ULAB 2112 ADVANCED ENGLISH SESSION: 2012/2013 (2)
RESEARCH REPORT ON DECLINE OF GROCERY SHOP BUSINESS IN TAMAN UNIVERSITI, SKUDAI GROUP MEMBERS: CHIA GIN JIAH CHU SHU ERN LEE JUN XUAN
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1.0 Introduction 1.1 Background Study A sundry shop, convenience store, corner store or corner shop is a small store that stocks a range of everyday items such as groceries, toiletr ies, alcoholic and soft drinks, tobacco products and newspapers. Such shops may also offer money order and wire transfer services. They differ from general stores and village shops in that they are not in a rural location. Convenience stores usually charge higher than ordinary supermarkets, which t hey make up for with convenience by serving more locations and having shorter cashier lines. (Source: Wikipedia.org) According to the National Statistics Department. There are 50 000 sundry shops in Malaysia. Sundry shops are generally grouped under the small business sector. According to the small and Medium Business Enterprise Cor poration Malaysia (SME Corp. 2011), a small business is defined as an entity which:
Employs fewer than 20 full-time workers and earns an annual revenue of less than RM1 million (if it is a service provider), or
Employs fewer than 50 full-time workers and ear ns less than RM10 million (if it is manufacturing)
Hence, the small business category also includes micro-businesses which are firms employing fewer than 5 full-time workers and earning less than RM200 000 per annum (service providers), and RM250 000 (manufacturers). Small businesses in Malaysia are usually either partnerships or familyrun. In recent years, the issues concerning small businesses has escalated, especially the trading without license and red tape in the lic ense application process.
1.2 Statement of the Problem Many grocery shops today are experiencing a dramatic decline in their businesses. However, there are a number of grocery shops that are still managing to survive ad even e xpand their businesses into minimarts. Some are even going as far as to explore other business ventures. The general theory is that bigger retailers are the main cause of the decline in small grocery shop’s businesses. Given the situation, the Grocery Shops Association of Malaysia should take ser ious efforts in studying the cause of the decline in grocery shop business and the best recommendations to improve the situation through research and public feedback.
1.3 Purpose of Study Given the rising number of hypermarkets and supermarkets, t he increasing competition is making an impact on smaller businesses like grocery shops. Many of these small shops eventually close down due to business losses and as a re sult, many small business owners en up unemployed.
In response to this concerning fact, this issue has to be investigated further. The purpose of t he study in this research is to analyse the current situation being faced by these small businesses and finally, to give recommendations to help to improve their plight. 1.4 Objectives of the study The objectives of the study are: i.
To study the current trends in customer’s decision making, attitudes and behaviours in relation
to grocery shopping. ii.
To investigate the causes of decline in groce ry shop businesses.
iii.
To explore and provide proper recommendations to business owners in order to help increase sales.
1.5 Research Questions QUESTIONNAIRE WE ARE A GROUP OF STUDENTS FROM UTM TAKING THE SUBJECT ULAB 2112 ADVANCED ENGLISH. OUR STUDY IS TO INVESTIGATE THE CAUSE FOR THE DECLINE OF GROCERY SHOP BUSINESSES IN TAMAN UNIVERSITI. _________________________________________________________________________________________ A. DEMOGRAPHIC INFORMATION 1. I AM □ MALE
□ FEMALE
2. I AM ______ YEARS OLD
3. CURRENTLY I AM A ? □STUDENT □HOUSEWIFE □SELF EMPLOYED □GOVERNMENT SERVANT □PRIVATE SECTOR SERVANT □UNEMPLOYED
4. MY INCOME IS ___ PER MONTH 请您告诉我们您的家庭收入 □BELOW RM 2,000
□RM2,000-RM4,999
B. SHOPPING PREFERENCE 5. I DO MY GROCERY SHOPPING…. □DAILY
□WEEKLY
6. I USUALLY SHOP AT… □ WET MARKET/PASAR PAGI
□MONTHLY
□RM5,000-RM9,999
□RM10,000 AND ABOVE
□ GROCERY SHOPS IN TAMAN
UNIVERSITI
□GROCERY SHOPS OUT OF TAMAN UNIVERSITI □GIANT/JUSCO/HYPERMARKETS
7. I USUALLY DO MY SHOPPING DURING… □ 7 AM. – 10 AM.
□5PM. – 8PM.
