ASSESSING THE IMPACT OF STREET VENDING ON THE

FINANCIAL PERFORMANCE OF RETAIL BUSINESS IN LUSAKA; A

CASE STUDY OF CAIRO ROAD.

RESEARCH DISSERTATION

By

Leah Sajisa

(004-868)

A dissertation submitted in partial fulfilment of the requirements for the

award of a bachelor’s degree in business administration at Cavendish
University Zambia

i
 DECLARATION

I, Leah Sajisa do here by declare that this dissertation is my own work. It has never been
submitted by any other person to any institution for any award. I have acknowledged all
sources used in this paper where possible.

Sign…………………………………………

Supervisor

Name………………………………………..

Sign…………………………………………

ii
 ACKNOWLEDGEMENTS

Thank you, Lord God, for always being there for me. It couldn't get any better than this. I
humble myself before the Lord to express my gratitude for keeping me in good health and
providing me with sound reasoning to complete this task. Thank you, God, for bringing this
vision to reality.

First and foremost, I would like to express my heartfelt gratitude to my supervisor, Mr. Lee
Mhalanga; what more can I say than that I owe you a great deal for your academic guidance
throughout this study? This paper is the result of your dedication and perseverance.

My heartfelt gratitude goes to my father, Mr. Tommy Sajisa, who is both my biggest
inspiration and my staunchest supporter. When asked to define what a father is, I always
define you. I have always wanted to be like you since I was a kid. Sir, thank you very much.
I would like to express my heartfelt gratitude to my family members, particularly my sisters
Mavis Sajisa and Trinity Sajisa, for their unwavering support, not to mention my daughter
Shanice, who always prayed for me when I was overwhelmed; you are a shining star.

What are friends for if not to assist one another in times of need? Grace and Nyawa I owe
you big time. Chitwale Kapambwe, I appreciate your assistance whenever I needed it. I will
never forget my classmates from the class of 2020. You all made a positive difference in my
academic life. I salute you all and wish you the best of luck in your future endeavors. And a
slew of others I can't possibly list here. You demonstrated the true meaning of friendship.
Throughout this study, you patiently advised me. I honor you.

Ryan Chola, the special person I hold dear in my heart, you are such a blessing. Before I
could even ask you, you knew exactly what you needed to do. Your enormous support was a
motivating factor that enabled me to overcome all of the obstacles in my path. I can't say
much more than that I pray to the good Lord to bless you with good health and happiness so
that we can all enjoy the fruits of our labor together.

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 DEDICATION

I dedicate this dissertation to my daughter Shanice Rylee Chola, my father, my sisters, my

best friend Ryan, and my entire family for their assistance throughout my time at Cavendish
University.

Without their help, not only this dissertation, but the entire program of study, would fail.

And in honor of my late mother, Mrs. Diagrace Kabinda Sajisa, I hope to see her again at
Christ's second coming.

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 ACRONYMS

GDP: GROSS DOMESTIC PRODUCT

OXIRM: OXFAM INTITUTE OF RETAIL MANAGEMENT

UNCTAD: UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT

U.S: UNITED STATES

USA: UNITED STATES OF AMERICA

WTO: WORLD TRADE ORGANISATION

ZDA: ZAMBIA DEVELOPMENT AGENCY

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 LIST OF TABLES

Table 2.1: Conversion rate calculation 27

Table 4.1: Street vendors profit per week 41

Table 4.2: Commonly purchased commodities 43

Table 4.3: Retailer average profit per week 44

Table 4.4: Criteria for selecting a street 45

Table 4.5: Comparison of different street sale of the same product per day 46

Table 4.6: Responses of Retailers on Customers that visited the Shop in the 47

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 LIST OF FIGURES

Figure 1: Conceptual Framework Source Figure 33

Figure 2: graphical representation of profit 43
Figure 3: average product prices 44
Figure 4: pie chart presentation of common goods bought from retailers 45
Figure 5: street comparison of common sold goods 46
Figure 6: choices on trading location 49

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 GLOSSSARY OF TERMS

Street vending -the act of selling merchandise in streets either on pavements, temporary
constructed structures or on mobility carrying their wares using vessels, baskets, sacks, drawn
carts vehicles etc.
Retail - Retail is the process of selling consumer goods or services to customers through multiple
channels of distribution to earn a profit.

Manufacture- make (something) on a large scale using machinery.

Motorist –a person who drives a car

viii
 ABSTRACT

Street vending has been the conventionalized as a business that is illegal yet does not seem to
end. The streets of the Lusaka particularly Cairo road, church road and Lumumba are the
most prominent street where street vending is done.

This paper focuses on the impact of street vending on retail and incidentally manufacturing.
The more items are removed from the retail shop, the more needs to be manufactured and
subsequent imported. This increases employment in the supply chain and improves
economic activities in the country.

The problem of street vending however that is it has been marred with illegality and not well
structured considering the economic benefit. The country has not considered legitimizing the
business in a well-coordinated fashion.

The paper focused on three arears, vis-à-vis, and the impact of street vendors on the customer
traffic in retail shops, a relationship model of the street vending and retail business as well as
public perception of street vending.

The results show that a thick relation exists between retailers and street vending as 40
percent of customers in retail shops per day are street vendors. The results further show an
increase in customer count particularly those street vendors that participated in the research.
The perceptions of the public are tilted towards accepting the kind of business but in a well-
structured and coordinated environment most perhaps in particular streets.

It is recommended that the country through a legal framework create street vending street
which can be equivalent to street markets. Retailers develop a relationship with more street
vendors in what is known as relationship marketing so as to protect both the street vendor
and the retailers.

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 Table of Contents
DECLARATION ............................................................................................................................ ii

ACKNOWLEDGEMENTS ........................................................................................................... iii

DEDICATION ............................................................................................................................... iv

ACRONYMS .................................................................................................................................. v

LIST OF TABLES ......................................................................................................................... vi

LIST OF FIGURES ...................................................................................................................... vii

GLOSSSARY OF TERMS .......................................................................................................... viii

ABSTRACT ................................................................................................................................... ix

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

1.0 Introduction ............................................................................................................................... 1

1.1. Background to the study .......................................................................................................... 2

1.2. Problem statement: ............................................................................................................... 3

1.3 Objectives of study: .................................................................................................................. 3

1.3.1 General objective: .................................................................................................................. 3

1.3.2 Specific objectives: .......................................................................................................... 3

1.4 Research questions: ................................................................................................................... 4

1.5. Assumptions ......................................................................................................................... 4

1.6. Significance of the study ...................................................................................................... 4

1.7. Rational of the study ............................................................................................................ 4

1.8. Limitations of study ............................................................................................................. 5

1.9. Delimitations of study .......................................................................................................... 5

1.10. Definitions of key terms and concepts ................................................................................... 5

CHAPTER TWO: Literature Review ............................................................................................. 6

2.1 Introduction ....................................................................................................................... 6

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 2.2 Trading in Zambia ............................................................................................................. 6

2.3 Manufacture Production in Zambia .................................................................................. 6

2.4 Economic Activities through Retail Trading .................................................................... 7

2.5 Retaining Composition ..................................................................................................... 8

2.5.1 Suppliers......................................................................................................................... 8

2.5.2 Intermediaries..................................................................................................................... 8

2.5.3 Customers....................................................................................................................... 8

2.6 Street Vending Composition ............................................................................................. 8

2.61 Customer Composition of Street Vendors ...................................................................... 8

2.7 Theoretical Framework ............................................................................................................. 9

2.7.1 The Reformist School of Thought ................................................................................. 9

2.7.2 The Marxist school of thought ..................................................................................... 10

2.7.3. The Gender Perspective .............................................................................................. 11

2.8 Empirical Review ................................................................................................................ 11

2.13 Why Calculating Sales Conversion Rate .......................................................................... 16

Table 2.1: Conversion rate calculation ..................................................................................... 17

2.20 Conceptual Framework ................................................................................................... 22

CHAPTER THREE....................................................................................................................... 23

3.0 Research methodology and design .......................................................................................... 23

3.1 introduction ............................................................................................................................. 23

3.2 Research Approach ................................................................................................................. 23

3.3 Research design....................................................................................................................... 23

3.4 Research Strategy .................................................................................................................... 24

3.5 Research Population ................................................................................................................ 24

3.6 Sampling techniques ............................................................................................................... 24

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3.7 Sources of data ........................................................................................................................ 24

3.7.1 Secondary data ................................................................................................................... 25

3.7.2 Primary sources.................................................................................................................. 25

3.8 Data analysis ........................................................................................................................... 25

3.8.1 Questionnaires .................................................................................................................... 26

3.8.2 Interviews ............................................................................................................................ 26

3.9. Data validity and reliability.................................................................................................... 27

3.9.1 Reliability ............................................................................................................................ 27

3.9.2 Validity................................................................................................................................. 27

3.10. Ethical considerations .......................................................................................................... 28

4.0 CHAPTER FOUR: Data analysis, Presentation and Discussions.......................................... 29

4.1 Introduction ......................................................................................................................... 29

4.2 Section A: Demographic Presentation ................................................................................ 29

4.3 The impact of Street vending on customer count of retailers.................................................. 34

4.1 To investigate the impact of street vending on the average shopping and how it ............. 35

To find out how traders make their choices on trading location. .............................................. 37

5.2.1 The Impact of Street Vending on Customer Count of Retailers. ................................. 39

5.2.3 To find how traders make location choice ....................................................................... 39

6.4.1 Construction of organized more markets ..................................................................... 41

6.4.2 Shopper Marketing ....................................................................................................... 42

6.4.3 Relationship Marketing ................................................................................................ 42

6.4.4 Continuous Research and Development ...................................................................... 42

6.4.5 Designated vendor location .......................................................................................... 43

References ..................................................................................................................................... 44

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xiii
CHAPTER ONE

1.0 Introduction

The informal economy plays a critical part in the development progression of low-income
countries via the establishment of livelihood for the majority of the population. To survive
many of the poor depend on street vending. Bhowmik (2005) defines Street vending as an
activity which takes place outside enclosed premises or covered workspace on street
pavements, sidewalks, but also at bus stops and in other public places carried out by self-
employed workers. The issues that exist in Lusaka between municipal authorities and street
sellers exist in cities all over the world, particularly in poor countries. Street vending is one of
the most common occupations in the informal economy, and it is thought to be an ancient
tradition that has always existed in the urban landscape. In Zambia, however, street selling is
prohibited and considered a public nuisance.

