local Perspective...........................................................................................................3

1.1.4 Discussion of Variables...................................................................................................4

1.1.5 Performance.....................................................................................................................5

1.2 Statement of the Problem.......................................................................................................7

1.3 Research Objectives...............................................................................................................7

1.3.1 General Objective............................................................................................................7

1.3.2. Specific objectives..........................................................................................................8

1.4 Research Questions................................................................................................................8

1.5 Significance of the Study.......................................................................................................8

1.6 Scope of the study..................................................................................................................9

1.7 Definition of Terms................................................................................................................9

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CHAPTER TWO.........................................................................................................................11

LITERATURE REVIEW...........................................................................................................11

2.0 Introduction..........................................................................................................................11

2.1 Theoretical review................................................................................................................11

2.1.1 The Lean Theory...........................................................................................................11

2.1.2 Just in Time Theory.......................................................................................................11

2.1.3 Supply Chain Management (SCM) Theory...................................................................12

2.2 Conceptual Framework........................................................................................................13

Figure 2.1 Conceptual Framework.............................................................................................13

2.2.1 Safe Handling of Materials and prevention of breakages.............................................13

2.2.2 Efficient Stock Control Practices..................................................................................14

2.2.3 Keeping Accurate Inventory Records...........................................................................14

2.2.4 Performance of Supermarkets in Kenya........................................................................15

2.3 Empirical Literature Review................................................................................................16

2.3.1 Safe Handling of Materials and Prevention of Breakages............................................16

2.3.2 Efficient Stock Control Practices:.................................................................................16

2.3.4 Keeping Accurate Inventory Records:..........................................................................18

2.4 Critique of Literature...........................................................................................................19

2.5 Summary of the literature....................................................................................................20

2.6 Research Gap.......................................................................................................................20

CHAPTER THREE.....................................................................................................................22

RESEARCH METHODOOGY..................................................................................................22

3.0 Introduction..........................................................................................................................22

3.1 Research Design...................................................................................................................22

3.2 Population of the study........................................................................................................22

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 3.3 Target population of the study.............................................................................................22

3.4 Sampling Frame...................................................................................................................23

3.5 Sample technique and sample size.......................................................................................23

3.6 Data Collection Instruments.................................................................................................23

3.7 Data collection Procedures...................................................................................................23

3.8 Data Analysis.......................................................................................................................24

REFERENCES............................................................................................................................25

APPENDICES..............................................................................................................................27

APPENDIX I: QUESTIONARE.............................................................................................27

APPENDIX II: WORKPLAN SCHEDULE..........................................................................31

APPENDIX III: BUDGET FOR THE STUDY.....................................................................32

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LIST OF TABLES

viii
 LIST OF FIGURES
Figure 2.1 Conceptual Framework.................................................................................................

ix
 LIST OF APPENDICES
I Questionnaire

Ii Work plan Schedule

Iii Budget for the study

x
 LIST OF ABBREVIATION
EOQ Economic Order Quantity
FIFO First in First Out
JIT Just in Time
LIFO Last In Fast Out
RFID Radio-frequency identification
SCM Supply Chain Management

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 DEFINITION OF TERMS
Stores Management Practices: These are the policies and procedures employed by supermarkets
to manage the physical storage, inventory control, distribution, and overall efficiency of their
stores.

Safe Handling of Materials: This refers to the careful and responsible handling of products and
goods within a supermarket to minimize damage and losses, ensuring the products remain in
good condition.

Prevention of Breakages: Refers to the strategies and practices implemented by supermarkets to

minimize damage and breakage of products, which can result in financial losses and customer
dissatisfaction.

Efficient Stock Control Practices: These are methods and procedures used by supermarkets to
manage their inventory, ensuring that the right quantity of products is available at the right time
to optimize sales and reduce costs.

Keeping Accurate Inventory Records: This involves maintaining precise and up-to-date records
of the products and goods a supermarket has in stock to facilitate effective inventory
management.

Performance of Supermarkets: Refers to the overall success and efficiency of a supermarket in

terms of financial performance, customer satisfaction, and operational effectiveness.

Retail Industry: The sector that involves the sale of goods or services directly to consumers.

Consumer Demand: The preferences and needs of customers in terms of the products and
services they seek from a supermarket.

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 ABSTRACT
This research aims to investigate the impact of store management practices on the performance
of supermarkets in Kenya, with a focus on three specific objectives: To determine the effect of
safe handling of materials and the prevention of breakages on supermarket performance, to
examine the importance of efficient stock control practices in influencing the overall
performance of supermarkets and to evaluate the impact of maintaining accurate inventory
records on effective store management practices and its subsequent influence on supermarket
performance. The theoretical framework guiding this research includes the Lean Theory, Just-in-
Time Theory, and Supply Chain Management Theory. The study adopts a descriptive survey
design to systematically collect and analyze data. The target population consists of 30 employees
encompassing the Procurement department, store managers, storekeepers, and the Accounting
and Finance department. To ensure a fair representation, the study employs simple random
sampling as the sampling technique. This approach provides every member of the target
population with an equal chance of being selected for participation. Data collection will be
carried out using open-ended questionnaires, interviews, and secondary data obtained from
supermarket books and journals. The data analysis will employ descriptive data analysis
methods, presenting findings through percentages, tables, charts, and frequency distributions.

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 CHAPTER ONE
INTRODUCTION
Supermarkets play an important role in the Kenyan economy, providing employment and
contributing to government revenue. However, the Kenyan supermarket industry is highly
competitive, and supermarkets must constantly innovate and improve their operations in order to
remain successful. Adopting effective stores management practices is one of the ways in which
supermarkets can improve their performances in order to gain competitive advantage. Store
management practices refer to the policies and procedures that supermarkets use to manage their
physical stores. These management practices include, stock control, safe handling of materials
and keeping of accurate inventory records.

1.1. Background of the Study

1.1.1. Global Perspective

Inventory management and planning technologies have been employed in global business
operations for years. Developed economies such as China and the United States have long relied
on these systems to maintain their competitiveness. It's high time for developing-country
supermarkets in Kenya and beyond to adopt comprehensive inventory management systems to
gain a competitive edge (Rajeev, 2016). Maintaining buffer stocks of raw materials, work in
progress, and finished products is essential to prevent shortages. Efficient management of stock,
especially of finished goods, minimizes space usage, reducing inventory-related costs and
enhancing overall supermarket operations (Dimitrios, 2016).
Literature suggests that many organizations have successfully integrated inventory monitoring
and scheduling systems into their operations. For instance, research conducted in the United
States found that the Just in Time (JIT) System significantly improved the performance of
manufacturing companies by enhancing customer satisfaction without the associated costs and
challenges of traditional inventory management (Barby, 2016). Factors like product type,
supplier relationships, and data management control can also significantly impact a
supermarket's efficiency.
Inventory Management techniques have been employed in japan after the second world war in
Japan in the manufacturing industry by the Toyota manufacturing company, as the company tried
to cut cost by inventory management. This resulted to the success of the Toyota Group
becoming the largest automobile manufacturer in the world for the first time in 2008. The

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founder, Kiichiro Toyota of Toyota Motor Company (TMC), was of the opinion that the best
way to survive in assembly line automobile manufacturing is by having all the parts for assembly
at the side of their line just-in-time for use (Ohno, 1987).