□ 11AM. – 1 PM.
□9PM. – 12AM.
□2PM. – 4PM.
8. PLEASE TELL US ABOUT WHAT DO YOU LIKE ABOUT GROCERY SHOPS (YOU MAY TICK MORE THAN 1) □ RARE/TRADITIONAL ITEMS
□SERVICE PROVIDED IS MORE PERSONAL
□CERTAIN ITEMS ARE
□QUALITY OF GOODS
CHEAPER THAN COMPETITORS
□COZY ENVIRONMENT
□LOCATION
□CREDIT PAYMENT
□OTHERS, PLEASE STATE____________________
9. PLEASE TELL US ABOUT WHAT DO YOU DISLIKE ABOUT GROCERY SHOPS □HYGIENE
□CRAMPED ENVIRONMENT
□LESS
□SERVICE
CHOICES
□PAYMENT METHOD
□PRICE OF GOODS
□FACILITIES (PARKING, WIFI, TOILET ETC) □OTHERS, PLEASE STATE
______________________________________________________________________________________ 10. PLEASE TELL US YOUR OPINION ON HOW TO INCREASE SALES IN GROCERY SHOPS (YOU MAY TICK MORE THAN ONE) □
IN-STORE COUPONS
□ITEMS THAT APPEAL TO CHILDREN PLACED ON BOTTOM 2
ROWS
□CHANGE ITEM LOCATION □PLACE IMPULSE ITEMS (EG:GUM/CANDY) AT CHECKOUT COUNTER □OFFER FREE SAMPLES □SMILE WHEN CUSTOMERS ENTER □PROVIDE DISCOUNT/LOYALTY CARD FOR □FIX PRICES OF FAST MOVING ITEMS A
CUSTOMERS
BIT LOWER THAN SUPERMARKET
□TAKE ORDERS VIA SMS, PHONECALL, EMAIL AND
PROVIDE DELIVERY TO DOORSTEP
□DISTRIBUTE FLYERS REGULARLY □OTHERS, (PLEASE STATE)_________________________________________________________________
11. IF A GROCERY SHOP HAS IMPROVED ON YOUR AREAS YOU HAVE PICKED IN QUESTION NO 8, WOULD YOU SHOP AT GROCERY SHOPS INSTEAD OF OTHER COMPETITORS? WHY?
如果您选择的领域有所改善，您会选择购物于杂货店吗？ □
YES
是
□
NO
否
________________________________________________________________________________________ 12. DO YOU THINK GROCERY SHOPS ARE STILL IMPORTANT AND RELEVANT? PLEASE STATE YOUR REASON.
您觉得杂货店是否还适合存在着？请注明其原因 □YES
□NO
REASON: _________________________________________________________________________________________
1.6 Significance of the study There is no specific study that investigates the decline in grocery shop business in Taman University, Skudai. The studies conducted by the Malaysian Government do not highlight the specific are as of study in the suburban community. Hence, the findings of this study is important to help the small business owners in Taman University to find out the causes of their business decline and prepare recommendations and also to investigate the public’s choices and opinions towards grocery shops. With this information at hand, this study could possibly become a guide to stee r the small business owner’s targets and strategies in a better direction and ultimately, improving their businesses.
1.7 Scope of the study This study will be conducted in 3 forms to investigate the causes of the decline in a more subjective way. The first method is to interview small business owners, MPJBT, c ustomers and the public, especially youths, housewives and the elderly at Taman Universiti. The second will be to hand out questionnaires to a number of grocery shops at Taman Universiti. Another 50 questionnaires will be distributed to the public.