These self-employed people are either fixed or mobile and operate in the informal sector.
Vending on the street is an ancient and significant vocation that can be found in almost every
country and large city on the planet. Many observers equate street vendors with
overcrowding, safety and health hazards, tax fraud, and the selling of substandard products,
despite the fact that they give life to the sidewalk and contribute to economic activity and
service provision (Bromley Ray, 2000). The New Urban Agenda has a major problem in
positioning quality jobs with excellent habitat as foundations for long-term urbanization.
When informal work accounts for more than half of total employment in most parts of the
global South, and self-employment outnumbers wage employment, this problem is
substantial. (1) Street commerce is one of the most prominent forms of self-employment, but
few cities manage to strike a balance between the need to promote livelihoods and the
requirement to regulate public space (Sally Roever & Caroline Skinner, 2016). During a
recession, consumers will employ a variety of strategies to stretch their money as far as

1
possible, including more carefully comparison shopping at point-of-sale places, helping to
bring out previously unused money from savings accounts, trying to switch to lower-cost
choices, and deciding to shop in less prime locations to find discounts. Using street vendors
rather than traditional interior stores is one such approach. Because of this, street sellers may
provide lower-cost items (John Christopher Welsh, 2010).

This same word 'retail' comes from the prefix re and the verb tailer, which means to cut once
more in French. Smaller portions of large lumps of goods are evidently cut off in the retail
trade. It is the process of transporting things to their final destinations. In other terms, retailing
is the process of selling directly to the final customer for personal, non-commercial purposes.
Retail is a type of company where the vendor sells modest amounts of items to clients based
on their need. A retail shop is a retail business that focuses on volume sales in the retail
industry. The purpose of retailing, in simple terms, is to sell things to final consumers by an
individual or a company. It includes the producer's direct-to-customer sales activity, either
through his own storefronts, house-to-house solicitation, or mail-order Company;
nevertheless, street sellers in Lusaka behave as consumers by purchasing in bulk to sell on the
streets.

1.1. Background to the study

Before colonization, Zambian society used to trade in public locations, particularly along
significant commerce routes, and street hawking activities may be dated back to the founding
of Northern Rhodesia. In the late 1970s and early 1980s street vending was referred to as
black market and products such as soap, detergent, candles, cooking oil, bread and sugar were
among the items that were usually in short supply in the legal retail outlets and therefore sold
on the black market (Hansen 2004). Black market is the term that was used to describe none
formal marketing activities vending in yards’ homes and streets occasionally the police could
weep black vendors, confiscate their goods, fine them or more drastically imprison them but
regardless of this they returned to vending (Hansen and Vaa 2004: 64). Nevertheless,
throughout this time street vending was not so noticeable, it became more visible after the
acceptance of the neo liberal reform policies in the 1990s. This shift toward liberalization had
a wide range of consequences for Zambians. Privatization of large national firms and
downsizing of the civil service resulted in massive unemployment, forcing individuals to turn

2
 to the informal sector. Between 1992 and 1995, the formal economy lost around 61,000
employments, according to estimates (Global Policy Network 2001). As a result, the decline
of the formal economy has spurred the rapid growth of the informal sector.

1.2. Problem statement:

The connection between street vending and shops has long been a source of heated discussion,
with neither theoretical nor empirical evidence providing a clear understanding of the
problem. In recent years, street vending has emerged as a significant trend in economic
development.

Poorly managed street vending activities, on the other hand, lead to the smuggling of items
into the country and unfair commercial practices against properly registered businesses. These
tactics include selling their wares right in front of storefronts.

Vending on the street has become more common, particularly in the core business district.
This is primarily due to a lack of formal employment opportunities and a growing population.
The goods sold on the streets are bought from stores and then sold to motorists. This study
aims to determine the influence of illicit business on retail in Zambia's Kamwala commercial
district. Should it be established that the impact on retail is beneficial, the research will
attempt to identify alternatives to allow street selling in an ordered and designated street.

1.3 Objectives of study:

Objectives of study are divided into general and specific objectives

1.3.1 General objective:

The main objective is to assess the impact of street vending on the performance of retail
business in Zambia; this is done by establishing the relationship between street vending and
financial performance of retail business in Lusaka.

1.3.2 Specific objectives:

The specific objectives to address the main objective are:

(i) To demonstrate a relationship using models of street vending and retailing.

3
(ii) Identification of most street vended products.
(iii) To find out how traders make their choices on trading location.

1.4 Research questions:

1. Is there a relationship between street vending and retailing?

2. Are there products that are mostly street vended?
3. How do traders make their choices on trading location?

1.5. Assumptions
 There is a relationship between street vending and financial performance of retailers
 The research also assumes that the respondents gave accurate information.

1.6. Significance of the study

The goal of this study was to ensure that all stakeholders, including the researcher, the
institution, the organizations under examination, and the nation at large, benefited.
Developing a link between street vending and retailer financial success would provide crucial
information for many stakeholders to take action. Policymakers may use the data to create
regulations to protect retailers from unfair vendor activities, or if the data shows a positive
impact, the country may endeavor to improve street vending to enhance the economy.

1.7. Rational of the study

The results of the study are intended to bring the voices of street vendors to light in order to
better understand why they do not trade in approved marketplaces. Furthermore, to create
practical knowledge that will inform policy makers so that they can comprehend the dynamics
of street vending, at the very least by listening to the vendors' perspectives. Because
opportunities for intervention as well as policy gaps will be highlighted, local development
practitioners will get a better understanding of how to manage the problem of street vending.
The study's findings will contribute to our understanding of why street sellers do not employ
authorized economic structure. Although much has been written about why street vendors
exist and the benefits and drawbacks of vending, less has been written on why street sellers
occasionally prefer not to use authorized market infrastructure.

4
1.8. Limitations of study
During this investigation, there were numerous obstacles to overcome. Due to the fact that
Zambia was in the midst of an election year, several people were hesitant to provide me with
vital information, fearing that the information might be used against them for campaign
purposes. Furthermore, because street vending is prohibited, it was difficult to conduct field
research because some vendors refused to speak with me, and it was also difficult to take
photographs because merchants were confrontational.

Because of the nature of my respondents, conducting the research took a long time because
the traders had to attend to their customers while also speaking with me.

Nonetheless, I managed to carry out my field work.

1.9. Delimitations of study

This research concentrates on the retail industry in Zambia, specifically the Lusaka town
center. Analyzing the financial results of retail businesses as a result of street vending.

People who shop in Lusaka town center, street vendors on corridors and also the streets, and
also some businesses that have been open for more than five years where the study's target
demographic.

1.10. Definitions of key terms and concepts

1. Street vending -the act of selling merchandise in streets either on pavements, temporary
constructed structures or on mobility carrying their wares using vessels, baskets, sacks, drawn
carts vehicles etc.

Retail - Retail is the process of selling consumer goods or services to customers through
multiple channels of distribution to earn a profit.

Manufacture- make (something) on a large scale using machinery.

Motorist –a person who drives a car

5
CHAPTER TWO: Literature Review

2.1 Introduction
In order to address the objectives, this part will review numerous publications in regard to
trade under several thematic areas pertinent to this study.

2.2 Trading in Zambia

Zambia's goods trade volume and pattern are mostly determined by domestic production
structures in mining, agriculture, and manufacturing. Overall, goods trade dominates the
economy's trade profile. Although domestic services account for the majority of the country's
GDP, this has not materialized into trade in services, according to UNCTAD (2016). From the
last evaluation in 1996, Zambia has decided to pursue numerous economic reform initiatives
aimed at producing good economic growth, reducing reliance on copper, and establishing a
solid foundation for poverty reduction, according to the WTO (2002). This includes a shift
toward a more open and unregulated economic and trade environment. Zambia has also
remained a strong supporter of bilateral, regional, and international trade agreements.

2.3 Manufacture Production in Zambia

According to ZDA (2013), the manufacturing industry accounts for 10.7% of the nation's
GDP and employs 9.6% of the population. Food production, coffee, tea, tobacco, and wood
products are the main agro-based sub-sectors. Chemicals, rubber and plastics, industrial
minerals, and fabricated metal are a few of the manufacturing industries. The industrial sector
has encountered a variety of challenges, such as a lack of proper investment, high production

6
and communication costs, outmoded technologies, and growing competition from low-cost
imports, all of which have made most local products less competitive.