1.1.2. Regional Perspective

In the Eat African region, inventory monitoring and scheduling systems are essential for
enhancing the performance and competitiveness of supermarket. Many firms, especially
manufacturing companies in emerging economies like Uganda face inventory control and
holding challenges.

Many of super market owners do not understand the significance of proper stores management
and tend to believe that the supermarkets will get better on their own, hence leading to a low
financial performance of super market in Kampala (Sawaya, 2016)Advanced inventory
monitoring and scheduling systems are necessary to reduce inventory costs and improve overall
company performance, making management increasingly aware of the strong link between
inventory status and company operations (Stanton, 2016).

As in most African countries, the informal sector plays a very large role in Tanzania's urban food
retail markets (Rominik, 2008). The sector’s positive attributes cater to the needs of lower
income urban dwellers by offering flexibility that enables quick response to price changes,
willingness to collect goods from remote producers, and low profit margins that keep food prices
affordable (Nord et al., 2009; Rominik, 2008). Furthermore, the ownership of refrigerators
immediately following the ERPs was scarce, making the ability to shop on a weekly or monthly
basis not realistic for most households (Reardon et al., 2008). This limited consumer demand for
bulk buying and supported informal retailers as opposed to supermarket.

1.1.3. Local Perspective

In Kenya, numerous businesses, including major enterprises and supermarkets, have embraced
inventory tracking and scheduling systems to enhance their organizational effectiveness and gain
a competitive edge (Nyabwanga & Ojera, 2012).New supermarkets in the country continue to
adopt these systems, leading to improvements in customer service, overall company efficiency,
and retail firm performance (Irungu and Wanjau, 2014). This indicates that inventory planning

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and management systems are becoming increasingly integral to the operations of Kenyan
retailers and businesses.

Industrial production firms in Kenya face fierce competition and must employ effective
inventory control and assessment techniques to thrive. This involves reducing waste in
manufacturing, minimizing holding costs, and lowering ordering costs. Many businesses in
underdeveloped countries like Kenya are implementing inventory tracking and scheduling
initiatives to ensure their survival and market competitiveness (Kenya Association of
Manufactures, 2016).

In Kenya six iconic giant supermarkets have collapsed. The fallen retail giants include Uchumi,
Nakummat, Ebrahim’s, Ukwala, Choppies, and Tuskys supermarket. The six retail stores were
dominant market leaders but they are dead and forgotten because of poor financial decisions,
management disputes, poor customer target, theft of products and cash by the employees,
supermarket owners, an audit carried out by financial consulting company KPMG revealed that
huge quantity of goods from several suppliers were neither ordered or supplied to Uchumi
(Njue,2019)

1.1.4 Discussion of Variables

Stores Management Practices.

Store management practices is a range of activities, including proper storage, inventory control,
distribution of items, and the maintenance of accurate records. These practices are crucial for the
functioning of retail operations Miller and Patel (2018). Efficient store management ensures an
uninterrupted supply of commodities at the lowest possible cost, making it an essential
component for firms operating in the highly competitive retail sector. In such a competitive
landscape, gaining a competitive advantage is very important, and effective store management
practices play an important role in achieving this goal.

One of the key ways store management practices contribute to gaining a competitive advantage
is through the maintenance of reasonable stock levels. This strategy minimizes the amount of
capital required, optimizing financial resources for other strategic investments Obote, (2019).
Additionally, store management practices aid in waste reduction by preventing breakages during
storage and distribution processes. This not only aligns with sustainable business practices but

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also leads to cost savings and improved overall efficiency .Moreover, accurate record keeping as
part of store management practices helps reduce discrepancies in stock, ensuring that the
inventory reflects the actual available products.

Store management practices are indispensable for firms seeking a competitive edge in the retail
sector. From maintaining optimal stock levels to preventing waste and minimizing discrepancies,
these practices enhance operational efficiency, reduce costs, and contribute to overall
profitability. As organizations continue to navigate the challenges of the retail landscape, a
strategic focus on efficient store management becomes not only a necessity but a pathway to
sustained success Eaton, (2018)

1.1.5 Performance.

Organizational performance, defined as the ability of an organization to achieve its goals and
optimize results, is a multifaceted concept influenced by various internal and external factors Tad
(2018). Internal factors, is important to the organization itself, play a significant role in shaping
performance outcomes. For supermarkets in Kenya, these internal factors entails variables such
as the organization's size, profitability, customer satisfaction levels, and competitiveness within
the retail sector. A supermarket's size may affect its operational scale and efficiency, while
profitability directly correlates with financial health. Moreover, customer satisfaction levels are
crucial indicators of how well the supermarket meets consumer needs, contributing to overall
organizational success.

External factors also influence organizational performance, especially in the context of

supermarkets in Kenya. Political instability can create uncertainties that affect supply chains,
economic conditions, and overall business operations Ben et al. (2019). Government policies,
including regulations on store management practices, can directly impact the efficiency and
competitiveness of supermarkets. Additionally, technological factors, such as advancements in
inventory management systems and online retail platforms, can either enhance or challenge a
supermarket's performance in the dynamic Kenyan market.

In this study on effect of store management practices on the performance of supermarkets in

Kenya, it is crucial to recognize the intricate interplay between internal and external factors.
Effective store management practices, including inventory control and accurate record-keeping,

4
can positively influence internal factors like profitability and customer satisfaction, thereby
contributing to enhanced organizational performance. The impact of these practices may be
contingent on external factors such as government policies and technological advancements. A
comprehensive understanding of the interconnected dynamics between store management
practices and the broader organizational environment is essential for supermarkets to navigate
the complex landscape and optimize their performance in Kenya's retail sector.

1.1.6 Supermarkets.

Supermarkets in Kenya constitute a diverse retail landscape, featuring a larger group of

establishments catering to the varying needs of consumers. These retail spaces are self-service
shops that offer an extensive range of products, including food, beverages, and household items,
organized into distinct sections for easy navigation Vuala, (2019). Among the prominent players
in the Kenyan supermarket industry are international chains such as Carrefour and Chandarana,
local chains like Naivas and Clean shelf, as well as smaller supermarkets like Quickmart. The
coexistence of these diverse supermarket types reflects the dynamic nature of the Kenyan retail
market, providing consumers with a range of choices based on factors such as convenience,
product variety, and pricing.

