Covid-19 and Financial Performance of Retail Supermarkets in Nairobi City County, Kenya

H.K. Isabwa¹

Section:Research Paper, Product Type: Journal-Paper
Vol.8 , Issue.12 , pp.9-16, Dec-2022

Online published on Dec 31, 2022

Copyright © H.K. Isabwa . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
COVID-19 has had adverse effect on the financial performance of retail supermarkets around the globe. It has contributed to supply chain disruptions in the retail industry which has triggered temporary stock-outs perceived to be traumatic by many retail supermarkets customers around the globe. Because of empty shelves in supermarkets, customers frequently had to visit multiple supermarkets to find desired items. COVID-19 caused major changes in the distribution, sale, purchase, preparation, and consumption of food. The current study therefore sought to determine the effect of COVID-19 on financial performance of retail Supermarkets in Nairobi City County, Kenya. The study adopted a positivism research philosophy and an explanatory research design. The target population was 227 retail supermarkets in Nairobi City County. The sample size was 142 retail supermarkets in Nairobi City County. The study adopted both stratified random and purposive sampling techniques. The study adopted both primary and secondary data. A pilot test was done in 14 retail supermarkets in Kisumu, Nakuru, Mombasa and Eldoret Town. The study adopted content validity and Cronbach’s alpha was used to test reliability. The data collected was analysed using both descriptive and inferential statistics. The study established that COVID-19 has a significant negative effect on financial performance of supermarkets in Nairobi City County of (?=-0.554, p<0.05). The study concluded that COVID-19 has a significant effect on financial performance of retail supermarkets in Nairobi City County. The study recommends that supply chain and labor resource disruptions should be avoided as they affect the financial performance of retail supermarkets in Nairobi City County.

Key-Words / Index Term :
COVID-19, Financial Performance, Retail Supermarkets, Kenya

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