THE ROLE OF LOCATION ON THE SUCCESS OF A SUPERMARKET (A

CASE STUDY OF SELECTED SHOPS IN WARRI, DELTA STATE)

BY

ONOTOLE FAVOUR
DSPT/BAM/1819/30413

A PROJECT SUMITTED TO THE DEPARTMENT OF BUSINESS

ADMINISTRATION AND MANAGEMENT, SCHOOL OF BUSINESS
STUDIES, DELTA STATE POLYTECHNIC
OTEFE – OGHARA

FEBRUARY, 2021

1
 TITLE PAGE

THE ROLE OF LOCATION ON THE SUCCESS OF A SUPERMARKET (A

CASE STUDY OF SELECTED SHOPS IN WARRI, DELTA STATE)

BY

ONOTOLE FAVOUR
DSPT/BAM/1819/30413

A PROJECT SUMITTED TO THE DEPARTMENT OF BUSINESS

ADMINISTRATION AND MANAGEMENT, SCHOOL OF BUSINESS
STUDIES, DELTA STATE POLYTECHNIC
OTEFE – OGHARA

IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE

AWARD OF NATIONAL DIPLOMA (ND)
IN BUSINESS ADMINISTRATION

FEBRUARY, 2021

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 CERTIFICATION
This is to certify that this project work was carried out by ONOTOLE FAVOUR
With the Matriculation number DSPT/BAM/1819/30413 of the Department of
Business Administration and Management, School of Business Studies, Delta State
Polytechnic, Otefe – Oghara.

_______________________ _______________
MR. IMENE MARVIS DATE
(PROJECT SUPERVISOR)

__________________________ _______________
MR. MAGINI GIDEON DATE
(HEAD OF DEPARTMENT)

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 DEDICATION
To God be the glory for his love and effort which enable me to success fully
complete my ND program, may His name be glorified.

4
 ACKNOWLEDGEMENT
I wish to thank God almighty for the spiritual guidance and mercy He gave
me throughout my academic pursuit.

My profound gratitude goes to my supervisor Mr. Imene for his guidance,

advice, correction and understanding throughout my project work.

I am highly indebted to my family who made my dream of becoming a

graduate a reality, my Father and Mother, Mr. and Mrs. Solomon Onotole and my
brother and sisters and also my beloved Uncle Mr. Fred Osagie and my in-law Mr.
Sabastine Ageh and my Friends and Course mates too.

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 ABSTRACT

The research work focus on the role of location on the performance of a supermarket with
reference to some selected supermarkets in Warri, Delta State. The main objective of this study
is to determine the effects of supermarket location on customer patronage. Questionnaire was
used to gather data and information from the Respondents. The estimated population of this
study is 80 and the sample size is 67. The chi-square tool was use to test the hypothesis
formulated. The result shows that there is a significant relationship between location and
performance of a supermarket. Finally conclusions were made and it was recommended that
owners of supermarkets should get a good location for their supermarket. And also owners of
supermarket should always keep record of the total number of persons that comes to the shop
daily.

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 TABLE OF CONTENTS
Preliminary Page
Title page - - - - - - - - - -
Certification - - - - - - - - -
Dedication - - - - - - - - - -
Acknowledgement - - - - - - - -
Abstract - - - - - - - - - -
Table of content - - - - - - - - -
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study - - - - - -
1.2 Statement of the Problem - - - - - -
1.3 Objective of the Study - - - - - - -
1.4 Research Question - - - - - - -
1.5 Hypothesis Statement - - - - - -
1.6 Significance of the Study - - - - - -
1.7 Scope and limitation of the study - - - - -
1.8 Definition of terms - - - - - - -

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 The development of a supermarket - - - -
2.2 Factors for the success of a supermarket - - - -
2.3 The role of location on supermarket - - - - -
2.4 The problems of supermarkets - - - - -
2.5 Current trends in supermarkets - - - - -
2.6 Importance location factors
2.7 Challenges of supermarket - - - - - -

CHAPTER THREE: METHODOLOGY

3.1 Research Design - - - - - - - -
3.2 Population of the study - - - - - - -
3.3 Sample size and sampling techniques - - - -
3.4 Research Instrument - - - - - - -
3.5 Validity of research Instrument - - - - -
3.6 Reliability of research Instrument - - - - -
3.7 Method of data collection - - - - - -
3.8 Method of Data Analysis - - - - - -

