Modern Retailing and its Implications for Developing Countries: Insights from Retail Managers

Abstract

This paper provides insights into modern retailing, its challenges and implications for retail management in developing countries. On average 17 semi-structured interviews were conducted with retail managers in food, furniture and clothing sectors in thirteen locations across the country. Interviews were followed by two focus groups consisting of retail managers and stakeholders from relevant government departments and support institutions. Findings reveal that influx of large foreign retailers in developing countries has made it difficult for both foreign and indigenous retailers to enjoy competitive advantage. Consumer sophistication also makes it challenging for retailers to meet consumer demands. The lack of local sources of supply, unskilled labour, small population, high rental charges, poor infrastructure, inflation and fluctuating currency increase retailers' costs in an attempt to stay competitive. Finally, product quality declines, bureaucracy in decision-making, poor store image and pressure to meet sales targets, were perceived as common challenges by retailers.This study underscores the dilemma that retailers in developing countries face because of modernization. However, for a more comprehensive assessment, future research could extend to other sub-sectors like electronics, hair salons, auto repairs and the informal sector. A retail association working closely with government to explore means for overcoming retail challenges needs to be established. This study makes a unique contribution by assessing perceptions of retail managers from diverse sectors such as food, clothing and furniture, whereas other studies have concentrated on food retail. This study also focuses on implications of modern retailing in a developing country that has recently experienced substantial transformations that attracted large foreign retailers.

Emergent marketing strategies and their influence on the Customer Value Proposition of Fast-Moving Consumer Goods (FMCG) businesses during Covid 19 Pandemic in Botswana

“…From the earliest of stages, the retail sector in Botswana was dominated by small family owned entities with modern retail formats coming into the picture during the 1990s (Selema & Makgosa, 2018). The emergence of these modern retailing businesses resulted in the development of shopping centres (Phambuka-Nsimbi et al, 2015). The modern shopping centres composed of different entities offering diversified assortments to the market resulted in improved amenities in Botswana such as parking space, banks, and food restaurants (Iyanda et al, 2015;Selema & Makgosa, 2018).…”

“…The modern shopping centres composed of different entities offering diversified assortments to the market resulted in improved amenities in Botswana such as parking space, banks, and food restaurants (Iyanda et al, 2015;Selema & Makgosa, 2018). Leading retailers in Botswana include Sefalana, Choppies, Massmart Wholesale (Trident and Eureka Stores) (Chiguvi, 2016;Chiguvi, 2020;Phambuka-Nsimbi et al, 2015;Selema & Makgosa, 2018;Sephetsolo, 2022) as well as Shoprite, Spar Group, Pay-Less Supermarket and the new entrant Fours. It is believed that Botswana is one the economies in which retail investments can result in good returns (Makgetla, 2021).…”

“…Given the dearth of research on the COVID-19 pandemic induced marketing strategies in Botswana, this research aims to explore the manner in which marketing strategies have been changed to adapt to the impactful challenges of the pandemic and economic recession time in the Consumer Goods (FMCG) business landscape of Botswana. To the best knowledge of the researchers much of the studies have been conducted pre-pandemic on the metrics of sound management and customer service (Chiguvi, 2016), challenges of modern retailing (Phambuka-Nsimbi et al, 2015), and the studies done during pandemic time touched on customer satisfaction and related matters (Chiguvi, 2020;Sephetsolo, 2022). This creates an impetus to fill this literature gap and motivate future studies explore marketing contingencies that can be put in place during uncertain economic times and not just the pandemic period.…”

Industrial clusters and promotion of CSR: the case of developing countries

“…This economic progress has contributed to the social progress by the improvement of per capita income within these economies and within the DCs as a whole (Klasen&Waibel, 2015). Indeed, clustering is not only a tool to meet international competition (Sengenberger, 2009;Phambuka-Nsimbi, 2008) but it's also a strategic instrument to eradicate poverty and social exclusion (Chaudhry, 2005).…”