Investigation into the effect of expansion of the supermarkets on small scale retail traders in Buruburu shopping centre in Eastland Nairobi

Abstract

The supermarkets in Kenya have been rapidly expanding from the city centers where they were originally located to other places such as slums areas and those areas inhabited by low and middle-level income earners. It is therefore of great significance to investigate what effect the expansion of supermarkets has had on small scale retail traders. The study sought to investigate the effect of expansion of supermarkets on growth, on the market share and their influence on financial performance of small scale businesses in Buru Buru Shopping centre in Eastland Nairobi. This study used survey design as it gives in depth information when investigating into the effect of supermarket expansion on small scale businesses. The target population of the study was the 110 registered small businesses in Buruburu shopping centre. The whole population was used when collecting the data for the study. The researcher used questionnaires as a tool of data collection. The data collected was analyzed using descriptive statistics method which included frequencies and percentages and the results were presented using tables and charts. The study found that establishment of supermarkets in the area had had hindered the growth of small businesses, reduced their financial performance, and reduced their market share. The study concludes that establishment of large supermarkets in areas that were predominantly the reserve of small businesses hampers their growth, profitability and market share. The study recommends that policy makers need to take cognizance of the impact that the expansion of supermarkets have on small businesses. The small business owners should also invest more on customer relationships and quality goods if they are to grow despite the presence of large supermarkets.