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1 Data Presentation - - - - - - -
4.2 Test of Hypothesis - - - - - - -
4.3 Research result and discussions - - - - -

CHAPTER FIVE: SUMMARY OF FINDING, CONCLUSION AND RECOMMENDATIONS

5.1 Summary of Findings - - - - - - -
5.2 Conclusions - - - - - - - -
5.3 Recommendations - - - - - - -
Reference - - - - - - - - -
Appendix - - - - - - - - -

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 CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

In this environment, supermarket’s location could be the most important determinant of

the supermarket’s success or failure. A well-known aphorism states, “the most important
attributes of stores are location. The choice of a supermarket store location has a major
and deep impact on its business success and vitality. A bad choice in most times could
mean failure, whereas a good choice may lead the business towards all time success.

As for any other business firms the profit ability of a retail store is a consequence of the
interplay of a retail store is a consequence of the interplay between environmental factors.

According to Allietal (2001): location selection is one of the business decisions that have
to be made carefully. Past research have shown that business location have had
relationship with business success.

Supermarket managers are constantly faced with the challenge of making decision and
taking actions in order to satisfy consumers needs and wants and respond to the actions of
competitions supermarket management is need a life at highly complex operation
comprising task that are long term as well as short term by characters.

On the supermarket level these task involved strategically (e.g Selected location for a
supermarket) tactically (issues on price merchandise and service attributes) as well as
operational issue (e.g. scheduling, staff members, organization daily routines monitoring
and evaluation current performance)

According to Brchny (2009)- He portals the issues faced by supermarket in a frame work
of sequential steps starting with the arch for location, followed by the considering of
factors on a successively more derailed level. In a world of an utmost infinite numbers of
environmental and internal factors making a difference for supermarket performance the
performance, there is a call for retail managers to which they operate in a context of
supermarket performance the better knowledge managers passes about the interplay.
Between environment and international antecedents of various aspects of supermarket
8
performance and about the interplay between these antecedents, the better and more
efficient the collection and assessment of relevant information and the more effective the
transformation of it’s into more effective and efficient conduct and by extension the
better the performance.

The performance of supermarket and their managers of further of general interest, to

society. As food is essential to life issues relating to the conduct and performance of
supermarket industry; are more or less of every ones concern.

Supermarket is indeed an important sector of the overall economy of western societies.

The volume of the sector makes its performance vital for the performance of the sector is
an aggregate of the functioning of su0permarket in numbers level market (foreign market,
laboring different condition of demand and supermarket. Knowledge about the
antecedents of performance difference of the supermarket level are crucial for the
understanding of the sector as a whole

1.2 STATEMENT OF THE PROBLEM

In recent time the location of supermarket is a source of constrain to the managers

and the operators, it is often believed that the location must be favourable for the
supermarket to be successful.

Specifically where a supermarket is having a poor location it will tend to manifest

the following factors, namely.

i. Few people come into the supermarket

ii. Fewer people buy from the supermarket
iii. Sales are low
iv. profit are low

1.3 OBJECTIVE OF THE STUDY

The objective of these study is to examine the role of location on the success of a
supermarket using selected shop in Warri as a case study. Specifically

9
i. To determine the role of location on the success of a supermarket
ii. To determine the role of location on customer patronage in a supermarket
iii. To determine the role of location on the profitability of a supermarket.

1.4 RESEACH QUESTION

The following research question will be considered in this research work.

I. To what extent does location affect the success of a supermarket?

II. To what extent does location has effect on customer patronage in a supermarket?
III. To what extent does location has effect on the profitability of a supermarket?

1.5 HYPOTHENSIS STATEMENT

The following hypothesis shall be tested in this research work.

Ho: There is no significant relationship between location and the success of a

supermarket?

Hi: there is a significant relationship between location and the success of a supermarket?

Ho: There is no significant relationship between location and customer’s patronage in

supermarket

Hi: there is a significant relationship between location and customer’s patronage in a

supermarket

1.6 SIGNIFICANCE OF THE STUDY

This study shall be beneficial to the following categories of persons

i. Owners of supermarket
ii. Managers of supermarket
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 iii. Students

i. Owners of supermarket:- it enable the owners of supermarket to get good

location while establishing a supermarket
ii. Managers of supermarket:- it enable the managers of supermarket to locate the
problem facing in the supermarket
iii. Student:- students will find these work as a good reference materials

1.7 SCOPE AND LIMITATION OF THE STUDY

The scope of this study is the Role of location on the success of a supermarket in
some selected shops in Warri Delta State. The limitations of this study are the
problems encounter in the cause of carrying out the study.

i. Time: there is no enough time for the researcher to carry out the research work
due to the area of visitation.
ii. Finance: During the cause of this work the researcher encountered financial
constraints for research and development.