2.4 Economic Activities through Retail Trading

Manufacturers and wholesalers sell items to retailers, who then resale them to customers.
While this perspective on retailing may account for its core characteristics, it does not
encompass the whole variety of services provided by the business. It does not properly
explain what retailers do to add value to the things they sell, nor does it assist in identifying
future competitive challenges that retailers may encounter (Australian govt, 2013). In today's
Europe, the retail and wholesale sectors are the outcome of numerous key advances that have
fueled economic expansion. According to the research OXIRM (2014), the mass consumer
has gotten more influential with each step change in progress. The advancement of
technology allows retailers, wholesalers, and manufacturers to become more integrated on a
larger scale, providing customers with more access to even more innovative items, even
cheaper goods, and even more channels and formats.

Retail sales are projected to account for two-thirds of the US gross domestic product (the
overall size of the economy). According to the U.S. Bureau of Labor Statistics, over 15
million people were working in the retail business as of May 2015. The United States is home
to five of the world's top 10 retailers (Walmart is the biggest). So retail is enormous; it's really
large. As such, it has the potential to have a massive influence on both local and national
economies. The retail industry performs about 20% of its yearly business during the
Christmas season (David Whitsett, 2019). They also recruit additional staff, which results in
the creation of temporary positions. Retail sales data are frequently used to gauge the state of
the economy and consumer confidence. Jobs in the retail apparel sector in physical shop
locations have recently dropped across the United States as a result of affordable and

7
convenient online choices. However, the retail industry as a whole has continued to expand on
an annual basis since it incorporates non-store sales.

2.5 Retaining Composition

The retail business in Kamwala has three main stages in its supply chain;

2.5.1 Suppliers
Suppliers are people and corporations who offer the store with resources. For instance, a retail
business must get numerous items from various suppliers so that when consumers walk in and
inquire about the products, he would be able to offer them on time. Changes in the 'suppliers'
environment can have a significant influence on a retailer's marketing activities.

2.5.2 Intermediaries
Intermediaries are companies that help a retail store promote, sell, and distribute its
products to end users. Large corporations may engage agents to locate stores in various
sections of the CBD.

2.5.3 Customers
A retailer establishes relationships with suppliers and middlemen in order to efficiently
deliver relevant items and services to its target market. Individuals and families who purchase
products and services for personal use may be its target market.

2.6 Street Vending Composition

According to statute number 10 of 2018 of the local government act, street peddling is banned
in Zambia; nevertheless, despite the legislation, street sellers continue to do business and warn
each other when police are on patrol.

2.61 Customer Composition of Street Vendors

There is no particular method for street sellers to identify clients, but according to Prerna
Raturi (2016), street merchants mark their potential consumers from afar. Those selling
embroidered goods and smart reproductions of tiny paintings will target foreign visitors,
whereas those selling handbags that are knockoffs of hot-off-the-rack and value-for-money
bag packs will target college-aged women. Speaking to the consumer in her language is
critical; advertising and marketing campaigns stress it all the time, but it's not simple; you'll

8
need deep insights into consumer behavior to do so. Vendors give the buyer the impression
that he has won the negotiating game.

2.7 Theoretical Framework

It is stated that street selling, as a topic of the informal sector, lacks a well-defined theoretical
framework as well as scientific rigor. Ndlovu cites Jimu (2004). (2011). as a component of the
informal sector, debates and discussions regarding street selling are integrated into informal
sector dissertations. Since the introduction of street selling into development studies,
arguments have been divided into two schools of thought: The Reformist and Marxist Schools
(Nattress (1987), referenced in Jimu (2004) and Ndlovu (2004)). (2011). Jimu (2004)
expanded on the gender viewpoint, as well as the environmental and health problems and
controversies surrounding street vending. However, these two added by Jimu (2004) are of no
paramount importance to this study.

2.7.1 The Reformist School of Thought

The views of the International Labour Organization (ILO) mission to Kenya in the 1970s
fueled the reformist school's motivation. This school is also inspired by Hart's writing on
informal income possibilities as well as issues surrounding Accra, Ghana, urban employment
in the 1970s. School is motivated not only by the aforementioned sources, but also by reports
prepared by the African Development Bank and the World Bank.

This school sees the informal sector, particularly street selling, as a tool for poverty reduction
and economic progress. This viewpoint is based on the fact that the informal sector
encourages innovative business practices, such as entrepreneurship, job creation, and, most
importantly, on-the-job training (Fapohunda 1985; United Nations 1996), as stated by Jimu
(2007). There is a lot of writing on this topic in developing nations. According to Jimu (2007),
the broad understanding is that fairly modest socio-economic visions repeat the disaster of
orthodox economic intelligence, which puts emphasis on the government and the private
sector as drivers of economic growth, jobs, social stability, success, and general welfare of the
people. The informal sector's prospective role in alleviating poverty and unemployment in
emerging nations is a driving force for its expansion. The minds behind such a viewpoint
believe that the informal sector should be formalized. The unfortunate part is that there is a

9
lack of clarity on the extent to which such encouragement should occur, despite the fact that it
is acknowledged that the informal sector's competitiveness stems from a lack of bureaucratic
and hierarchical structures, an unregulated operating environment, and informality, making
business in the informal sector cost-effective and profitable to participants. Jimu (2007).

The argument has frequently been made that, in order to maximize the benefits of the
informal sector, the emphasis should be on providing an environment devoid of bureaucratic
restrictions. However, it may be claimed that the absence of control is a disadvantage since it
endangers the viability of the informal sector, mostly because governments are quick to
dismiss or, at best, ignore it totally with harsh penalties as a non-tax-paying sector.
Notwithstanding the informal sector's importance to the country, governments find it difficult
to encourage it because it does not pay taxes (United Nations, 1996; Esim, 1996), as
mentioned in Jimu (2007). Apart from these and other findings, one may argue that a major
feature of the reformist viewpoint is a “near complete ignorance and exaggeration regarding
the peculiarity of the informal sector” Jimu (2007). The informal sector, by virtue of being
marketed as the panacea for economic ills, is claimed to have structural dependency and
interdependence with the formal economy, a gap that Marxists take as their starting point.

2.7.2 The Marxist school of thought

Unlike the reformist school, Marxist school centers on the structural reliance and
manipulative relations amongst the formal and informal economies. Informal sector is
regarded as a trivial product production or unimportant sector (Nattrass, 1987) cited in Jimu
(2007), Marxist theorists argue that the informal sector is just a distinct 'marginal pole' which
by acting as a reserve army of labor and producing or offering cheap, poor quality,
subsistence goods and services; facilitates capital accumulation in the formal sector (Tokman,
1978; Moser, 1978) cited in Jimu (2007). By implication, the participants in the informal
sector make little contribution to national gross domestic product (GDP). This means that
there would be very little loss to the economy, as a whole, if the informal traders are taken off
their occupation. Such a view is hostile to the informal sector and governments pursuing this
line of thinking do not see any need to provide physical, economic and social space for
informal economic actors, such as street vendors. It is however critical to recognize that the
informal sector is not just subordinate to the formal sector, as Marxists posit, but that, it

10
compliments, if not challenges the formal sector. Although both informal and formal sectors
of an economy, are subordinate to the structural constraints of the broader national and global
economy, the informal sector is a challenge to the formal sector, because it enhances social
justice by accommodating people not considered fit in the formal sector, by undermining and
even displacing the formal economy (Emizet, 1998) cited in Jimu (2006).

2.7.3. The Gender Perspective

This viewpoint has anything to do with the advancement of social justice. So far, African
research on street vending has revealed that women predominate in the informal sector. They
mostly engage in food and beverage production, retail commerce, ceramics, basket weaving,
and cross-border trade (Murry, 1991; United Nations, 1996 cited in Chen 2006). A sectoral
examination of women's participation in the informal sector, for instance, in the Democratic
Republic of the Congo (DRC), the Gambia, and Zambia, reveals that women are extremely
active. Nonetheless, radical feminists would argue that the tendency repeats the gender
inequalities (with women consigned to the informal sector) inherent in oppressive social
structures that advantage males over females in schooling, learning skills, and work.
However, it is also clear that, in most situations, businesses in the informal sector are civilian,
locally governed, and less vulnerable to economic problems than large ones. During
recessions, the informal economy often flourishes and offers self-employment. When it comes
to street hawking in Zimbabwe, both the reformist and Marxist schools of thought apply. In
Zimbabwe, there is no set structure for street selling. The informal sector may be classed
mostly under the reformist school of thinking as a result of the government's efforts to
encourage entrepreneurship and small enterprises.

2.8 Empirical Review

According to Hudson et al. (2012), the informal economy influences wage levels in the
economy and, to a larger extent, smaller companies. This conclusion was reached as a
consequence of a quantitative research done in South East Europe on the issue of the
influence of the informal economy on businesses. Williams (2007) performed yet another
research in the United Kingdom on the link between small enterprises and the informal
economy. According to the data, the majority of the businesses impacted are in the sectors of
land transport, construction, motor vehicle commerce, hotels and restaurants, with unqualified

11
efforts, and enterprises in the periphery are the most affected. Because street selling is a part
of the informal economy, our research has no choice but to agree with them. Nonetheless,
they concluded the investigations by requesting more identical research projects from other
locations to determine if the influence is the same or not. Furthermore, this study identified a
gap in that the study was too general and could not establish a relationship between street
vending and retailer financial performance.