The Kenyan supermarket sector has witnessed both resilience and challenges, with certain
establishments standing the test of time while others, such as Uchumi and Nakumatt, faced
financial difficulties and ultimately closed down. This variance in outcomes shows the critical
role of effective store management practices in determining the longevity and success of
supermarkets in Kenya (Karim, 2018). Successful supermarkets often exhibit robust store
management practices that includes efficient inventory control, strategic pricing, and customer
satisfaction initiatives. In contrast, the challenges faced by those that have ceased operations may
be linked, in part, to shortcomings in their store management strategies, highlighting the
importance of understanding and implementing effective practices in this competitive retail
environment.

The impact of store management practices on the performance of supermarkets in Kenya is

profound, influencing not only the survival of individual establishments but also shaping the
overall dynamics of the retail sector. A comprehensive study of these effects is crucial for
stakeholders, including supermarket owners, policymakers, and consumers, to gain insights into

5
the factors contributing to the success or challenges faced by supermarkets in Kenya. By
examining the interplay between store management practices and performance outcomes, the
industry can derive valuable lessons that may inform future strategies and contribute to the
sustainability and growth of supermarkets in this dynamic market.

1.2 Statement of the Problem.

Stores management practices is a wide range of activities related to inventory control, stock
replenishment, and overall operational efficiency within a supermarket. This problem is
significant as supermarkets are vital players in the Kenyan retail industry. Their performance not
only influences the national economy but also affects the consumers shopping experience. The
existing literature presents several gaps in understanding the relationship between stores
management practices and the performance of supermarkets in Kenyan. There hasn't been
enough thorough research in Kenya that looks specifically at how the way supermarkets manage
their stores affects how well they do J M Mutegi (2013).

However, there exists some research on how supermarkets perform in Kenya which often
doesn't go into detail about the specific things stores need to manage their goods. The business
sector in Kenya has also been changing rapidly over the years with increase in number of
supermarkets which in turn increases the competition and changes in consumers shopping habits.
These changes make it challenging for supermarkets, and we need to understand how their store
management practices fit into this new landscape. It's really important for supermarkets to run
efficiently. Being efficient can help them minimize in cost and maximize in profit, which is very
important developing country like Kenya where profits can be slim. However, we don't know for
sure how well supermarkets are using good store management practices and how it affects how
well they do in the market hence, this is a problem that needs solved.

Given the evolving global dynamics different types of supermarkets exists in Kenya, from small
local ones to big international chains. There is need to look at them differently to see how store
management practices affects each of them. Lastly, technology has changed a lot and We need to
see how much Kenyan supermarkets are using technology and if it helps them (Irungu and
Wanjau, 2014). In conclusion, research on effects of stores management practices on
performance of supermarkets in Kenya should be carried out.

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1.3 Research Objectives
1.3.1 General Objective
The main aim of the research is to determine the effect of stores management practices on the
performance of supermarkets in Kenya.

1.3.2. Specific objectives

i. To determine the impact of safe handling of materials and prevention of breakages and its
effect on performance of supermarkets in Kenya.

ii. To examine the importance of efficient stock control practices on the performance of
supermarkets in Kenya.

iii. To determine the impact of keeping accurate inventory records on the performance of
supermarkets in Kenya.

1.4 Research Questions

i. What is the impact of safe handling of materials and prevention of breakages on
performance of supermarkets in Kenya?

ii. How does efficient stock control affect the performance of Kenyan supermarkets?

iii. How keeping of accurate inventory records affect the performance of supermarkets in
Kenya?

1.5 Significance of the Study.

The significance of the study on the "Effect of Stores Management Practices on the Performance
of Supermarkets in Kenya" and extends to various stakeholders, including the retail industry,
supermarket operators, and consumers.

The retail industry in Kenya, by investigating the relationship between stores management
practices and supermarket performance, the study can provide valuable information on how
supermarkets can improve their operational efficiency, enhance customer satisfaction, and
remain competitive. Such insights are critical in a rapidly evolving sector where customer
preferences, market dynamics, and global influences continually shape the landscape.

Supermarket operators, the research offers practical guidance. The findings can help them
identify areas where improvements in stores management practices can lead to better
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performance outcomes, such as increased profitability and customer loyalty. This knowledge is
essential for making informed decisions and investments in an industry where margins can be
tight and competition is fierce.

Lastly, consumers stand to gain from this research. Effective stores management practices can
result in improved product availability, better pricing, and a more convenient shopping
experience. By exploring the impact of these practices, the study indirectly addresses consumers'
interests in receiving quality products and services.

1.6 Scope of the study

The scope of this study focuses specifically on the Supermarkets, situated within the Kenyan
retail sector. The research will extensively examine the impact of stores management practices
on the performance of supermarket, considering factors such as safe handling of materials, stock
control, and inventory management. While the findings may offer valuable insights applicable to
the retail sector, and how to gain competitive advantage in the highly competitive and evolving
sector. The primary emphasis of the study aims at providing detailed and actionable
recommendations that can benefit both Supermarkets and the broader retail industry in Kenya.

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 CHAPTER TWO
LITERATURE REVIEW

2.0 Introduction

This chapter provides an overview of the existing literature related to the effect of stores
management practices on the performance of supermarkets in Kenya. The literature review is
organized into several sections, each focusing on specific aspects of the research topic, including
safe handling of materials and prevention of breakages, efficient stock control practices, and
keeping accurate inventory records.
2.1 Theoretical review

2.1.1 The Lean Theory

Lean theory is a systematic approach to enhancing overall utility of a firm's stock by recognizing
and eradicating waste of resources, material, labour, and time while striving for excellence
Womack and Jones (1996). Lean thinking decreases waste in the production process by
eliminating buffer stock. Inventory leanness is the most inventories - control approach available
and has a major effect on a company's productivity.
The Lean practices often prioritize speed and cost-cutting Krafcik (1998). This might make
workers to rush or overlook safety measures, increasing the risk of material mishandling and
breakages the focus on streamlining processes often leaves little room for safety precautions and
error tolerance. This results to potential accidents and product damages.

Research on safe material handling and breakage prevention is crucial because it addresses these
shortcomings. Investigating how lean practices can be adapted to include safety measures and
breakage prevention is relevant. The research will help organizations strike a balance between
efficiency and safety, ultimately benefiting both workers and the organization by reducing
accidents, preserving resources, and improving overall performance (Galaston 2020).

