Effect of store layout on sales performance among supermarkets in Nairobi County, Kenya

Abstract

The supermarkets in Kenya are confronted by numerous factors that hinder their ability to deliver the best sales results. Competitors are increasingly becoming more formidable and diversified between local and international players, customers’ demands are more sophisticated and buyers are more knowledgeable, technology is rapidly advancing, and all these have created a highly competitive retail environment. Therefore, this study aimed at exploring the effect of store layout on the sales performance of the supermarkets within Nairobi County, Kenya. The specific research objectives were to establish the effect that placement of products, store lighting, product differentiation and product access has on the sales performance of supermarkets in Nairobi County Kenya. The study was therefore informed by Gestalt theory and Goal-Setting Theory. Descriptive research design was used. The target population was 202 and a sample of 134 respondents which included managers, supervisor and staff from Carrefour, Naivas, Chandarana Foodplus and Quickmart supermarkets in Nairobi County, Kenya. The response rate was 77.6%, which indicates that 104 of the surveyed population participated in the study, which enhances the likelihood that the results are representative of the target population. The data was collected through questionnaires that were structured. Quantitative data analysis mainly involved use of descriptive as well as inferential methods. Descriptive statistics includes the mean and standard deviation, which gave measurements to the data in a summarized manner. Inferential statistics entail correlation and regression analysis, whereby the potential relationships shall be studied and hypotheses tested. The study established that placement of products has a positive effect on sales performance among supermarkets in Nairobi County, Kenya. Similarly store lighting positively impacts sales performance among supermarkets in Nairobi County, Kenya. Thirdly, product differentiation has a significantly positive effect on sales performance among supermarkets in Nairobi County, Kenya. Lastly, product access has a positive and significant effect on sales performance among supermarkets in Nairobi County, Kenya. The findings implied that the management should prioritize strategic product placement to enhance sales performance. Management should ensure that stores are well-lit to create an appealing shopping environment, highlight product features, and improve the overall customer experience. Supermarkets should diversify their product offerings and focus on unique selling points, such as quality, affordability, or exclusivity, to stand out in a competitive market. Management should optimize store layouts, ensure efficient distribution channels, and minimize barriers to product access to enhance customer satisfaction and drive sales. Future research should investigate the role of customer service quality on sales performance, as it directly impacts customer satisfaction and loyalty. The effect of pricing strategies, such as discounts, promotions, and dynamic pricing, on sales performance could be examined. Also, the influence of technology, such as self-checkout systems and mobile payment options, on consumer behavior and sales could be explored. Additionally, future studies should explore the effect of store ambiance, including factors like music, scent, and temperature, on sales performance.