INTERNAL FACTORS AFFECTING SLAE OF A MULTICHAIN RETAIL STORE

Abstract

The major competition for such stores came from retail giants such as Reliance Fresh, Big Bazaar and Spencer. Also, the recent entry of Walmart into the Indian retail market posed serious challenges as the competitive landscape was heating up. The advent of online grocery shopping and its rising popularity owing to the convenience and array of shopping options also added to the challenges which stood ahead. Grofers, which was a low-price online supermarket present across 25 cities and Big Basket, which was known for its fresh fruits, vegetables, pulses, spices and beverages were enjoying an exponential increase in their customers. Whether start-ups or established retail stores, all brands were aggressively expanding their outlets within the country across Tier- I, Tier- II and Tier- III cities offering customized products and prices depending upon the location of the retail store. In times of such a highly competitive environment in the grocery retail industry, most retail chains looked to offer a point of differentiation which would help them garner more customers over the competitors. Therefore, there is need to analyze the factors that attracted the customers to the retail stores so they could position themselves accordingly for their existing and prospective customers. This research can help stores in increasing their sales by modifying the in-store experience of the outlets along with an understanding of the optimum size and location of the stores. Reliable retail sales prediction of all types of stores can not only help in making correct inventory purchase decisions but also in determining which new products to be launched. Therefore, the main aim of this paper is to propose an enhanced method based on stepwise regression and descriptive modelling of the predetermined data to forecast the retail sales of a multi-chain grocery store in different locations. The factors include item visibility, size of store, type of products, MRP of products, establishment year, weight of products, fat content of products, type of store.

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The research findings in this paper indicate that display location and other variables affect the sales of a multi chain grocery store. The data, together with necessary information collected in the same study, help in determining insights into supermarket shopping behavior and suggests ways on how merchandising efficiency might be improved. One of the most difficult decisions a retailer makes is to determine the location of the store. As nowadays convenience is so important to the consumers, a retail store can grow or decline solely depends upon its choice of location. Therefore, the research will also be performed indicating which type of store should be opened in which location.