2.1.2 Just in Time Theory

Just-in-Time (JIT) theory is a manufacturing and inventory management approach where
products are produced or received only when needed. This theory aims to reduce waste, cut
costs, and improve efficiency by having supplies arrive "just in time" for use, avoiding excess
inventory storage and associated holding cost. JIT system was initiated, with full deployment of

9
the kanban pull system by 1962 by Taiichi Ohno (“Father of JIT”) in the Toyota manufacturing
company Schonberger, R. J. (1982)

JIT can help minimize storage costs and reduce the risk of perishable goods going to waste. This
results to potential risks such as the risk of stock outs which may slow down the production
process. Slight changes in consumer demands also affects the customer’s satisfaction especially
in cases where demand is higher than the supply Pinto aetl (2018).

JIT aligns with the stock control practices of Kenyan supermarkets and its overall impact on their
performance. This research will help provide determine whether JIT principles need to be
adapted to suit the local market conditions and can contribute to more efficient stock control
strategies in the Kenyan supermarket sector. Kinyua , B.K (2015)

2.1.3 Supply Chain Management (SCM) Theory

Supply Chain Management (SCM) theory focuses on optimizing the flow of products,
information, and finances within a supply chain network. It emphasizes the coordination and
collaboration between different entities in the supply chain, including suppliers, manufacturers,

and retailers, to achieve efficiency and effectiveness Nieuwenhuis (2016) .

SCM theory assumes that there is a highly organized and well-connected supply chain network,
which may not always reflect the reality of supermarkets in developing countries like Kenya.
Issues related to infrastructure, supplier reliability, and regulatory challenges can impact the
applicability of SCM theory Hitt, M. A (2011).
SCM theory is relevant to the study because it highlights the importance of efficient stock
control and accurate inventory records, which are essential components of stores management
practices in supermarkets. It can help explain how effective stores management practices can
enhance the coordination and performance of the supply chain within the supermarket industry in
Kenya (Chopra & Meindl, 2007).

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2.2 Conceptual Framework
The conceptual framework for the study comprises independent variables that is stores
management practices, including safe handling of materials and prevention of breakages,
efficient stock control practices, and keeping accurate inventory records. The dependent variable
in this framework is the performance of supermarkets in Kenya.
Independent variables Dependent variables

Safe handling of materials and

prevention of breakages

 Training and Education

 Use of Material Handling
Equipment
 Proper storage and labelling

Performance of supermarkets in
Efficient stock control practices
Kenya
 Just in time
 Financial Performance
 Economic order Quantity
 Level of customer
 FIFO and LIFO
satisfaction
 The competitive positioning

Keeping accurate inventory

records

 Barcoding and RFID

technology
 Regular audits and stock
taking
 Digital inventory
management system

Figure 2.1 Conceptual Framework

2.2.1 Safe Handling of Materials and prevention of breakages
Training and Education: Providing training and education to store personnel on proper material
handling techniques and safety protocols is crucial. This includes teaching employees how to lift

11
heavy objects using proper body mechanics, how to use handling equipment such as forklifts,
and how to identify and handle hazardous materials safely. Regular refresher training can help
reinforce these practices Averina et al (2019).

Use of Material Handling Equipment: Employing appropriate material handling equipment like
pallet jacks, forklifts, and conveyor systems can significantly reduce the physical strain on
employees and minimize the risk of injuries. Ensuring that equipment is well-maintained and
regularly inspected for safety is also important Stephens et al., (2019).
Proper Storage and Labeling. Organizing and storing materials in a well-planned and systematic
manner can prevent accidents and damage. This includes using appropriate shelving, racking,
and bins, as well as labeling items with clear identification to avoid confusion. Properly
segregating hazardous materials from non-hazardous ones and following safety data sheet (SDS)
guidelines for chemical products are also crucial. Lupien, J. R. (2005).

2.2.2 Efficient Stock Control Practices

Just-in-Time (JIT) Inventory: JIT is a stock control method that focuses on minimizing excess
inventory and holding costs. It aims to have inventory arrive just when it's needed for production
or sale. By reducing carrying costs and the risk of obsolete inventory, JIT inventory management
can improve cash flow and operational efficiency. Musara, M. (2012).
Economic Order Quantity (EOQ): EOQ is a formula-based approach to determining the optimal
order quantity that minimizes the total inventory costs, including ordering costs and carrying
costs. By calculating the EOQ, stores can make orders that balance the cost of ordering and the
cost of holding inventory. This minimizes overstocking and understocking, leading to cost
savings Heaveside (2020).
FIFO (First-In, First-Out) and LIFO (Last-In, First-Out): These are inventory valuation methods
that also impact stock control. FIFO assumes that the oldest items are sold or used first, while
LIFO assumes that the newest items are used first. Choosing between these methods can affect
how stock is managed, and impacting holding cost Khan et al (2018)

2.2.3 Keeping Accurate Inventory Records

Barcoding and RFID Technology: Implementing barcoding or radio-frequency identification

(RFID) technology can enhance accuracy in stores management. Each item is assigned a unique
code or tag, and these codes are scanned when items are received, issued, or transferred. This

12
minimizes manual data entry errors and helps maintain precise records of stock movement
Kaakkurivaara, N. (2019).
Regular Audits and Stock taking: Conducting regular audits and stock taking is a practice of
physically verifying the inventory on hand. This involves counting a subset of items or sections
of the store at scheduled intervals. Discrepancies between the physical count and the recorded
count are then investigated and corrected. These periodic checks help identify and rectify any
inaccuracies in the store records and ensure that the data is up to date Datta, A. (2021).
Digital Inventory Management Software: Use digital inventory management software that
provides real-time tracking and reporting capabilities. These systems allow for the centralization
of store records, making it easier to monitor stock levels, track item movement, and generate
reports. They can also incorporate features like reorder point setting and vendor management to
enhance overall stores management Niaz, M. (2022).

2.2.4 Performance of Supermarkets in Kenya

Financial performance: is an important aspect, evaluating economic success through metrics like
revenue, profit margins, return on investment, and cost-efficiency. A strong financial
performance indicates a supermarket's ability to generate revenue, manage costs, and provide
value to its stakeholders Franco (2020)
The level of customer satisfaction: is used in assessing performance. It reflects how well a
supermarket meets its customers' needs and expectations. Through efficient and effective stock
control practices supermarkets are able to achieve customer satisfaction by ensuring that goods
are don’t run out of stock and are available in good condition. This helps the supermarkets earn
customer loyalty by continuously meeting and exceeding their expectations Gunawan, I. (2022).
The competitive positioning: of a supermarket is an important component of its performance. In
a highly competitive sector the firm has to make sure that it gains competitive advantage over the
others in order to make profit. This considers factors like market share, market presence, and
differentiation from competitors. Supermarkets with a high competitive advantage are more
likely to make more profits Wilkins, S. (2020).