In terms of street selling in the Asian setting, a study conducted by Kaizh (2013) on street
vending in China discovered that it was restricted in China due to the country's socialist
economy. To keep its equities, China has to reduce its restrictions and enable individuals to
engage in economic activities. Following the economic reform, street vending has developed
at a quicker rate. This study focused on the growth of street vending in Asian society but did
not examine its impact on Chinese retail enterprises. This creates a barrier, which prompted
this study to look at the relationship between street vending and formal merchant profitability.
Because street selling is a global phenomenon, Africa is not left out of the literature on the
topic.

In 2003, the World Bank invited scholars from Women in Employment Globalizing and
Organizing [WEIGO] to participate in the World Bank's 2005 World Development Report.
Mitullah (2003) of the University of Nairobi put up a study on street selling in African towns.
The study was successful in analyzing the business environment limitations accessible to
street sellers by combining six case studies. Of doubt, these street sellers confront challenges
in their daily operations, but the issue posed by this study is if they are also a source of
concern for official shops.

2.9 Financial Relationship of street vending and retailing

If there is literature on financial performance, one can get a grasp of the subject and the
performance measures that are sought as main objectives of the study. It appears to be an easy
inquiry, okay? Is earning a profit financially beneficial? Yes, according to the response, but
there is more to it (Perdikaki et al 2012). Their study defined a retailer's financial performance
as its ability to draw people into its stores and profitably turn that traffic into purchases. As a

12
result, there is a significant requirement for significant expenditure in marketing efforts to get
customers into their stores, as well as in-store operations to convert traffic into lucrative sales.

According to Verhoef et al. (2009), retail stores do a variety of things to direct people into
their stores, including creating a great customer experience, making investments in loss leader
products, conducting sales promotions, offering discounts, undertaking promotional events,
workshops, seminars, and advertising. Despite prior vendor research, there is still a gap on
numerous issues that this study wishes to highlight.

The influence of street sellers on formal merchants is yet unknown, however some writers,
such as Beardshaw et al (2001), have written about it when they wrote about market
architecture. They claimed that there is a market structure known as ideal competition, in
which there are numerous buyers and sellers. When the supply of homogeneous items grows,
it indicates that prices are about to fall. According to this viewpoint, entities expand their
advertising techniques in order to obtain a competitive advantage. This is the number of
customers who enter a store or walk through a company. According to Hiema (2015), the
most straightforward indicator for a retail firm is the number of consumers. Customer traffic
may be identified through points of sale as well as loyalty programs offered by the company.
A retailer's client count is influenced by street vending. Clients may choose to buy items from
street vendors rather than inside the shop since street sellers are located near the retailer's
major entrances, making it simple for customers to make purchases outside the business. This
decreases the amount of consumers that enter or pass by the store.

Dinda (2010) conducted a study on street selling in 28 Bihar towns. The study focused on
gaining a better understanding of street sellers by mapping their behaviors across trades and
cities. The research also includes socioeconomic and business characteristics. The most
intriguing aspect of the study is that its evaluation sought to assist the policy process and
implementation in structure. The study's findings revealed the human capital structure in the
street vending industry. Street selling in Bihar's 28 towns is mostly controlled by an illiterate
majority, showing the lowest human capital profile. This report goes on to examine at the
literacy levels, which they discovered to be over 60% in certain places and ranging from less
than 10% to 50% in others. On the female side, illiteracy rates are estimated to be 100%. On

13
the other hand, according to (Gumbo 2015), Zimbabwean street sellers are dominated by
educated young and the unemployed. The situations in Zambia and Bihar are nearly identical,
with Zambia's literacy rate of street sellers being nearly double that of Bihar. Having this
information simply means that street sellers share a piece of the traffic that was meant to go to
the official shops. Irrespective of whether they are educated or not, as (Dinda 2010) points
out, they nevertheless entice people to buy from them, resulting in lower sales for traditional
shops. Dinda's research also looked at the socioeconomic condition of street sellers, finding
that the bulk of them are between the ages of 21 and 50. For the labor force, this is the most
productive age group. Male vendors are believed to start their companies at the age of twenty,
whilst female vendors start at the age of thirty to thirty-five. Their daily profits were also
stated to vary based on the vendor's history, cash infusions, and entrepreneurial abilities. The
majority of the street sellers were considered to be lacking in entrepreneurial skills. Looking
at the population pyramids in Zambia, we can see that the majority of street sellers will be
between the ages of 16 and 50 if a comparable study is conducted. Students begin selling as
soon as they complete their regular levels. When we talk about market share, we're referring
to the amount of consumers that street sellers claim.

2.10 Determinants of Gross Margin as a Metric of Financial Performance

This also refers to a company's capacity to cover the costs of selling a product with its gross
margin. It refers to a margin's capacity to pay all expenses involved with the production and
sale of a product. Gross margin, according to Johnson (2015), is the difference between sales
and costs of products sold. Many organizations use gross margin as a financial performance
metric since it is a solid predictor of a company's operational efficiency. This gross margin is
influenced by a number of things. Sales, material price adjustments, labor price changes, and
inventory method changes are just a few examples. (According to Johnson (2015)Gross
margin can be affected by street vendors following (Perdikaki et al 2012)’s which says the
ability of the firm to attract customers and convert them into traffic

Makes it financially profitable when suppliers compete for the same market, the formal retail
client count is jeopardized. Due to street vending, a firm may see less sales and have smaller
margins to pay the costs of selling a product.

14
Mwangi (2015) looked into the elements that affect financial performance and found that
profitability was positively associated to leverage, equity capital, and management
competency index, but negatively related to size and ownership structure. Almajali et al
(2012) found the same in their study results as they pointed out to liquidity, size

as well as the managerial competency index as having a statistically significant beneficial

influence on financial success. Ongore and Kusa (2013), on the other hand, based on their
study findings, promoted a somewhat different viewpoint. They believe that management
decisions have the greatest impact on or drive financial performance. A thorough
examination of these viewpoints reveals that a retail firm's financial success is influenced
by a number of other factors. Because the goal of this study is to determine the link between
street vending and formal store financial performance, street vending will be used as a
dummy variable to examine how it affects Gweru clothes merchants.

2.11 Identification of most street vended products linked to conversion rates

One of the most fascinating aspects of retailing is conversion rate control. While this research
focuses on the influence of street vending on the financial performance of formal merchants,
it also seeks to determine if street vending has an impact on retail conversion rates. Several
definitions of conversion rate have been proposed by various academics. Conversion rate,
according to Ayoonso and Yoogalingam (2009), comprises activities other than purchase,
such as signing up for newsletters, seeking a consultant, or participating in a sweepstakes.
Conversion rates are defined by Jackson (2004), as referenced by Ayoonso and Yoogalingam
(2009), for four different types of businesses.

Websites which include retail or e-commerce sites, lead generation cites, content websites and
customer service or websites. Still on the same phenomenon, Pedikaki et al (2011) say that
conversion rate refers \stop the rate of sales volume to number of transactions. Mark Ryski
(2011) defined sales conversion by giving a formula which is stated as Sales conversion =
sales \transaction ÷ traffic. Transactions are defined as unique sales that is, a person who
comes the till with one or several items to buy.

15
2.12 Relationship between Traffic and Conversion

According to Ryski (2011), where there is no traffic counting system in a store, there is no
conversion computation. This is because the baseline for the formula will be absent, making
computation impossible. (Perdikaki et al 2013) agree with Ryski (2011). They conducted
study on the impact of traffic on retail shop sales and conversion rates. Their research shows
that competition has a detrimental impact on sales volume and conversion rate. When there is
competition, there is less traffic than when there are only a few participants. They substituted
the number of retailers in a shopping center for competition and discovered that retailers in
malls or shopping centers with more rivalry have reduced sales turnover and conversion rates.
If their reasoning is correct, one may conclude from their writing that outlets operating in
areas with a high concentration of street sellers have the same difficulty. The location also has
an important influence in influencing the volume of traffic. Stores in areas with higher per
capita income have higher sales volume and conversion rates. This is because a person with a
greater income is likely to face higher search expenses; they may visit a store just when they
want to buy something. Their research also discovered a link between the Dow Jones Index
and the conversion rate, lending credence to the notion that the economy influences consumer
confidence and capacity to make purchases (Perdikaki et al 2013).

2.13 Why Calculating Sales Conversion Rate

Sales conversion is an essential indicator for measuring success. Retailers have acquired a fear
of the “so long as sales or profit” mindset. Ryski (2011) highlights the significance of
understanding sales conversion. Sales and earnings are critical, but there are additional
indicators that must be watched. Ryski (2011) used the following example to demonstrate the
significance of understanding conversion rates. Assume a store had $31 500 in sales on day
one (based on 630 transactions) and sales increased by 40% to $44100 on day two (based on
882 transactions). On both days, the average sale price was $50.00. Most merchants would be
pleased with the result if profitability was the same proportion of sales on both days, but here
is some extra information to consider. On day one, total consumer traffic was 1750, and on

16
day two, it was 3392. This information can be plugged into the new formula (actual formula)
to calculate sales conversion rate as shown in figure 2-2 below

Table 2.1: Conversion rate calculation

Conversion rate = transaction ÷ Traffic

Day 1 Day 2

0.36 = 630÷1750 0.26 = 882 ÷ 3392

Source: Ryski 2011.