1.8 DEFINITION OF TERMS

For the purpose of these study the following variables will be define operationally
as bellow;

i. LOCATION; A location can be seen as the physical area of one of your

organization store warehouse or supermarket where you have staff. It can also be
seen as a particular place or position.
ii. SUPERMARKET: It can be seen as a large store that sells a variety of goods
and household items to customers.
It can also be define as a large form of traditional grocery store, is a self
service shop offering a wide variety of food and house hold products,
organized into aisles.
iii. TURNOVER: The annual sales volume net of all discounts and sales taxes.

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 It can also be seen as the number of times an asset (such as cash, inventory,
and raw materials) replaced or revolves during an accounting or periods
iv. EXTERNAL ENVIRONMENT: It refers to the major factors and forces
outside the organization that have the potential to significantly affect the
performance of the supermarket.

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 CHAPTER TWO

REVIEW OF RELATED LITERATURES

2.1 THE DEVELOPMENT OF A SUPERMARKET

Nigeria attracted over N205.4 billion worth of fresh investment into her retail
sector in the last two years, the minister of industry, trade and investment. Today
in a city; of any significant size, a grocery shopper can be served by a high quality
supermarket, a price – emphasis supermarket, a true discount store, a Mon and
pop store a quick shop operation, or a large integrated shopping center” David
Appel, There have been four major eras in the evolution of the supermarket
industry the first was chain store revolution which was led by A and P. The next
major innovation was the introduction of the supermarket format, a disruptive
innovation that brought scale and scope economics to stores themselves.

According to kumar and Suresh (2009) while assessing the potential within an
industry an overall organizational strategy must be develop including some basic
choices of the primary basis for competing. As such they argued that marketing
performance priorities are established among the following four characteristics of
quality (product performance), cost efficiency (low cost price), dependability
(reliability order to customers), and flexibility.

In a sense, each innovation has been about the same thing getting products to
consumers as cheaply and efficiently as possible. Sometimes the innovations were
driven by external demographic ships, other times by the firms themselves what
seems clear is that this was, and will continuous to be a highly competitive
industry in which a small number of firms but no single firm compete to provide
the widest array of products at the lowest possible prices.

According to Nwulu chinyere stella (2015): pointed that The development of

supermarket in the South-East region of Nigeria has gained 3395 number of
registered supermarket.

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 Among the most notable changes Cullen proposed were increased store size (five
to ten times lager), low cost warehouse district locations, the shift to self-service,
and the emphasis on advertised supermarket also benefited from the growth in
nationally advertised brands that the incumbent chains, which were heavily
invested in their own brands, often refused to carry. The shift in consumer tastes
toward branded products shapely reduced the cost advantages to retailers
verticullar integrating into manufacturing.

2.2 FACTORS FOR THE SUCCESS OF A SUPERMARKET

the competition in supermarket/retailing business is dramatically increasing. The critical

success factors are crucial to the future development of grocery retailers. Large amount
of researches have been done on individual success factors.

Supermarket business has been one of the most growth industries since last decade the
competition is fierce and lots of changes have been taking place in the last few years. (Mc
neill, 2012)although retailers are becoming more brave and efficient to face the
competition, challenges still exist.

The following factors are to be considered for the success of a supermarket

I. No matter the kind of business you want to start as long as it is called business
you would need a business plan to efficiently stand and manage the business to
ensure that you take out time to sit back and draft a good business maps.
II. REGISTER YOUR BUSINESS
The onset ,it is better that you get it right with your business and getting it right
means you should register your business and get every required permission and
license before opening your supermarket to the public

Iii FEASIBILITY STUDIES

If you want to start a supermarket that would enjoy continuous, high patronage when
you should carry out your feasibility studies to enable you to know the ideal place to

14
 situation your supermarket, the goods that are high demand in community and wads of
others factors that will help you plan and achieve your business goals.