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2.3 Empirical Literature Review

2.3.1 Safe Handling of Materials and Prevention of Breakages.

Bryan, (2002) carried out a study in the US to determine the effectiveness of manager training
and how this training impacted the grocery stores’ performance related to hot/cold self-serve
bars. Three grocery store chains were recruited and each chain selected 15 stores to be observed
pre- and post-training during set-up, lunch, and tear-down of the bars. After the pre-training
observation, managers from eight stores per chain attended a food safety training course (training
group), while managers from the remaining seven stores received no additional training (control
group) archers have found that adequate food safety training of all employees can positively
impact food safety in the retail food industry Cohen et al. (2001).
Ndlovu and Dlamini (2019) carried out a study in South Africa. Descriptive method of research
design and targeted store managers and employees. Their study emphasized on the necessity of
proper training and the use of equipment, such as forklifts, in minimizing accidents and product
damages. They discovered that supermarkets that invested in staff training and equipment
maintenance had a lower incidence of material breakages. Similarly, a study in Nigeria by
Adekunle and Eze (2017) showed that supermarkets that adhered to strict safety protocols and
provided continuous training to employees experienced improved performance, especially in
terms of reduced financial losses due to breakages.
In their study, Chesula and Nkobe (2018) aimed to investigate the influence of safe handling
practices on the performance of supermarkets. The research was designed using a quantitative
approach, incorporating surveys and data analysis, and targeted supermarket employees and
managers as the study population. The findings revealed the critical importance of adopting safe
handling practices in supermarkets to prevent product breakages and losses. Such mishandling
not only poses a risk of financial losses but also results in customer dissatisfaction. In
conclusion, the research highlighted the significant impact of safe handling practices on
supermarket performance and recommended the implementation of comprehensive staff training
in this aspect to enhance overall efficiency.

2.3.2 Efficient Stock Control Practices:

Sahil (2017) Carried out a research to determine the various implications that are faced by
Toyota Production System based on Just-in-Time System. He carried out a case study on three

14
major shutdowns of Toyota Company in Japan. He applied both quantitative and qualitative
methods to carry out his research. The findings revealed that Just-in-Time system stressed more
on the importance to increase production efficiency and decreasing the wastage of by buying
goods only if they are required in the production process, which helps in lowering down
inventory costs Monden (2012).
In Nalubowa, R. (2021) study on the effect of Inventory Management techniques on Service
Delivery in public sectors of Uganda-while focusing on Civil Aviation Authority, Entebbe-
Uganda as a Case Study. Which was directed by three explicit objectives: to examine how
inventory analysis techniques affects service delivery, to assess the effect on stores control
techniques on service delivery, and to establish the effect inventory counting system techniques
on service delivery in Civil Aviation Authority. The study embraced a case study research design
using both qualitative and quantitative methods integrating descriptive and inferential statistics.
The target population of the study was CAA staff, from which a sample of 86 respondents was
determined with the use of both purposive and simple random sampling techniques where a
response rate of (94%) was obtained. Questionnaires and interviews raw data obtained was
analyzed. In relation to inventory analysis the use of ABC technique has been critical to the
operational performance of the organization hence improved service delivery to the customers,
optimized supply chain efficiency, lowered operating costs, and meet customer service targets
with the use of EOQ. It was concluded that the process of stock counting at CAA was tedious
and boring exercise that demands for employees' proper motivation to ensure its success.
Nyabwanga & Ojera, (2012) carried out a study of 71 selected manufacturing companies and
129 commercial firms in Kisii County. The primary data was collected using structured and
semi-structured questionnaires administered to key informants in the organizations. Secondary
data was obtained from annual financial performance statements. Descriptive statistics was used
to test the impact of inventory management practices and Correlation analysis was used to
determine the nature and magnitude of the relationship among inventory management variable
They discovered that roughly 70% of the firms and businesses studied had implemented
inventory monitoring and scheduling systems in their operations, giving them a competitive edge
.Efficient stock control practices were instrumental in reducing holding costs, minimizing waste,
and enhancing overall company performance.

15
2.3.4 Keeping Accurate Inventory Records:

Bradford & Grey (2019) conducted a comprehensive study in the United States to investigate the
impact of inventory management practices on business performance. The research design
involved a mixed-method approach. Surveys and interviews were used to collect data from a
sample of businesses, including supermarkets accuracy and business. The target population in
this study included various businesses in the United States, ranging from supermarkets to
manufacturing and distribution companies. The findings of this study indicated that businesses
using digital inventory management software reported more accurate and up-to-date records of
stock movement. These practices were associated with improved stock control, reduced
operational costs, and enhanced overall business performance.
Reinhardt (2021) conducted a research study in South Africa to examine the impact of inventory
record-keeping practices on supermarket performance. The research design involved a mixed-
method approach, combining surveys and on-site audits of supermarkets. Data was collected on
the frequency of regular audits and stocktaking, the identification of inaccuracies in store
records, and the overall impact on supermarket operations. The study's target population
comprised various supermarkets and retail stores in South Africa. The findings indicated that
regular audits and stocktaking played an important role in verifying the inventory on hand,
leading to the identification and rectification of discrepancies in store records. This contributed
to reducing losses, enhancing supply chain efficiency, and positively affecting supermarket
performance.
Njeri and Omondi (2022) revealed that keeping accurate inventory records significantly
influences the performance of supermarkets in the country. the general objective of this study,
which is to evaluate the impact of these practices on supermarket performance. The research
design involves a mixed-method approach, including surveys and interviews. The population of
the study includes various supermarkets across Kenya Supermarkets that adopted advanced
technologies like barcoding and digital inventory management software demonstrated enhanced
accuracy in stock management. They found out that, those that conducted regular audits and
stocktaking reported fewer discrepancies in inventory records. The study indicated that
supermarkets that maintained precise inventory records showed improved overall performance,
including increased profitability and customer satisfaction
2.4 Critique of Literature

16
Bryan (2002) study conducted in the US to assess the effectiveness of manager training in the
context of grocery stores and their hot/cold self-serve bars. The pre- and post-training
observations in multiple grocery store chains. It offers valuable practical insights into the impact
of food safety training on retail food industry performance, providing a basis for enhancing food
safety. While it mentions the number of stores and the pre- and post-training observations, it
doesn't provide enough information about the measures, statistical analysis, or the actual impact
on food safety. This lack of detail makes it difficult to assess the study's validity and applicability
to a broader context.

Ndlovu and Dlamini's (2019) research in South Africa focuses on the importance of training and
equipment maintenance in reducing accidents and material breakages in supermarkets. The study
adds valuable information to the field of safety and material handling in a retail context. It shows
the direct relationship between staff training and reduced financial losses, which is a significant
positive outcome.