Even though the number of transactions or sales increased by 40% on day two, the sales
conversion rate decreased by 10 percentage points, or by 28%. Even though it is encouraging
that sales increased on day two, the reality is that they might have been much higher. To be
more specific, if the merchant could have sustained a 36 percent conversion rate on day 2
(rather than decreasing to 26 percent), 1221 total transactions – or 591 extra purchases –
would have occurred. Assuming that the average sale was $50 on both days, if the conversion
rate had remained at 36% on both days, this would have resulted in an additional $29,550 in
sales. Assuming conversion rates had remained constant at 36 on both days and the average
transaction remained at $50, the merchant would have boosted sales by 94 percent over day
one. According to the above-mentioned literature, conversion rate is the percentage of visitors
that become consumers. It is calculated in the following manner: The number of transactions
divided by the volume of client traffic multiplied by 100. There is little or no research on the
influence of street vending on the sales conversion rates of properly constituted businesses.
As a result, this study suggests that street vending may have an impact on the rate at which
visitors become customers. A client may go to a professional merchant but then change his or
her mind and buy the items from a street seller, who sells cheaper goods. This is common
when clients are price sensitive and quickly move to other suppliers, therefore the study seeks
to determine whether or not there is an influence based on actual data.

2.14 Shopper marketing as a method of increasing conversion rates

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(Silveira et al 2014; Shanker et al 2010; Haris 2010; Flint et al 2012) all concur that consumer
marketing is a new marketing technique that is gaining traction. According to experts,
consumer marketing will most certainly lead to progress in the marketing industry. According
to (McKenzie 2014), it is the "most essential marketing expenditure you could make, as it
looks at the world from the shopper's vintage." There is still another definition that is
consistent with the above ones. All actions undertaken to turn consumers into purchasers are
referred to as shopper marketing. “Management of all efforts that convert consumers into
buyers” (McKenzie 2014). After several decades of utilizing the standard retail technique,
marketers realized they needed to modify their strategy such that it demanded greater client
attention. Customers' focus has migrated from official shops to members of the informal
sector, especially street sellers, for a variety of reasons. The concept of shopper marketing via
exposure to an open global environment, which originated in the United States, appears to be
quite effective in maintaining and recruiting additional consumers to a retail establishment.
According to relationship marketing gurus like Gummerson, attracting new consumers is
more difficult and costly than retaining existing customers. With consumer marketing, one
can easily reject the exclusive relevance of relationship marketing because they are equally
important and operate in tandem.

2.15 The impact of Street Vending on Item per Purchase (Size of an Average Shopping
Cart)

It refers to the size of a shopping basket or the number of items placed in it by the client. A
tiny shopping cart may suggest that consumers have less cash to spend, that items are costly,
or that customers chose to purchase from the informal sector. William (2007). A larger
shopping cart, on the other hand, may suggest that street vending is not impacting customers'
ability to purchase at a formal store, and it may also indicate that customers are purchasing in
quantity due to low prices. Heima (2015). There are several elements that influence the size of
an average shopping basket that a client is prepared to fill. According to a research conducted
by (Bell et al 2013) on customer purchasing habits. The supermarket sector has gotten
increasingly competitive. They pushed the notion in their study paper that shopping behavior
is a significant driver of store choice decisions when stores provide diverse price formats?
With the current state of things in Zimbabwe, where people are suffering money issues as a

18
result of the country's severe liquidity crisis, purchasers or consumers have become extremely
price sensitive, limiting the amount of an average shopping basket that they may create.
Pricing formats, according to (Bell et al 2013), influence shop decisions. In this age, suppliers
of products and services range from casual Illegal Street vending to official small businesses
to larger hypermarkets. According to a Wall Street Journal article that described Bruno's
management, moving the chain from EDLP to HILO demonstrates the significance of the
issue, stating that "the Company's price aware consumers, used to shopping for a
predetermined basket of items, walked away in droves." Although there are exceptions, most
people will not shop in businesses with exorbitant pricing. This is in contrast to Gummerson's
(2002) stance on relationship marketing, which contends that relationship marketing develops
loyal consumers independent of price variations.

2.16 Average Purchase Value (Average Value)

This relates to how much your average consumer spends at the register. The company
determines how this value has evolved throughout time. It is calculated in the following
manner: Total sales multiplied by the number of transactions. Hello, I'm Maa (2015).
Consumers keep comparing prices and purchase cheaper and more convenient items from
street vendors and other unofficial dealers, and then tend to purchase commodities not found
on the street in official shops. Hudson and colleagues (2012)

2.17 Measures governments have used to deal with Street vending to enhance retailers’
average shopping cart

Cross (2000), as quoted in Kayuni and Tambulasi (2009), conducted a 10-year study of street
vending in Malawi and found that “by all logical criteria, street vending should finally
disappear.” Cross (2000) noted, "...despite certain issues and regular attacks, street selling is a
viable and expanding trend." Jimu (2006) concurs with Cross (2000)'s realization when he
asks, "Can the resilience of street vendors to urban authority and the government's drive to
evict them from the streets be a reflection of their power or powerlessness against
marginalization and underdevelopment of their livelihood strategy?"

19
According to Kayuni and Tambulasi (2009), there was nothing like the resilience of a street
vendor in Malawi during the year 2009 when they reported their research, based on the fact
that by April 29, 2006, street vendors had been successfully removed from their business sites
and relocated to their newly built flea markets. Both Jimu (2006) and Cross (2000)'s points
relate to the current Zimbabwean situation, as the Lusaka city administration is contending
with street sellers in the sidewalks. The municipal government is failing to “successfully”
abolish street vendors selling clothing, footwear, and other items off city sidewalks.
According to Chivivi et al (2014), a latest development by the Gweru city council in 2013 saw
the creation of the Global Village Flea Market, which was a success. As a result, the
researcher has discovered that despite the municipal council's efforts to relegate street sellers
to specified areas, they are failing due to bribery, as stated by Bhowmik (2010)

2.18 Reasons for Choice of Trading Location

As per Simasiku (2004), who performed research in Zambia on the influence of company
trade locations? The study's goal was to find out how trading decisions affect firms. The
following are his conclusions.

Individuals interact in street selling for a variety of reasons. Figure 4.2 shows that the majority
(40%) of the 30 street vendors, including former market merchants, engage in street vending
because they have easy access to consumers due to the huge amount of people moving
through the CBD. 30 percent, on the other hand, sell on the streets since it is simple for them
to obtain space within the CBD, where there are no official application procedures, saving
them money. Twenty-three percent sell on the streets to avoid paying rent in the regular
marketplaces, while the remaining 7% are unable to sell enough items in the market owing to
a lack of cash. These findings support De Soto's claim that the informal sector expands as
merchants strive to avoid the costs of formality, such as rigorous rules and regulations, taxes,
and the time and effort required to comply with official governmental procedures (De Soto
1989). By operating illegally on the streets, street vendors in Lusaka strive to avoid all of
these fees.

20
Merchants choose trade locations for a variety of reasons. Traders that sell on the formal
market infrastructure choose to do so because of the benefits of order, security, and a clean
atmosphere. Due of ease access to consumers and nonpayment of rents, street sellers opt to
sell on the streets I contend that order, security, and a clean atmosphere are insufficient
incentives for street sellers to trade from official market facilities. They value access to clients
and the avoidance of taxes; therefore they opt to remain on the streets. Furthermore, they are
preoccupied with satisfying their immediate requirements, and cleanliness and security
become secondary considerations. As a result of having quick access to consumers, vendors
may make more money on the streets, giving them a competitive edge over market dealers.

2.19 Summary

Theoretically, street vending as a part of the informal sector is enveloped in the informal

sector's theoretical framework. The reformist school and the Marxist school are two distinct

schools of thought that help classify street vending.

The reformist school views the existence of street vending in an economy as a source of

employment and advantages for the entire country. The Marxist promotes the concept that the

informal sector is of minor importance. Of which, it helps underprivileged groups because its

primary purpose is to supplement the distribution of commodities and services. Customer

traffic has a direct effect to sales. Sales Conversion depends upon the availability of traffic

after reviewing the above. Considering the literature, this researcher determined that data

might be gathered in order to determine if street vending had an impact on the operations of

formal merchants. This refers to the third chapter of the research, which talks about the

study's methodology.

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 2.20 Conceptual Framework
It's a good idea to draw a diagram of the problem or topic while coming up with research
questions. This is commonly referred to as a conceptual framework. A conceptual framework,
according to (Miles, 1994), outlines the essential items to be studied-key components,
constructions, or variables, and the anticipated relationships among them, either graphically or
narratively.
Conceptual Model:

Figure 1: Conceptual Framework Source

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CHAPTER THREE

3.0 Research methodology and design

3.1 introduction

This dissertation chapter focuses mostly on the instruments used in data collecting, the
rationale for their usage, the data types utilized, data presentation techniques, and analytic
methodologies, as well as their justification for use. The following subheadings will be used
throughout the chapter: research design, target population, sampling methods and techniques,
sampling frame, sample procedure, sample size, data sources, research instruments, data
collection procedure and administration, model specification, data analysis, and presentation
tools. A summary will be provided at the end of the chapter.