Iv SUITABLE FACILITIES

The location you choose to situate your supermarket determine how fast and successful
your business may grow. The truth is that if you get a facility that has a fewer package
lot, it might affect the number of persons that visit your supermarket per time.

v. SOURCE FOR COMMODITIES SUPPLIERS

You would need to source for manufacturing and whole sale distribution of commodities.
The good thing about supermarket business is that if you stock your shelve with varieties
you would provide enough options for your customers.

Vi CREATE AWARENESS ABOUT YOUR SUPERMARKET

If you have put all things in place for your supermarket business then the next thing to do
is to officially open your business to the public.

2.3 THE ROLE OF LOCATION ON SUPERMARKET

According to Kotler(2003): He said supermarket must be carefully located near the

greatest number of potential customers because of the importance of shopper
convenience in store patronage.

According to Rand (1998): He discussed in details the characteristics of layout of the

supermarket from the customers point of view. The location of a supermarket demands
on its customers.

The following are the basics requirement in planning the location of a supermarket.

i. The location must be easy to reach by a sufficient number of customers who Will buy
the merchandise that is for save.
ii. The location must be economic in terms of cost, compared with sales volume.

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2.4. THE PROBLEMS OF SUPERMARKETS

The following are the problems of supermarket in Warri Delta State using selected
supermarket as a case study.

I. Electricity: due to lack of constant power supply the researchers was unable to do their
reading at night

ii. Potential competitors: the quality of competition found in an area is also concern for the
same business manager.

iii. Time: there is no enough time for the researcher to carry out the research work due to the
area of visitation.
iv. Finance: During the cause of carrying this research encountered financial constraint.
v. Language Barrier: These are a situation where the manager or owner of the supermarket
employs an individual who understand the language of the area the business is been
located. For effective communication with customers.
vi. Community attitude towards the business: the entrepreneur must evaluate critically the
continuity in which the business is to be located to know their reactions towards business
enterprise sited in the community. It is an open secret that community especially youth
gave section to existing business before they were established.

2.5 CURRENT TRENDS IN SUPERMARKETS

Grocery retail has gone through the major changes (innovations) in the past century the
rise of change grocery store over independently owned stores, the rise of supermarkets
that offered and increased number and variety of product and the rise of supermarket that
continue the trend to even larger stores offer more and more product (Elickson 2005;
Tedlow). In each of these cases suppliers fund waste to decrease the cost of production in
other to bring lower prices to consumers.

Competition spurred by this latest trend to supercenters has contributed to other

developments among more traditional supermarket. Some retailers target middle and
higher income consumers often offering special products or primarily organic offering
special products (e.g. whole foods) (Drake 2009).

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 Given these competition force why is it that some areas lack access to a supermarket or
large grocery store? The range of reasons offered include some that are identified in this
chapter and other that have been summarized elsewhere. Many apply specifically to
urban areas, but some apply to rural areas as well .

Example include the following!

i. Zoning and relatory approval processes

ii. The need to secure land sites large enough for stores
iii. Higher construction and operating (eg rent real estate, taxes, security, costs) costs
in urban areas
iv. Local polities, where officials and groups may have competing goals for
development.

2.6 Important Location Factors

It is necessary to consider more variables in the selection of supermarket sites than is usually the
case in picking an optimal location for supermarkets. The weighting of the various location
factors will vary between products, product mixes and marketing programs. Some of the
more important location factors associated with supermarket and are listed and compared.

1. Site Accessibility
A supermarket should be “fairly” accessible to its customers, The need for accessibility is
not as exacting because supermarkets have large advertising budgets and this expenditure, to
some extent, substitutes for a more nearly optimum location.

2. Size of Market
The majority–about two-thirds–of the customers of urban grocery stores usually reside within
a one-mile radius of the store, and the vast bulk of the customers–95 percent or more–are
contained within a one and one-half mile radius of the store. These rules hold for most situations,

3. Competition
The prime competition consideration in supermarket location is the number and size of
supermarkets operating within a two-mile radius of the proposed store site, The larger and nearer

17
the competitors, the greater the business hazard and the lower the expected sales. However, if
two large supermarkets are located adjacent to each other, the market area will be enlarged,
Also, a strongly favorable image of a competitive store reduces the sales that can be realized at a
location.

4. Customer income
Customer income is an important consideration, but usually not of the same significant as
population density and competition. The demand for food is relatively inelastic. The percent of
increase in food purchases does not rise as rapidly as the percent of increase in income.

