The Impact of Retail Design on Customer Purchase Decisions: a Case of Two Rivers Mall, Nairobi County - Kenya

Abstract

The retail industry in Kenya is facing stiff challenges with many renowned outlets closing or exiting the market. Studies have shown that the growth of online retailing has detrimental effects on the performance of offline retailing. Unless experiential shopping is enhanced, offline retailing in the country will continue to decline. Recent studies about retailing in Kenya show that customers desire experiential shopping. However, there are hardly any studies on retail design in the country. This is despite the retail design having been identified as the best subject to enhance experiential shopping. There is still a gap in understanding the impact of retail design on purchase decisions. This research project aimed to bridge the gap by determining the impact of retail design on customer purchase decisions in Two Rivers Mall, Kenya. Retail design variables were identified through a deductive research approach. A sample size of 386 respondents with a confidence level of 95% and a margin error of 4% identified through convenience sampling was used to achieve the results. The primary data collection tool was a structured questionnaire with a 7-tier Likert scale administered through a web link to the customers in the mall during the study period. SPSS version 26 was used to analyse data. A mixed-method research approach was used for the study. The findings provided evidence that there is a statistically significant relationship between retail design and customer purchase decisions at Two Rivers Mall; therefore, the null hypothesis was rejected. The findings build on the existing evidence of the role of retail design in the retail sector. The shopping experience in Kenya will be enhanced through the application of the findings of the study. The findings of the study will also contribute to the existing limited literature on retail design, especially in the context of Kenya. The study was delimited geographically because it only dealt with Two Rivers Mall, Kenya, and its stakeholders. The study is limited because it did not consider intervening variables that can affect the influence of retail design on purchase decisions. Therefore, future studies can factor in the effect of intervening variables on similar studies. The study concludes that retail design significantly impacts customer purchase decisions and recommends that sustainable retail design be given due consideration in the design of retail malls.