Chesula and Nkobe's (2018) study emphasizes the importance of safe handling practices in
supermarkets. The study also highlights the significant impact of safe handling practices on
financial losses and customer satisfaction, underlining the practical implications for supermarket
management . Chesula and Nkobe’s (2018) does not provide the sample size or the response rate
to their surveys, which is important for evaluating the representativeness of their findings. The
study also doesn't discuss any potential limitations of their research design or potential sources of
bias.

Sahil (2017) the JIT inventory management systems applied in Japan helps the toyota
manufacturing company gain competitive advantage over the other firms which resulted to their
success and they competitors started to wonder what was contributing to their success and started
adopting the same system. Sahil (2017) JIT system is that it can slow down the production
process in cases where the firm runs out of production materials especially when there is an
increase in demand. JIT may also result to customer dissatisfaction when the suppliers fail to
deliver the products in time. Continued customer dissatisfaction leads to loss of customers which
in turn decreases the competitive advantage of the supermarket .

Njeri and Omondi (2022) The adoption of technology helped the supermarkets keep accurate
inventory records. This contributed to the success of these supermarkets. They help the

17
supermarkets minimize cases of discrepancies in stock. Njeri and Omondi (2022) research
however does not go into details in explaining the challenges the supermarkets are facing in
adopting this inventory planning and management systems and how to overcome them. The
research also does not specify the specific systems that are fit for use by these supermarkets

From the above examples it is clear that the literature contains relatively limited number of
studies on each variable. This increases the need for further research is necessary to confirm and
expand on the existing knowledge especially on small local supermarkets. Different researchers
have also applied different research designs, which makes it challenging to directly compare

2.5 Summary of the literature

The literature on the impact of store management practices on the performance of supermarkets
in Kenya provides valuable information on factors that influence the efficiency and
competitiveness of supermarkets. The literature primarily focuses on three key variables: safe
handling of materials and prevention of breakages, efficient stock control practices, and keeping
accurate inventory records Melas et al., (2011).

Efficient stock control practices play a major role in optimizing supermarket operations.
Businesses embracing inventory tracking and scheduling systems have experienced improved
organizational effectiveness, reduced holding costs, minimized waste, and enhanced overall
company performance. This helps in increasing the competitive advantage Doe (2018).

Keeping accurate inventory records is a very important store management practice. New
supermarkets adopting inventory planning and management systems have seen improvements in
customer service, overall efficiency, and retail firm performance. These inventory systems help
them centralize all store records, which, in turn, reduces cases of discrepancies Turner (2019).

2.6 Research Gap

The study by Bryan (2002) assessing the effectiveness of manager training lacks crucial details
on measures, statistical analysis, and the actual impact of food safety training on retail food
industry performance (Bryan, 2002). Future research should delve into these aspects to provide a
comprehensive understanding of the implications of food safety training in grocery store settings.

Chesula and Nkobe's (2018) study emphasizes the importance of safe handling practices in
supermarkets but falls short in providing essential information such as sample size, response rate,

18
potential limitations, and sources of bias (Chesula & Nkobe, 2018). Further research should
address these gaps to enhance the robustness and generalizability of findings related to safe
handling practices.

While Njeri and Omondi (2022) discuss the positive impact of technology adoption on inventory
record accuracy, the research lacks details on challenges faced by supermarkets in adopting
inventory planning and management systems, as well as specific recommendations for suitable
systems (Njeri & Omondi, 2022). Future studies should explore the obstacles and solutions
related to technology adoption in the supermarket context.

Sahil (2017) highlights the success of the Just-In-Time (JIT) inventory management system in
Japan but notes potential drawbacks. However, the discussion lacks depth regarding the
challenges faced by firms implementing JIT systems and how they can mitigate associated risks
(Sahil, 2017). Further research should delve into the practical implications and limitations of JIT
systems in the supermarket industry.

19
 CHAPTER THREE
RESEARCH METHODOOGY

3.0 Introduction
This chapter outlines the methodology that will conduct the study. In this section, the research
will identify the procedures and techniques that will be used in the collection, processing, and
analysis of data. Specifically, this section entails research design, study area, target population,
sampling design, data collection and procedure, Data analysis and presentation and data analysis.

3.1 Research Design

Research design is a plan that provides the underlying structure to integrate all elements of a
quantitative study so that the results are credible, free from bias and maximally generalizable
(Dannels, 2018). There are five types of research designs that is Descriptive, experimental,
diagnostic and explanatory Kazdin, A. E. (2021). Descriptive survey design will be used in this
study. Descriptive methods are widely used to obtain data useful in evaluating present practices
and providing a basis for decision-making Bell (2008).

3.2 Population of the study

The population of the study is the total number of elements, objects or unit that display common
features and can be used to investigate a particular problem (Novikov and Novikov.2013). There
are two main types of population: the accessible population and the target population. The
accessible population consists of elements that are available and accessible for the study, while
the target population is the entire group to which the researcher wants to generalize the study`s
results S. J. (2021). This study will adopt target population which will be local chain supermarket
in Kenya. It will be suitable because it has been successful in the retail industry over the years
thus will enable generalization.
3.3 Target population of the study
Target population is defined as a certain group of people or items having shared physical features
which researcher is attracted in assessing (Mugenda &Mugenda, 2012). (song & H, 2022) argued
that there are two main types of target population. These includes finite and infinite target
population. This study adopted finite where it will focus on Naivas supermarket Rongai branch.
It will be suitable because its management system is centralized.

20
3.4 Sampling Frame
(Creswell & Creswell, 2018) argue that sampling frame is a list of all the elements in the population
from which a sample is to be drawn. (song & H, 2022) found out that there are two types of
sampling frames. Includes probability and non- probability. This study adopted simple random
sampling frame based on probability approach. This will be suitable because this gives every
member of the target population an equal chance of being selected. This will comprise
individuals directly involved in the daily operations and decision-making processes of the
supermarket. This includes store managers, department heads, procurement officers, and finance
personnel.

3.5 Sample technique and sample size.

A sample is smaller group or sub group obtained from the accessible population (Mugenda
Mugend, 1999). There are two types of sampling techniques: probability and non-probability
sampling. This research will adopt probability sampling technique which includes: snowball
clustered, stratified and simple random sampling Bhardwaj, P. (2019). This study will adopt
simple random sampling technique. According to research sampling ensures that some elements
of a population are selected as a driving representative of the population Gray & Meister, (2004).

(Yamane, 1967) n= N/(1+N(e)^2) where n is sample size, N population size and e desired level of
precision which is 0.05 with a target population of 30 employees the sample size will be 27
employees.