2.0 Literature Review 2.1 Definition of grocery shop A sundry shop, convenience store, corner store or corner shop is a small store that stocks a range of everyday items such as groceries, toiletries,alcoholic and soft drijnks, tobacco products and newspapers. Such shop may also offer money order and wire transfer services. They differ from general stores and village shops in that they are not in a rural location. Convenience stores usually charge higher than ordinary supermarket, which they m ake up for with convenience by serving more locations and having shorter cashie r lines.(source: Wikipedia.org). According to the National Statistics Department, there are 50,000 sundry shops in Malaysia. Sundry shops are generally grouped under the small business sector. According to the Small and Medium Business Enterprise Corporation Malaysia (SMECorp.2011), a small business is defined as an entity which:
Employs fewer than 20 full-time workers and earns an annual revenue of less than RM 1 million ( if it is a service provider), or
Employs fewer than 50 full-time workers and earns less than RM 10 million ( if it is manufacturing).
Hence, the small business category also include micro-business which are firms employing fewer than 5 full-time workers ad earning less than RM 200,000 per annum (service provider) and RM 250,000 (manufactures). Small businesses in Malaysia are usually either partnerships or family-run. In recent years, the issues concerning small business has escalated, e specially trading without license and redtape in the license application process. Grocery/ sundry shops are usually a convenience place for people to get their stuff when they need it in an emergency.
2.2 History of a grocery/sundry shops Piggly Wiggly is the frist self-serving shop which was opened in Memphis, Tennessee by Clarence Saunders, who was an inventor and entrepre neur. Saunders did this to generate revenue, because now as customers wandered around aimlessly searching for the items that they intended to buy they wer e more likely to pick out several mor e during their search. The Piggly Wiggly phenomenon grew rapidly; at the end of the 1930s, there were over 2,600 stores nationwide. Other independent and chain grocery store s changed to self-service through the 1930s.Grocery stores also began to offer products beyond the normal scope of the dry -good grocery store. They added meat, dairy, fruit and vegetables, and breads.
The phenomenon and the variety of products sold began in the evolvement of mini market and then to supermarket as what we see nowadays. The supermarkets are then continuously evolved to a larger store which is known as hypermarket for example, Tesco, Aeon, Giant, Mydin and
2.3 Classification of grocery/sundry shops Grocery/sundry shops are classified as a small business. They could not be categorized in a specific good sold shop as the word “sundry” carried the meaning of variety a nd miscellaneous. The
shops are available for purchase sundry types products, clothing, souvenirs, books and many others. The sundry type’s products include medicines, toiletries, general household supplies, candy and gum, snack
items, soft drinks, bottled water, juices, ice cream, cameras, batteries, suntan lotions and more. Some even sell magazines, paperback books and newspapers. With the variety types of goods sold in the sold, the proper arr angement and displays of goods sector should be applied. Some sundry shops who sell fresh food such as vegetable, fish, potatoes, and etc. should always make sure the food fresh and clean every day.
2.4 Research in grocery/sundry shops TUKAR, or Small Retailer Transformation Programme, is part of an entry point project (EPP) under the Economic Transformation Programme (ETP) introduced by Prime Minister Najib Tun Razak. The intention of the design of this project is to modernise and enhance the competitiveness of traditional retail stores, or what is commonly known as kedai runcit (sundry shops).
Traditional sundry shops have been asked to change the way they conduct business under the transformation of the grocery stores programme (Tukar) to win the hearts of young consumers. Ministry of Domestic Trade, Cooperatives and Consumerism Deputy Minister Datuk Tan Lian Hoe said younger consumers nowadays were reluctant to do g rocery shopping at sundry shops. Hence, with the help of TUKAR in changing the image of Malaysia sundry shops, many sundry and grocery shops have benefited in:
Competitiveness and efficient management improvement
Case Study: U & I Easymart owner Murali Krishna The adoption of modern technology and efficient management helps Murali increase his competitiveness. His shop looked dull, without sufficient lighting, and his suppliers refused to supply goods because they were not paid promptly. With the help of the program persuaded by his friends, Murali noted that his shop was totally revamped and transformed from a dimly-lit sundry store to an attractive and brightly-lit retail outlet.