5. Population Characteristics
It may be necessary to adjust the market mix to the tastes of particular markets. This does not
present a large problem to supermarkets, Modern stores stock several hundreds of thousands of
items and can easily add specialty items and offer the market mix demanded by particular ethnic
groups. This factor does not significantly affect supermarket location.

6. Economic Climate
New stores should be located in communities that are experiencing economic growth or, at
least, are stable. Declining communities are not preferred locations. Supermarket. The general
economic condition of the country affects fast food sales more than grocery sales inasmuch as
the demand for groceries is less elastic than the demand for fast food store prepared foods and
services, i.e., as incomes increase or decrease the percent of change in fast food sales is greater
than the percent of change in grocery sales, Consequently, fast food stores should be especially
cautious about locating in declining economic areas.

2.7 CHALLENGES OF SUPERMARKET

i. Lack of access to accurate, timely financial information. Running a grocery store can be
challenging with a constant need to access more relevant financial and operational
information about the business

II. Lack of labour cost

III Low profit margins
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 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 RESEARCH DESIGN

In this research work survey method could be adopted questionnaire and personal interview will
be used to elucidate an information.

In stratified sampling technique may be adopted. The Chi-Square stratification to test formulated
hypothesis

3.2 POPULATION OF THE STUDY

A population is the totality of all the variables under study. The population of these study include
“five hundred supermarket owners in delta state.

Because these numbers is too large to be effectively and efficiently covered a portion of it,
known as the sample size will be used. The estimated population of these study is eighty (80)
which comprises of the staff and manager of selected supermarket Warri.

3.3 SAMPLE SIZE AND SAMPLING TECHNIQUES

A sample is a group of subject selected from a population of study for the purpose of making
generalization about the population from the sample is drawn (Nwabroke 1986)

Sample random sampling techniques was the major method supplies in collecting data for these
research study.

The sample size is eighty (80) using the Taro Yemen’s formula

N
i.e n=
1+ N (e)2

Where

n= sample size

N= population

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I= Constant

0.05= level of significance

N= 80

1+80(0.05)2

N= 80

1+80(0.0025)

N= 80

1+0.2

N= 80

1.2

N= 66.7 Approximately 67

3.4 Research Instrument

The method used for data collection or the method adopted to elicit information
were primary sources and secondary source.

Primary source:

The primary sources of data were gathered from the Respondents through direct
interview and questionnaire method.

Secondary source

The secondary source of data collection comprises of existing materials in libraries

archive and public offices.

3.5 Validity of Research Instrument

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 An instrument is said to be valid if it is measuring what it ought to measure. The
instrument for this research work was validated by my Supervisor and other experts in the
field.

3.6 Reliability of Research Instrument

An instrument is said to be reliable if the response is consistent overtime and the

test-re-test technique was used for the reliability of the instrument and it was observed and
concluded that the instrument is reliable.

The test-re-test is a system where the same questionnaire is administered to the

same group on two different occasions.

3.7 Method of Data Collection

The data for this research are both primary and secondary source.

The primary source consists of personal interview and questionnaire. A questionnaire

was designed and administered to the Respondent selected from the case study to enable the
Researcher gather information on the role of location on the success of a supermarket.

The secondary sources on the other hand are from textbooks, journals and unpublished
literature notes.

3.8 METHOD OF DATA ANALYSIS

The data obtained from various respondents were successfully analyzed with the aid
of Chi – square statistics and the formula for the calculation of the Chi – square is given as:

X2 = ∑ ¿ ¿

fe = frequency expected

fo = frequency observed

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 CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
III.1 DATA PRESENTATION
The data presented below were derived from selected supermarket in Warri Delta state.
Through the administration of questionnaires was administered is sixty seven (67) and
sixty seven (67) were also returned.
The data were collected through questionnaires and tabulated on the basis of the question there
in.
The sample presentation approach is applied and the highest percentages drawn as concluding
result the sample percentage is drawn and applied using the formula.
Number of Respondents 100
X
Total number of Respondent 1

Also in testing the hypothesis of variable, chi-square method was considered appropriate and
shall be adopted. The reason is that it is used to test the relationship between the variables.

SECTION A

TABLE ONE (SEX RESPONSE)

SAMPLE RESPONSE PERCENTAGE %

Male 34 50.7
Female 33 49.3
Total 67 100%
From the above table, 34 male respondent, 33 female respondent which make the total sample 67
respondents with this our sample size is correct and reviewed that there are more of male
respondents than female respondents.

