MAJCAFE

Carol Boon-Chui Teo
Arshad Ayub Graduate Business School, Universiti Teknologi MARA

Nor Amalina Binti Mohd Kamal, Nursyafiqah Binti Mohd Rafee, Khadijah Maulad Bahrol

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Abstract

The Malaysian retailing environment has undergone changes in the retail format notably in grocery retailing. Grocery retail formats from large-scale multinational and local retail stores dominate the Malaysian retail scene. Premium grocers have gained popularity in the urban areas to cater to upscale clientele such as BIG, Jaya Grocer, Jasons Food Hall, Village Grocer and SAM Groceria. Shoppers are faced with a myriad choice of grocery retail format. More changes to grocery stores are expected as the industry adapts to new competitive pressures and millennial shopping habits. Faced with technology and e-commerce, physical stores have to continue to focus on improving store attributes to increase store patronage and fight for shopper traffic. This paper examines the influence of risk reducers, choice enhancers and shopping experience enhancers on store patronage of grocers. There is a vast scope for study into grocery as the environment changes rapidly, leading to changed shopper expectations and realignment of choice set of stores. The methodology utilized a survey questionnaire approach on 200 shoppers together with store observation and personal interview with a grocery chain. Findings found risk reducer in terms of location proximity and quality of merchandise and shopping experience enhancers under store ambience and employee assistance as strong predictors of store patronage. However, choice enhancers were not significant. Findings had implications for retail management and strategies for premium grocers in the evolving and changing grocery retailing landscape.

Keywords: Risk reducer, Choice enhancer, Shopping experience enhancer, Store patronage, Grocery retailing