3.2 Research Approach

The method utilized in this study is a deductive one. This is the process of assessing
numerical data, according to Kombo and Tromp (2006). It may be used to look for patterns
and averages, make forecasts, evaluate casual associations, and extrapolate results to larger
groups. Quantitative research differs from qualitative research, which entails gathering and
evaluating non-numerical information. In light of this, the purpose of this study was to
determine the influence of street vending on the performance of retail businesses using a
deductive method. This method allowed the researcher to gather detailed data in order to
determine the financial performance of street sellers and shops.

3.3 Research design

Research design, according to (Wyk 2013), communicates or articulates the methodologies

utilized in data collecting and processing, as well as addressing research questions. According
to Person (2002), quoted in Mugova (2015), "research design" refers to a "complete
framework or blueprint used to govern the conduct of a research project." The moment at
which theoretical or policy discussions are transformed into realistic research projects and
research programs that give solutions to the problems is called research design.

23
 Research choice Mixed method
Research strategy Survey
Time horizon Longtudinal
Research approach Deductive
Data collection Interviews, questionairs

3.4 Research Strategy

To collect data from groups of individuals, a survey technique and interview strategy were
utilized, as well as questionnaires, reports, and authentic sources.

3.5 Research Population

The purpose of this study was to see how street vending affect profitability of retail
businesses, using Lusaka’s cairo road as a case study. The study's participants were confined
to those selling in corridors, on streets, and some store owners who had been in business for
more than five years.

3.6 Sampling techniques

Respondents selected based on their convenience, accessibility and proximity to the

researcher. Willing participants will be encouraged to participate.

3.7 Sources of data

In order to acquire data for this study, the researcher employed both primary and secondary
sources. This was due to the fact that both primary and secondary data had advantages and
disadvantages. Primary data provides personalized information, but it is costly to collect and
takes a long time to process. Secondary data is typically less expensive to get and may be
analyzed in a fraction of the time it takes to analyze main data. You may need to pull out the
information to locate what you're searching for because it was acquired for different purposes.

24
3.7.1 Secondary data
Secondary data, according to Saunders et al (2009), is information that has previously been
collected for another reason and may be found in journals, text books, seminar papers,
archives, and so on. Secondary data is now defined as information that already exists.
Secondary data can be compared to data from original sources. Time is saved by using
secondary data (Ghauri, 2005). As a result of the researcher's ability to obtain knowledge
from journals and textbooks via the internet, the problem is simplified. It may now be
accessed from any place. That is true even when traveling, as opposed to the past when it was
restricted to libraries. The library has now been transported to the mobile phone thanks to the
internet. It is significantly less expensive than other data gathering methods since it eliminates
travel expenses, accessibility costs are lower, and it is available in huge quantities. (Source:
Ghauri, 2005).

3.7.2 Primary sources

In addition to secondary sources, the researcher will employ primary sources to obtain
information. Primary sources, as defined by Degu and Yigzow (2006), are data acquired for
the first time, and are often collected through interviews, field observations, and surveys.
Primary data sources offer the researcher with accurate, first-hand knowledge. As a result, the
researcher wants to know how busy the vendors' customers are, how much money they make
each day, and how many transactions they make per day. The seller also wants to learn what
motivates people to buy from street vendors rather than established stores. Because it is first-
hand knowledge from the source, data received from primary sources is fundamental and
impartial. The material received from primary sources is actual data gathered from the site. It
comes straight from the market and the intended audience.

3.8 Data analysis

Questionnaires and interviews were employed as data collecting techniques to acquire

information. The researcher was able to answer the research goals using these major data
collection techniques.

25
3.8.1 Questionnaires
A questionnaire, according to Phoofolo (2008), is a quantitative data collecting tool whose
primary goal is to acquire valuable information. Questionnaires allowed the researcher to be
more consistent in his or her asking, resulting in data that is much easier to analyze. Each
question was written precisely and carefully to prevent ambiguity, which might lead to biased
replies based on misinterpretation. Both open and closed questionnaires will be used to collect
qualitative and quantitative data.

Respondents were able to maintain their anonymity since they were not obliged to reveal their
identities, simply their opinions on the study. The use of questionnaires aided the research
since many people are more comfortable writing down privately and are not adept at face-to-
face conversations. Questionnaires are a smart and efficient method to reach out to individuals
who travel frequently (Research Consultation guide, 2004). The only two issues were that
respondents did not always comprehend the right viewpoint of the questions and so provided
biased data to the researcher. The researcher made the questions more understandable by
simplifying them. Since she conducted the questions in person, the researcher also provided
additional explanations and interpretations. Respondents also took longer to respond, and
some were unable to respond at all, allowing opportunity for interviews to be used. To deal
with this, the researcher will wait for the respondents to complete the questionnaires before
collecting them.

3.8.2 Interviews
Because some respondents were not literate enough to read, interpret, and write proper
responses, the researcher used interpersonal interviews as the primary data collecting method.
More respondents, particularly suppliers and consumers who prefer verbal interaction to
surveys, will be able to offer their opinions through interviews. In this study, interviews
assisted in providing additional explanation, especially to those respondents who did not
understand, resulting in correct information being supplied. Data gathered through interviews
has been proven to be more trustworthy and accurate, as well as being devoid of biases.
Because more participants preferred talking over writing down their replies, interviews were
more flexible. Observing the respondent's emotions and sentiments also made it easier to
figure out whether they were lying or speaking the truth. However, the presence of the

26
researcher during an interview impacted the way the questions were answered, resulting in
skewed results at the end of the day. Some of the respondents may have been afraid to speak
openly and therefore provided skewed information. The researcher had to keep his true
identity hidden and participate in informal conversations. This researcher also used humor to
relax the subject and obtain a sense of his or her anxiety. The researcher also questioned
fellow students on work-related learning about additional information because they are more
familiar with the researcher's needs.

3.9. Data validity and reliability

3.9.1 Reliability
The instrument's precision and accuracy are referred to as reliability. If employed on a similar
group of people in a similar situation, the instrument should produce similar findings. To
ensure the tool's dependability, the precise and thorough phrasing of each question was taken
into account to minimize ambiguity and direct responders to a certain answer. As a result, the
respondents were made aware of the interview's purpose and the need of providing accurate
answers. The consistency of a research study or a measuring test, according to McLeod
(2013), is referred to as dependability. If you weigh yourself throughout the day, you should
get a comparable number at the end of the day. Scales that generate different weight
measurements each time they are used are ineffective. The content validity of the surveys also
ensures that they are given to respondents in a consistent manner. All surveys were given to
the participants by the researcher directly. The researcher did his utmost to write surveys in
plain language that would be easy to interpret. The researcher assisted people who were
illiterate in filling out their surveys.

3.9.2 Validity

According to Samkange (2005), the quantity that the instrument is supposed to measure is
defined as validity. The instrument should reveal the object that it is meant to measure. The
researcher should concentrate on content validity, which refers to how accurately an
instrument assesses the variables under investigation. As a result, content validity is
concerned with how well the researcher asks questions and extracts and obtains correct and
usable data. The content validity of the study tools was assessed by administering the

27
questionnaire to managers, In Charges, and consumers. The interview guide was created
specifically for street sellers.

3.10. Ethical considerations

Only consenting individuals were included in the study. As a result, no responder was
compelled to participate in this survey. Only those who were willing to participate in the
interview were chosen. During data collection, the researcher put the subjects' safety first,
making sure they were not harmed in any way. Throughout the research effort, the researcher
maintained strict secrecy. Finally, all participants were thanked for their time and effort in
participating in this study.

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4.0 CHAPTER FOUR: Data analysis, Presentation and Discussions

4.1 Introduction
This chapter summarizes the results of the analysis and discusses them in accordance with the
technique described in chapter three. This chapter is also in charge of data visualization,
analysis, and interpretation. The chapter is broken into two sections: section A, which is
concerned with the demographic presentation of instrument rates, and section B, which is
concerned with data presentation, analysis, and interpretation.

4.2 Section A: Demographic Presentation

The data for this study was collected using two major instruments: questionnaires and
interviews. It did, however, employ certain secondary data sources to get the information
needed for the study.

The number of candidates interviewed and the quantity of goods they produced every day are
shown in Table 1. This is evidenced by the average number of items sold every day, which
fluctuates between 4 and 7. The average number of items sold each week in retail stores is
between 26 and 51, resulting in an average profit of 236 and weekly profits ranging from
1,050 to 2,170, resulting in an average profit of 1,652.

