Sustainability in Retail Industry: Competition Factors among Small Retailers and Supermarkets In Agrofood Business

Research Article

Mohd Khairi Ismail, Vikniswar


The development of the retail sector in Malaysia which is associated with an increase in the influx of supermarkets and affects the competitiveness of small retailers nowadays. The price, comfort, quality and safety of products, and the relationship between retailers and customer is beginning to be an issue that is often dealt with when discussing the issue of competition among retailers. Therefore, this study aims to discuss the impact of the involvement of supermarkets in the agro-food supply to small retailers in terms of competitive pricing, convenience, and product quality and customer relations. A total of 163 small retailers around Bangi area had been chosen as respondents for this study. This research used Exploratory Factor Analysis (EFA) technique through analysing the factor to answer the research objectives. In addition, this study would examine, through discussions of previous studies, whether all four competitive factors obtained, namely price, comfort, quality assurance and product safety, and relationships with retailers are the competition factors to the retailer. The study found that there are four factors that influence the competitive small retailers and these factors significantly affect the competition faced by small retailers. The discussion also showed that the quality and safety of products is not a major competitive factor for small retailers. In order to overcome this phenomenon, the implementation of policies and programmes to help retailers should take place. The Business Retail Shop Transformation Programme (TUKAR), implemented in 2011, is seen as a necessary action utilized by retailers through support in the involvement.

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