Attitudes of selected stakeholders towards growth strategies pursued by large scale retailers in Kenya: The case of Uchumi Supermarkets limited

Abstract

The objectives of this study were to assess customer and staff awareness and knowledge of growth marketing strategies pursued by Uchumi Supermarkets Ltd. (Uchumi); assess attitudes of customers and staff towards those strategies; and measure Uchumi's image as perceived by customers. To satisfy these objectives, the current author first carried out a review of the literature so as to establish the current status of the subject area. The researcher then conducted a descriptive research. The relevant data were collected from samples drawn from customers and staff of Uchumi using both structured and unstructured questionnaires. The data were subsequently analyzed using the research objectives as a guide. The analysis revealed many useful insights into the whole question of growth strategies in general and in retailing in particular. First, the study revealed that growth strategies have led to a lot of expansion and opening of new branches by Uchumi. However the staff and customers awareness and knowledge levels of these strategies are relatively low. This is shown by fact that very few of them could mention over five branches ofUchumi. In addition the respondents were not very conversant with the growth strategies being used by Uchumi. Second, the attitudes of staff and customers towards Uchumi are highly positive. This means Uchumi is still regarded as a leading quality store by its various internal and external customers. These stakeholders, however, felt that the opening of branches in some areas was uneconomical since they are too close to each other. A few branches were also located in what the respondents considered to be insecure and inconvenient places. Third, the parking space of Uchumi was seen to be a major issue. This was expressed by both the respondent customers and staff. The staff complained of having to carry the luggage of customers very far while the customers complained that Uchumi does not have enough parking space for its customers in most branches. Since majority of Uchumi's customers have vehicles, this factor needs to be addressed by the management. Fourth, the Uchumi's corporate image as perceived by customers and staff is very positive and should be enhanced. The implications of the study's findings are that Uchumi should be more involved in carrying out a survey to determine customer potential and to ascertain security, convenience and availability of parking space before opening a new store; should enhance it's image through pursuing properly crafted marketing strategies; and because of the intensifying competition, it should increase its lower middle class customer base by employing, designing and implementing relevant cost reduction strategies. There is need for a more comprehensive study to be carried out on the same topic but on a national level and using other stakeholders.