Increase in revenue
Case study: Jessica Wong, a 42-year-old single mother who manages a sundry shop in Bandar Bukit Puchong. In April 2011, she decided to join the pioneer programme and within weeks, saw her weekly revenue increase from RM20,000 to RM29,000. The shop was transformed from a dimly-lit sundry store to an attractive and brightly-lit retail outlet. Besides that, she also received advice on improving efficiency of the shop by changing its layout and operating systems, preparing plan programs and revamping the management of stocks in the store.
Ideas in transform store
Case study: Pappathy Provision Store Pappathy has operated her sundry shop for more than 30 years, however she was still unsure how to draw more customers to her dull store, which lacked lighting and displayed products that were outdated. TUKAR team who visited her grocery store and made sure the store was completely renovated, and offered her some ideas on proper management.
In conclusion, with the help of the TUKAR program, most of the sundry shops in Malaysia are hopefully successfully in changing their image and increase the competitive. The coming objective of the TUKAR program is to see 5,000 outlets transformed and modernized throughout the country by 2020.
3.0 RESEARCH METHODOLOGY 3.1 INTRODUCTION This section discusses the methodology of the research. The main purpose of the research is to investigate the reasons for decline of grocery shop business in Taman Universiti, Skudai and suggest recommendations to improve these businesses. To assess and evaluate the weaknesses and strength of grocery shops among the locals, 50 random locals around Taman Universiti were chosen to represent the opinion of the general population in Taman Universiti. Data for the research were collected through questionnaire, interview and observation.
3.2 RESPONDENTS OF THE STUDY The respondents of the study were randomly chosen locals in Taman Universiti. In April 2013, a total of 50 questionnaires were distributed to locals at different shops, restaurants and grocery shops in Taman Universiti. All of the 50 questionnaires were returned to the researchers. Of these numbers, ___ were male whereas the rest (___) were female. Six locals and grocery shop owners were selected to provide in-depths information about the topic through interview section.
3.3 RESEARCH INSTRUMENTS USED This research utilized both the qualitative and quantitative research methodology. The instruments used to collect the data were questionnaire, interview and observation. A set of questionnaire containing 20 questions divided into 3 sections was developed based on a questionnaire used previously by another study ( State Government of Jersey). Different question-types, such as ranking, yes-no, and scales were used in the questionnaire. the different sections of the questionnaire were: i) demographic information, ii) shopping preference, iii) and recommendations. The questionnaire was piloted to a group of 10 locals to assess its validity before it was distributed. The qualitative data for the research came from observation and interview. Observation was used to obtain the types of customers frequenting the grocery shops and the purpose for their visit. An observation sheet (Appendix ) was developed. Another method used was interview to confirm the findings from the questionnaire and to triangulate the data collection methods. Six respondents were involved in the interview. Ten questions were prepared after general consultation with several business owners in the topic area (Appendix ). The interviews further explored the c urrent situation of the business and the future prospects of g rocery shop in Taman Universiti.
3.3 RESEARCH PROCEDURE Before the actual data collection period, a pilot study was conducted to assess the validity of the research instrument. A total of 10 members of the public were involved in the pilot study chosen at random at various areas in Taman Universiti.
During the actual study, the questionnaires were distributed at various locations in Tman Universiti, such as hawker centers, shops, grocery shops and restaurants. Respondents were approached with the initial question of whether they frequent a groce ry shop nearby, before the purpose of the questionnaire was explained in detail to them. The respondents were given the choice to participate in the study before the questionnaire was given to them. Six locals were selected from those who completed and returned the questionnaire to stay on for a brief interview with the researchers. The interview were kept brief considering the time constraint of the respondents involved. The interview was to find out the public opinion on the groce ry shop business and its future prospects in Taman Universiti.
3.4 DATA ANALYSIS To analyse the data, a total of 3 variables were taken into consideration namely personal preference, areas for improvement and public's perception on the importance o f grocery shops. Data were entered into the computer using Excel software. Results we re presented through frequency counts and other descriptive statistics. Interview data provided a way to validate and present in-depth view into the research topic. The analysis of the interview data went through the coding technique using identification of categories of patterns and prefere nce that emerged from the analysis. The field-notes from the observation were transcribed, and data from t he observation sheet were analysed and tabulated in tables.
