WAREHOUSE MANAGEMENT PRACTICES AND PERFORMANCE OF RETAIL STORES IN NAIROBI CITY COUNTY, KENYA

Brenda Jebet Rotich, Dr. Charles Ndeto

Abstract


The general objective was to determine the influence of warehouse management practices on the performance of retail stores in Nairobi County, Kenya. The specific objectives were; to determine the influence of warehouse security management practices and to determine the influence of warehouse automation management practices on the performance of retail stores in Kenya. For the purpose of this study theories on effects of warehouse management practices were reviewed to form its conceptual basis. They include; revealed preference theory and transaction cost analysis as explained in the proceeding sub-section. This was done through a survey administered through questionnaires. The population of the study was the top five retail stores in Kenya as per the GAIN data in 2023, which was determined by their annual food sales for the Nairobi outlets only for the 2023 calendar year. The unit of analysis was the individual retail stores while the unit of observation which defines the independent elements in a population were the employees in the warehouse and procurement department composed the of warehouse manager and procurement manager. This sampling frame was beneficial in ensuring that the retail firms studied have several branches to sufficiently address the research objectives. Primary data was collected by use of structured questionnaires and analyzed using SPSS. The questionnaire was developed based on the research questions outlined in Chapter One. A pre-test was conducted to test the validity of the questionnaire and identify possible problems before data collection commences. The study used descriptive statistics to collect, analyze, and tabulate the data. These include frequencies, measures of central tendencies specifically the mean as well as standard deviation as a measure of dispersion. Regression analysis was conducted using the linear regression equation. The multiple regression analysis revealed that all variables positively impacted retail performance: security management (B = 0.338, p < 0.05), and automation management (B = 0.392, p < 0.05). Automation management practices had the strongest impact, highlighting the importance of adopting technology in retail operations. The study concludes that improving warehouse management practices leads to better retail store performance by enhancing efficiency, reducing losses, and improving customer service. It recommends that retail stores implement robust security measures, and embrace automation technologies to optimize their operations and remain competitive.

 

Key Words: Warehouse Management Practices, Warehouse Security Management, Warehouse Automation Management, Performance of Retail Stores 


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