3.6 Data Collection Instruments.

Data collection instruments are tools used to gather data Moyo, T. (2017). Data collection
instruments includes questionnaires, surveys, interviews, observations and secondary sources
such as financial records, journals Sandelowski, M. (2000). This research will adopt the use of
open ended questionnaires, interviews and secondary data. From the supermarket books and
journals. The questionnaires will use open-ended questions since it will provide more
information that will be captured as compared to the closed-ended questions (Yang et al.,2019).

21
3.7 Data collection Procedures
Data collection procedure is the process of gathering and analyzing relevant data or information
to answer the study questions (Moore & Llompart, 2017). Data collection can be categorized into
qualitative or quantitative data collection methods. This research will adopt both quantitative and
qualitative data collection method which includes questionnaires, surveys and documents and
records Sandelowski, M. (2000). Quantitative data collection will be applied in this study
because it enables a researcher to ask questions that enables him/her to collect sets of facts and
figures and the method is relatively straightforward.
3.8 Data Analysis
Data analysis is the process of systematically searching and arranging field’s notes data, and
other material obtained from the field so as to increase understanding and for easy presentation
to others (Orodho 2004). There two types of data analysis methods qualitative and descriptive
Nassaji, H. (2015). The data will be analyzed using descriptive data analysis method and it will
be presented using percentages, tables, charts with frequency distribution to make the research
findings obtained from the questionnaires easy to understand. After this, a response will analyze
using tables. The advantage of these techniques is their ability to quantitatively measure and
represent population parameters (Gilroy, 2018).

22
 CHAPTER FOUR
FINDINGS AND DISCUSSIONS
4.1 INTRODUCTION
4.2 Response Rate
The response rate for the study was as tabulated in Figure 4.1

Response Rate

10, 20%

40, 80%

Returned Unreturned

Figure 4.1: Response Rate

A total of 50 questionnaires were administered. However, those that were filled completely and
returned were 40 translating to a response rate of 80%. Only 10 questionnaires were unreturned. This
was a good response rate that was favorable for the study. This given rate was considered appropriate
as it is according to Guest (2012) who asserts that any rate above 50 percent is appropriate for inference
and presentation.

23
4.3 Descriptive Analysis
4.3.1 Descriptive analysis for Safe handling of materials and prevention of breakages
The response rate for the study was as tabulated in table 4.1

Table 4.2: Descriptive analysis for Safe handling of materials and prevention of breakages

Statement N Mean SD

1. The staff at this supermarket receive adequate training and 40 4.05 0.228

education on the safe handling of materials to prevent breakages.

2. The supermarket provides the necessary tools and equipment to 40 4.25 0.244

facilitate the safe handling of materials and prevention of breakages.

3. The supermarket has adequate and proper storage facilities and 40 3.75 0.207

the goods are properly labelled.

N 40

A mean of 4.05 for statement 1 indicates that most supermarkets believe proper staff training on safe
handling practices helps prevent product breakage and lowers replacement costs .A mean of 4.25 for
statement 2 suggests a strong belief that providing the right tools and equipment for safe handling
significantly reduces product damage and associated costs. A mean of 3.75 for statement 3 implies that
supermarkets view having adequate storage facilities and proper labeling as moderately important for
cost control. This practice likely helps minimize spoilage and lost inventory.

The findings agreed with those of Bryan, (2019) that supermarkets considered practices like staff
training, proper equipment provision, and organized storage to be significant factors in preventing
product breakage. However, contradicted with those of Ndlovu and Dlamini (2019) who point towards
automation and technology playing a bigger role in modern inventory management.Therefore, this
study concluded that established practices that minimized breakage remained important, but the future
might involve integrating automation and technology to achieve both breakage prevention and
improved efficiency.

24
4.3.2 Descriptive analysis for Efficient stock control practices
The response rate for the study was as tabulated in Table 4.2

Table 4.3: Descriptive analysis for Efficient stock control practices

Statement N Mean SD

1. The inventory in the supermarket arrives just in time 40 3.95 0.220

of demand by the customers

2. The supermarket calculates the EOQ in order to 40 4.25 0.244

balance the ordering and holding cost

3. The supermarket applies either FIFO or LIFO to 40 3.7 0.204

control movement of items in and out.

N 40

A mean of 3.95 for statement 1 indicated that Kenyan supermarkets see value in just-in-time inventory
management, where stock arrives close to the time of customer demand. This can help minimize storage
costs. A mean of 4.25 for statement 2 suggested a strong preference for using the Economic Order
Quantity (EOQ) model to balance the cost of ordering inventory frequently (ordering cost) and the cost
of holding excess inventory (holding cost). This indicated a focus on optimizing inventory levels for cost-
effectiveness. A mean of 3.7 for statement 3 implied that supermarkets view using either FIFO or LIFO
methods for managing inventory movement as moderately important. This suggested they might not
have a strong preference between these two common methods.

These findings agreed with those of Sahil (2017) who found out that most of the respondents agreed
that supermarkets considered efficient stock control practices to be important for their performance.
However, contradicted with those of Nalubowa,R. (2021) who found that implementing efficient stock
control practices can be challenging for supermarkets in developing economies. This study concludes
that while established practices remain valuable, adapting them to the context of a developing economy
with limited resources and complex market dynamics is crucial.

25
4.3.3 Descriptive analysis for Keeping accurate inventory records
The response rate for the study was as tabulated in Table 4.3

Table 4.3 Descriptive analysis for Keeping accurate inventory records

Statement N Mean SD

1. The use of barcoding and RFID technology has enhanced 40 4.0 0.224

accuracy in stores management

2. Regular audits and stock takes have reduced cases of 40 4.4 0.257

discrepancies in stock

3. The use of technology in maintaining inventory accuracy 40 3.8 0.210

significantly enhances the performance of the supermarket

N 40

A mean of 4.0 for statement 1 indicated that most supermarkets believe barcoding and RFID technology
play a valuable role in improving inventory record accuracy. A high mean of 4.4 for statement 2
suggested a strong belief among participants that conducting regular audits and stock takes significantly
reduces discrepancies between recorded inventory and actual stock levels. A mean of 3.8 for statement
3 implied that supermarkets view the use of technology for maintaining inventory accuracy as
moderately important for performance enhancement.

The findings agreed with Bradfords & Grey (2019) who found out that supermarkets considered both
traditional methods (regular audits and stock takes) and technological advancements (barcoding and
RFID) to be important for maintaining accurate inventory records. However, contradicted with those of
Reinhardt (2021) who found out that implementing advanced technologies like RFID can be cost-
prohibitive for some supermarkets in developing economies. Therefore, this study concludes that
balancing the need for accuracy with the realities of cost constraints in a developing economy is crucial.

26
4.3.4 Descriptive Analysis for Performance of supermarkets in Kenya
The response rate for the study was as tabulated in table 4.4

Table 4.4 Descriptive Analysis for Performance of supermarkets in Kenya

Statement N Mean SD

1 The supermarket effectively manages its expenses to 40 3.95 0.220

maximize profits.

