EFFECT OF INVENTORY CONTROL STRATEGIES ON PERFORMANCE OF RETAIL CHAINS IN KENYA. A CASE OF NAIVAS SUPERMARKET
Abstract
This study pursued to evaluate the effect of inventory control strategies on the performance of Kenyan retail industry. Retail business is vital in any growing nation and account for over 65% of the GDP. This is why nations must continually invest in this industry. Over the previous two eras there had remained a steady growth of retail chains and most companies were fighting to be market leaders. Amid all this competition retail organizations continued to experience allot of challenges which includes but not limited to; looking for new markets, unplanned rapid expansion, poor governance and weak controls. All this was as a result of poor inventory control strategies. The broad purpose of this study was to analyze inventory control strategies effect on performance of retail chain in Kenya. Primary and secondary Data collection was done. Questionnaires were used to collect primary data and secondary data by use of journal, reports, books and the internet. This study examined the effect of consignment inventory and electronic data interchange (EDI) on the performance of retail organizations in Kenya with a keen interest on the employees of Naivas supermarket with a target population of 125. The sample study of the study was 95 and this was derived from Yamane formula (1967). This study analyzed both descriptive and inferential analysis. This study found out that there was significance relationship between the independent variable and dependent variable. Consignment inventory and electronic data interchange (EDI) had a positive correlation with performance in retail chains. This study recommended that for retail chain to continue increasing their performance they must embrace and focus more the inventory control strategies to have competitive environment in the dynamic business environment.
Key Words: Consignment Inventory, Electronic Data Interchange (EDI), Retail Organization
CITATION: Ndigwa, D. M., & Moronge, M. (2019). Effect of inventory control strategies on performance of retail chains in Kenya. A case of Naivas Supermarket. The Strategic Journal of Business & Change Management, 6 (3), 343 – 355.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i3.1321
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