Analyzing the course of turmoil in Kenya’s retail sector

Abstract

Purpose - The retail sector in Kenya is one of the main drivers of the Economy. This paper sought to empirically analyze the factors leading to the collapse of some of the major Supermarket chains and also to understand why some of them are struggling to operate. Design/methodology/approach -The conceptual paper is based on the critical analysis of important data from internal and external industry publications, published interviews, and Regulatory Authorities reports. Findings –It was evident that mismanagement and competition especially from online shopping are some of the main factors that have affected the retail chain sector. Supplier’s failure to facilitate continuous stocking and scrupulous employees has also contributed significantly to the failure of the retail chain sector in Kenya. Originality/value – This paper is the first to propose and provide a comprehensive insight into understanding the reasons for struggling and collapse of the major players in the retail chain industry. The paper also proposes scientific research to statistically explain the effect of each variable on the retail chains.