A quick glance is seen in figure 4:1 the response from the street vendors which has been
explained in table 4:1

Table 4.1: Street vendors profit per week

AVERAGE AVERAGE PROFIT

STREET PROFIT
/N PRODUCTS PRODUCTS (PER
VENDOR (WEEK)
(DAY) (WEEK) DAY)
1 SAKALA 4 30 240 1680
2 ALEX 5 32 300 2100
3 JONATHAN 5 38 150 1050
4 KASONGO 4 29 310 2170
5 BUPE 7 51 180 1260

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 6 SHADDY 8 28 300 2100
7 RICHARD 5 26 443 3100
8 CHANSA 8 31 329 2300
9 MULENGA 7 42 286 2000
10 PHILLY 10 40 343 2400

Illustrates that street sellers participate in an illegitimate industry that has the potential to
develop if structured, despite the fact that they are not taxed at the time of sale. A lot of
motorists may benefit from the drive-in and buy method, as they may not have had the time or
desire to seek for items in retail stores. Most motorists gain from street purchases because of
the degree of negotiating that occurs between the seller, usually known as the vendor, and the
motorist, also known as the buyer.

STREET VENDOR PROFIT RESPONSE

4000
PROFIT

2000
0

STREET VENDOR NAME

PROFIT(PER DAY) PROFIT (WEEK)

Figure 4.1 graphical representation of profit from the graphical representation, it can be
observed that the profit of street sales is higher on average.

The items that are regularly sold on the streets are listed in Table 4:2. Although there are
numerous items sold on the streets, these were the most popular at the time the study was
performed. The average price per product is shown in the table's third column.

Table 4.2: Commonly purchased commodities and their average prices in retail stores

NAME OF AVERAGE PRICE

s/n PRODUCT (KWACHA)

30
 1 CLOTHES 120
2 SHOES 160

3 ELECTRONICS 80
4 WATCHES 250
5 COSMETICS 300

6 VEG & FRUITS 60

Cosmetics are the most commonly purchased items from retail stores by street sellers, as seen
in Table 4.2. Different types of timepieces agree with this. A further interview revealed that
different models of timepieces are occasionally supplied on credit to street merchants. The
store is aware that providing street vendors items to sell is another source of revenue. During
unstructured interviews, it was also discovered that the retailer's pricing to the street seller is
lower than the price sold in the retail shop. The items provided to street vendors for resale are
not receipted, according to the investigation.

AVERAGE PRODUCT (PRICE IN KWACHA)

6 VEG1&CLOTHES
FRUITS
5 COSMETICS6%12% 2 SHOES
31% 17%
3 ELECTRONICS
4 WATCHES 8%
26%

1 CLOTHES 2 SHOES 3 ELECTRONICS

4 WATCHES 5 COSMETICS 6 VEG & FRUITS

Figure 4.2: average product prices

Various varieties of cosmetics are the highest and most lucrative of the primary items that
have been recognized as the most frequent products, with 32 percent, followed by different
types of watches with 26 percent. However, it was said that various sellers must adhere to
their items since selling what another vendor is selling is a violation of the street vending

31
quiet regulations, which might lead to the alienation of the specific street vendor in violation
of the "street law."

Table 4.3: Retailer average profit per week

PRODUCTS AVERAGE PROFIT

RETAILER SOLD (K) (WEEKLY)
SHOP A COSMETICS 15,000
SHOP B ELECTRONICS 20,000
SHOP C SHOES 17,000
SHOP D CLOTHING 12,000
SHOP E BAGS 8,000

Cosmetics are again among the most profit-making goods (K1500), owing to the fact that the
mentioned retail business is a cosmetic and grocery store. Due to the rapid sale of electronic
gadgets, other retail businesses, such as those in electronics, appear to generate a higher profit

AVERAGE PROFIT (K) (WEEKLY)

SHOP E
BAGS SHOP A
COSMETICS
SHOP D
CLOTHING

SHOP B
ELECTRONIC
SHOP C
S
SHOES
(K20,000).

Figure 4.3: pie chart presentation of coomon bought goods from retail.

The pie chart (figure 4.3) shows that different motorists are particularly interested in the
electronic category. Car products, calculators, heating elements, and other electrical
accessories are some of the most prevalent items.

32
Regardless of the sales, street selection is critical. Anyone involved in street vending must
choose a street intelligently, even though it must be accepted by the existing street sellers.
Table 4,4 discusses the criteria for selection.

Criteria for selecting a street are listed in the table below.

CRITERIA RATING (OUT OF 10)

FRIENDSHIPS 5≤
TRAFFIC 8 to 10

TRAFFIC LIGHTS 8 to 10
ROUTE TYPE 5 to 10
PRODUCT SAFETY 10

The researcher devised a set of criteria for selecting a street for business in order to
completely comprehend the process. Following the choosing of the street, a vendor must
obtain permission to trade from an existing vendor, but only in a unique commodity. In
comparison to Lumumba and Kafue roads, a decent strret, especially from surbubs like
Church road and Great East road, is more viable.

Table 4.5 shows a comparison of diffrent street sale of the same product per day.

Cosmetics Electronics Clothing

(%) (%) (%)
Church
road 42 39 30
Cairo 21 22 29
Burma
road 12 10 16
Kafue
road 10 12 10

33
 Lumumba
road 15 17 15
A study of similar items has demonstrated that the kind of street selection is critical in raising
sales and maximizing profit.

STREET TYPE SELECTION

50
PERCENT SALES

40 42
39
30 30 29
20 22
21
16 17
15
10 12
10 12
10
0
Church road Cairo Burma road Kafue road Lumumba
road
STREET NAME

Cosmetics (%) Electronics (%) Clothing (%)

Figure 4.5: Street sales of different products

Figure 4.5 shows that the streets in urban regions have a higher turnout than the streets in peri-
urban areas.

4.3 The impact of Street vending on customer count of retailers.

Questionnaires were utilized in the study to collect information from shop owners and
customers. Data from street vendors was also gathered via semi-structured interviews. This
information was obtained in relation to the impact street vending has on the customer count of
formal businesses.

Table 4.3: Responses of Retailers on Customers that visited the Shop in the following
years:

Year 0-50 51-100 101-150 150+

2018 2 4 2 2

34
 20% 40% 20% 20%

2019 6 2 2 0

40% 20% 20% 0

2020 4 2 2 2

40% 20% 20% 20%

Source: field data

The researcher used a four point Likert scale to grade responses of shop managers on how
many customers visited their shop in 2018 and 2020. The grades were coded from left to
right. 0-50 range of customers is represented by 1, 51-100 = 2, 101-150 = 3, 150+ =4. In 2015
the customer count of firms reduced generally by 20 %. Customers had a restricted option of
where to buy in 2018, when street vending was not as bad as managers said in their replies,
where 80 percent of shops had a client count of more than fifty individuals each day to save.
This was demonstrated by the majority of customers who stated that they had no choice but to
buy from stores today that there are so many providers to select from. Another explanation for
the drop in the number of consumers visiting a business each day from 50-100 to 0-50 is
greater knowledge of online buying due to the influx of online Chinese merchants such as
Alie Express and Sammy Dress, as one respondent put it.

, “…now it is possible to purchase from China using my Econet MasterCard. Instead of me

buying at premium prices I can order quality goods for myself from websites such as Alie
Express and Sammy Dress…”

4.1 To investigate the impact of street vending on the average shopping and how it

35
 street vending as a cause of reduction in their
average shopping

Agree Disagree Strongly agree Strongly disagree

Customer responses show that 68% of the “respondents” buy from the street vendors as

shown on table 4.6. One of the reasons was captured in an interview with one of the

customers

“The clothes offered and those offered by some small and medium retailers like boutiques are
merely the same and by virtue of street vendors being outdoors they have greater proximity to
the customers....”

Not only are they near to consumers, but they also are selling at low rates when on the shop's
porch, as Gumbo pointed out (2015).

In their research study on the techniques and advertising strategies employed by flea market
sellers, Chivivi et al (2014) promote the concept that entrepreneurship is associated with
innovation, creativity, and imagination. They argue that informal traders have created tactics
and schemes to gain people's trust while also influencing their purchase decisions. As a result,
people who previously purchased clothing from stores may now purchase some of their
apparel on the street. According to Chivivi et al. (2014)'s research, this indicates that the
average purchasing cart of the businesses is jeopardized. This, however, indicates a
substantial adverse link between street vending and the average shopping in Lusaka town.

36
To find out how traders make their choices on trading location.

Frequency
50%
45%
40%
35%
30%
25% 47%
20%
15%
10% 21% 20%
5% 12%
0%
location traffic Unavalaibility of Expected Return Ease of setting up
Authorities shop

Reasons for choice of location Column2 Column1

47% of the respondents were of the view that traffic within the location determined their
choice of location. 21% the respondents attributed their decision being based on expected
return from a particular location. 20% of the respondents attributed their decision making
being based on ease of setting up t the location.

“Location choice is very important for us vendors as it determines to a large potion your
volume of sales”

It can then be discussed that street vendors find a number of customers in high density places
like along busy highways e.g. Cairo road, Lumumba road and also along corridors of formal
retail shops. Street vendors say they target customers who can’t afford prices from retail
shops; they are easy to market to as they usually seek cheaper alternatives from retailers.
Some vendors attributed to unavailability of authorities in said areas, this allows the vendors
to trade without fear of losing their products to authorities. Others attributed their location
choices to ease of setting up shop; vendors have to come to mutual agreements with other
vendors so as to operate in certain areas. Vendors are extremely territorial and may not allow
others to operate were they are found. This influences the location choice for many new
vendors.