2. The customer service at the supermarket is responsive and helpful 40 4.45 0.262

3. The supermarket adapts quickly to changing market trends 40 3.45 0.192

N 40

A mean of 3.95 for statement 1 indicated that, on average, Kenyan supermarkets believe they manage
their expenses well to maximize profits. A higher score of 4.45 for statement 2 suggested that customer
service is a particular strength, with supermarkets rating their responsiveness and helpfulness towards
customers quite highly. A mean of 3.45 for statement 3 implied that adaptability to changing market
trends might be an area for improvement, with an average score slightly lower than the others.

These findings agreed with those of, Reinhardt (2021) and Reinhardt (2021) that many supermarkets
viewed themselves as performing well in expense management and customer service, while adaptability
to market trends might be a focus for further improvement. However, contradicted with those of Sahil
(2017) who found out that a wider range of performance metrics were important for supermarkets,
including factors beyond expense management and customer service.

This study therefore, concludes that supermarkets should strive for a multi-faceted approach to
performance evaluation. While self-reported strengths are a good starting point, a more comprehensive
analysis including additional metrics can reveal areas for improvement and ultimately lead to better
overall performance.

27
 4.3.5 Descriptive Analysis for relationship between independent and dependent Effect of
Stores Management Practices on Performance of Supermarkets in Kenya.
The response rate for the study was as tabulated in table 4.5

Table 4.5 Descriptive Analysis for relationship between independent and dependent Effect of Stores
Management Practices on Performance of Supermarkets in Kenya.

statement N Mean SD

Safe handling of materials and Training and Education 4.05 0.228

prevention of breakages Use of Material Handling Equipment 4.25 0.244

Proper storage and labelling 3.75 0.207

AVERAGE MEAN 4.02

Efficient stock control practices

Just in time 3.95 0.220

Economic order Quantity 4.25 0.244

FIFO and LIFO 3.70.204

AVERAGE MEAN 3.97

Keeping accurate inventory records

Barcoding and RFID technology 4.0 0.224

Regular audits and stock taking 4.4 0.257

Digital inventory management system 3.8 0.210

AVERAGE MEAN 4.07

Performance of supermarkets in Kenya

Financial Performance 3.95 0.220

Level of customer satisfaction 4.45 0.262

The competitive positioning 4.4 0.192

AVERAGE MEAN 4.5

28
Prioritization of Safe Material Handling and Inventory Accuracy: Scoring the highest average mean (4.07)
among the independent variables, "Keeping Accurate Inventory Records" suggested a strong relationship with
the performance. Importance placed on Efficient Stock Control Practices: With an average mean of 3.97,
"Efficient stock control practices" showed a moderate emphasis on performance. The lower score for "FIFO and
LIFO" (average mean of 3.7) suggested that managing stock movement might be a less emphasized aspect
within efficient stock control practices and weak relationship with the performance of supermarkets.

These findings agreed with those of, Reinhardt (2021) and Reinhardt (2021) that safe material handling and
inventory accuracy strongly affected the performance of supermarkets, while efficient stock control practices
moderately affected the performance of supermarkets and FIFO and LIFO least affected the performance of
supermarkets. However, contradicted with those of Sahil (2017) who identified additional factors beyond safe
handling, inventory accuracy, and even efficient stock control practices that contribute to a supermarket's
success.

Therefore, this study concludes that while safe handling, inventory accuracy, and some aspects of stock control
are essential, focusing on employee development, strategic marketing, and an inviting store environment can
significantly enhance overall performance in the competitive Kenyan supermarket landscape.

29
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APPENDICES
APPENDIX I: QUESTIONARE
I am a student at The Cooperative University of Kenya; I would like to invite you to participate
in a research study, which aims at collecting data for my proposal. Your answers will not be
released to anyone and will remain confidential.

Your participation will take approximately 20 minutes and I will ask you to fill it out with as
much accuracy as possible.

Section A: Background information about yourself

Kindly tick appropriately

Please answer every question as in outlined by using either a cross(x) or (ticking) in the option that
applies.

1. What is your gender?

a. Male

b. Female

2. What is your Age?

a. Below 25 b. 26 – 35

c. 36 – 45 d. Above 46

3. What is your highest level of Education?

a. Secondary b. College

b. University

4. What is your role in the Supermarket?

……………………………………………………………………………………………………..

33
SECTION B: SAFE HANDLING OF MATERIALS AND PREVENTION OF
BREAKAGES

In a scale of one to five, rate the following statements about safe handling of materials and
prevention of breakages, in the table below where 1 is (Strongly disagree), 2(Disagree), 3
(neutral), 4 (agree) and 5(Strongly Agree).

Statement 1 2 3 4 5
1. The staff at this supermarket receive adequate training and
education on the safe handling of materials to prevent
breakages.
2. The supermarket provides the necessary tools and equipment
to facilitate the safe handling of materials and prevention of
breakages.
3. The supermarket has adequate and proper storage facilities
and the goods are properly labelled.

34
SECTION C: EFFICIENT STOCK CONTROL PRACTICES

In a scale of one to five, rate the following statements about efficient stock control practices, in
the table below where 1 is (Strongly disagree), 2(Disagree), 3 ( neutral), 4 (agree) and 5(Strongly
Agree).

Statement 1 2 3 4 5
1. The inventory in the supermarket arrives just in time of

demand by the customers

2. The supermarket calculates the EOQ in order to balance the

ordering and holding cost

3. The supermarket applies either FIFO or LIFO to control

movement of items in and out.

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SECTION D: KEEPING ACCURATE INVENTORY RECORDS

In a scale of one to five, rate the following statements about keeping accurate inventory records,
in the table below where 1 is (Strongly disagree), 2(Disagree), 3 ( neutral), 4 (agree) and
5(Strongly Agree).

Statement 1 2 3 4 5
1. The use of barcoding and RFID technology has enhanced
accuracy in stores management
2. Regular audits and stock takes have reduced cases of
discrepancies in stock
3. The use of technology in maintaining inventory accuracy
significantly enhances the performance of the supermarket

SECTION E: PERFORMANCE OF SUPERMARKETS IN KENYA

In a scale of one to five, rate the following statements about keeping accurate inventory records,
in the table below where 1 is (Strongly disagree), 2(Disagree), 3 ( neutral), 4 (agree) and
5(Strongly Agree).

Statement 1 2 3 4 5
1. The supermarket effectively manages its expenses to
maximize profits
2. The customer service at the supermarket is responsive and
helpful
3. The supermarket adapts quickly to changing market trends

THANK YOU.

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 List of Firms

Naivas supermarket Rongai branch

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