37
CHAPTER FIVE: DISCUSION OF THE FINDINGS

5.1 Introduction

The study sought to determine the relationship between street vending and the financial
performance of retailers in lusaka. Using tables and diagrams Graphs were used to present the
data, and conclusions were drawn that will be used in the future.summarized here in
accordance with the objective

5.1.1 Relationship between street vending and retailers (customer count)

According to the research, street vending was a factor in the decrease in customer count of
retailers between 2018 and 2020.

With the arrival of street vendors, customer counts dropped by an average of 20%.
Respondents pointed out that the growing number of street vendors on the streets makes it
difficult for retailers to increase their customer count given the current situation Outside on
the pavements, vendors selling similar goods to those of retail shops have developed the
skills to entice customers, according to Chivivi et al (2014). The market did not expand as a
result of the arrival of these vendors, but rather became divided as shops began to share space
with street vendors, as the majority of retailer responses indicate.

5.1.2 The Relationship between Street Vending and Conversion Rates of

Retailers

When it comes to conversion rates, the study discovered a link between street vending and
retailer conversion rates. Two variables, namely street vending and overhead costs, were
found to be significant, and with the assumption that the data provided was correct, a
percentage increase in street vending was found to be significant. Vending will result in a
2.121804 percent increase in conversion rate, though it is arguably not very healthy for
retailers. The cost of overhead has a negative impact on conversion rate. Changing overhead
costs by a single percentage point results in a 0.0000578 percent decrease in financial

38
 performance. Costs are passed on to customers, who see "good Samaritan behavior" in
street vendor tactics of negotiating for low prices, as one manager put it.

5.1.3 The Effect of Street Vending on Average Shopping of Retailers

The research also discovered an inverse relationship between street vending and the
average shopping retailers. According to Nyamwanza (2014) and Chivivi et al., street
entrepreneurs are taking some of the customers (2014). Customers are now looking for
information and comparing prices. In light of this, customers are buying some of their goods
on the street, reducing the value of their shopping baskets in formal retail shops by 20%

5.2.1 The Impact of Street Vending on Customer Count of Retailers.

Street vending has a detrimental influence on the client count of Lusaka stores. This was
demonstrated by a 20% drop in the number of customers served by official shops since the
beginning of street vending. According to Pedikaki et al. (2009), it is critical to have a greater
client count and turn it into sales. According to Heima (2015), street vending has an impact on
client count as an indicator of retail financial performance.

5.2.2 The effect of street vending on average shopping carts retailers

Street vending has a negative influence on average store sales. This is supported by the fact that
80 percent of merchants thought that a reduction in average shopping cart value is due to
vendor activity. This conclusion is supported by (Bell et al 2013), who argue that pricing
formats influence purchase behavior. Customers who compare costs tend to buy fewer items
from stores and search for lower-cost options from street sellers. According to the research,
21.85 percent of clients buy due of the price.

5.2.3 To find how traders make location choice

Many merchants base their site selection on traffic since greater traffic implies more
opportunities for their firm. Street sellers frequently choose their position depending on the
absence of local officials who disrupt their operation by chasing them away and occasionally
seizing their products. Area selections are frequently made based on the simplicity of
establishing a business at the given location. The easier it is the more likely to setup

39
operations. Another reason for trader’s location is the expected return, vendors often select
locations were traffic coming in pays high prices for their goods. They base their location
decision on what they expect to make from a specific area

40
 6.0 CHAPTER SIX: CONCLUSIONS AND RECOMMENDATIONS

6.1 Introduction

This chapter examines the study's conclusion, implications, and recommendations, which
will be useful to the Local Government Authority as well as research on future studies on
the subject.

6.2 Conclusion

In general, the study's main conclusion is that there is a relationship between street vending
and financial performance of retailers, implying that the Ho hypothesis was rejected. Street
vending in Zambia cannot be taken from the Marxist school of thought, according to the
theoretical framework of the informal economy. It does not supplement the formal sector,
nor can it be classified as a marginal pole providing marginalized services, as the school
suggests. vending on the street merely creates employment, and citizens can make a living
from it. In light of this, street vending in lusaka can be classified as reformist.

6.3 Implication

The data generated by assessing the impact of street vending on financial performance of
retailers could be used to suggest future research topics or assist other specialists in selecting
actions that might be appropriate for a specific subject area of investigation study.

The discovery that street vending has a link to retail business necessitates the local
government intervening to educate vendors on how to keep the city clean.

6.4 Recommendations

6.4.1 Construction of organized more markets

The city council could coordinate the building of one or two new flea markets, similar to the
Global Village flea market, to accommodate the population of street vendors who are
unlawfully operating and generating issues for legitimate shops. Given the current condition of
things, the government should ensure that amenities are provided before implementing Bingu

41
Wamutharika's strategy of Kayuni and Tambulasi (2009) In Malawi, President
BinguWamutharika mobilized the police and army to remove street sellers in 2004. The project
(Dongosolo), which simply means "order restoration," was a huge success, cleaning up
Malawian cities. It is preferable to compete with a vendor at a flea market rather than on your
doorstep.

6.4.2 Shopper Marketing

Retail stores should engage in recently developing retail sector strategies such as shopper
marketing. Any action done to turn consumers into purchasers is referred to as shopper
marketing. The more the retailer's affectivity, the stronger their financial muscles. Shopper
marketing is a process that begins outside of the store's walls. Retailers in Lusaka should
experiment with this Western business model. They should pay close attention to what is going
on in the aisles and seize every chance. According to McKenzie (2014), shopper marketing has
shown to be a beneficial approach for US businesses. Quoted saying this strategy “is the most
important marketing investment you could make, as it looks at the world from the shopper’s
vintage”.

6.4.3 Relationship Marketing

Relationship marketing is recommended for businesses who are suffering a significant drop in
their average shopping basket and customer count. This technique is one of the finest
investments a shop can make to improve client count and overall financial performance. It is
said that losing one client is highly costly since gaining one is like discovering a secret gem.
Maintain a long-term connection with your consumers and keep them as captives so that they
grow loyal to you and disregard competitors.

6.4.4 Continuous Research and Development

It is important to conduct a continual research and development program as a retailer to ensure
that you stay ahead of your competitors. By genuinely providing a suitable environment for the
client, street sellers may feel the heat of fierce competition. Always know what your consumers
want, provide a large and rich selection, provide service that makes them feel like kings and
queens, allow them to enjoy the experience of being in your premises, and allow for mass
media communications, visual merchandising, and in-store communications. If Wal-Mart can

42
profit from such methods, why can't Jet, Edgars, Topics, Meikles, Vintage, and Fashion
Discovery? Investigate what clients require and produce what they want.

6.4.5 Designated vendor location

Street vending can be organized such that the government defines certain vending zones. This
will provide merchants more room to operate, as well as retailers more freedom to conduct
their businesses without interference from vendors. These locations may also play a role in
increasing traffic for vendors, as clients may now purchase more from street sellers as a result
of the structured service provided.

43
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46
 APPENDICES

Appendice 1: Questionnaire

47
 CAVENDISHT UNIVERSITY – ZAMBIA

BACHELOR OF ARTS DEGREE

DATE:
TIME:

PARTCICPATION WAS VOLUNTARY

INTERVIEWER’S INFORMATION

NAME:

COMPUTER NUMBER:

PURPOSE OF INTERVIEW:

PERSONAL INFORMATION – STREET VENDOR

NAME:

AGE:

VOCATION:

LEVEL OF EDUCATION:

PERSONAL INFORMATION – RETAILER

NAME:

48
AGE:

VOCATION:

LEVEL OF EDUCATION:

INTERVIEW QUESTIONS – STREET VENDOR

1. How long have you been street vending?

a. Less than one year ( )
b. More than one year ( )
c. More than two years ( )
d. Cannot remember ( )
2. Do you wish to street vend for the rest of your life?
a. Yes ( )
b. No ( )
c. Maybe ( )
3. What is the most common product that your sale?
a. Cosmetics ( )
b. Clothes ( )
c. Appliances ( )
d. Anything ( )
4. When can you say the business is good?
a. Morning ( )
b. Afternoon ( )
c. Afternoon ( )
5. How much do you approximately make per day
a. Less than K500 ( )
b. More than K500 but less than K1000 ( )
c. More than K500 ( )
6. What street do you think is good for business between Cairo and church road?
a. Cairo ( )
b. Church road ( )
c. Any other ( )
7. Do you have a common relationship with the retailer?
a. Yes
( )
b. No ( )
c. Not really ( )
8. If the answer to 7 is good, what are the repercussions once that trust is broken
a. No business on credit ( )

49
 b. Alienation by other street vendors (
)
c. Low income (
)
9. How do you feel to learn that the business is illegal?
a. Bad (
)
b. Very bad ( )
c. Disappointed ( )
10. What happens when your items are confiscated by council police?
a. It’s a loss ( )
b. we appeal for our products (
)
c. we have a mutual understanding ( )
INTERVIEW QUESTIONS – retailer

1. How long have you traded with street vendors?

a. Less than one years ( )
b. More than one year ( )
c. More than two years ( )
2. How many of the customers you receive per day are street vendors?
a. More than 5 years but less than 10 years ( )
b. More than 10 years ( )
3. How much profit do you realise from street vendors?
a. More than K500 but less than K1000 ( )
b. More than K1000()
4. How is the relation with street?
a. Good ( )
b. Bad ( )
c. Excellent ( )

End of interview

Time;

Date;

50