TABLE TWO (MARITAL STATUS RESPONSE)

SAMPLE RESPONSE PERCENTAGE %

Single 30 44.7
Married 37 55.3
Total 67 100%

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From the above table, 30 single respondent, 37 married respondent which make the total sample
to be 67 respondents with this sample size is correct and reviewed that there are more married
respondent than single respondent.

TABLE THREE (AGE RESPONSE)

SAMPLE RESPONSE PERCENTAGE %

10 – 20 10 14.9
20 – 30 27 40.4
30 – 40 20 29.8
40 above 10 14.9
Total 67 100%
From the above table, 10 respondent are with age of 20-30, 27 respondent are with 20-30, 20
respondent are with 30-40, 10 respondent are with 40 above which make the total population to
be 67 with these our sample is correct and revealed that there are within the ages of 20-30 than
10-20, 30-40, 40 above.

TABLE FOUR (CATEGORY)

SAMPLE RESPONSE PERCENTAGE %

Staff 37 55.3
Female 30 44.7
Total 67 100%
From the above table, 37 respondent tick the category of staff, 30 respondent tick category of
casual wish make the total sample to be 67 with this sample, it is correct and reveal that there are
more staff than casual respondents.

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SECTION B

TABLE ONE

What is the average number of person that enter the shop daily?

SAMPLE RESPONSE PERCENTAGE %

0-10 7 10.4
10-20 10 14.9
20-30 30 44.7
30-40 20 29.8
Total 67 100%

From the above table, respondent tick 0-10, 10 respondent ticked 10-20, 30 respondent tick 20-
30, 20 respondent tick 30-40 which make the total sample to be 67 with this our sample it is
correct and revealed that there are more 20-30 respondent than 0-10, 10-20, 30-40.

TABLE TWO

HOW CONSISTENT IS YOUR ANSWER IN QUESTION ONE ABOVE

SAMPLE RESPONSE PERCENTAGE %

Consistent 30 44.9
Very consistent 20 29.8
Most consistent 10 14.9
Highly 7 10.4
Total sample 67 100%
From the above table, 30 respondent ticked consistent; 20 respondent ticked very consistent, 10
respondent ticked most consistent 7 respondent ticked highly consistent which make the sample
size to be 67 with this sample size it is correct and revealed that there are more consistent
respondent than very consistent, most consistent, highly consistent.

TABLE THREE

Will you say that these number of persons are few?

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SAMPLE RESPONSE PERCENTAGE %
Yes 37 55.3
No 30 44.7
Total 67 100%
With this table above, 37 respondent tick Yes, 3 respondent tick No which make the total sample
size to be 67 respondents, with this sample, it is correct and revealed that 37 respondent ticked
Yes than No.

TABLE FOUR

What is the average number of persons that buy from the shop?

SAMPLE RESPONSE PERCENTAGE %

0-10 10 14.9
10-20 7 10.5
20-30 25 37.3
30-40 15 22.4
40 above 10 14.9
Total sample 67 100%
With the above table, 10 respondent tick 0-10, 7 respondent tick 10-20, 25 respondent tick 20-30,
15 respondent tick 30-40, 10 respondent tick 40 above which make the total, it is correct and
reveal that more respondent ticked 20-30 respondent than 0-10, 10-20, 30-40 above.

TABLE FIVE

How consistent is the response?

SAMPLE RESPONSE PERCENTAGE %

Not consistent 9 13.4
Consistent 25 37.4
Very consistent 10 14.9
Most consistent 8 11.9
Highly consistent 15 22.4
Total sample 67 100%

25
With the table above 9 respondent ticked not consistent, 25 respondent ticked consistent, 10
respondent ticked very consistent 8 respondent ticked most consistent, 15 respondent ticked
highly consistent which make the total sample to be 67 it is correct and reveal that more
respondent ticked consistent than, Not consistent, very consistent most consistent, High
consistent.

TABLE SIX

What is the level of sales in the shop?

SAMPLE RESPONSE PERCENTAGE %

Low 8 11.9
Very low 15 22.4
Poor 10 14.9
High 25 37.4
Very high 9 13.4
Total sample 67 100%
With the above table, 8 respondent ticked low, 15 respondent ticked very low, 10 respondent
ticked poor, 25 respondent ticked high, a respondent ticked very high, which make the total
sample to be 67 respondent, with this our sample, it is correct and reveal that more respondent
ticked high than low, very low, poor, very high.

TABLE SEVEN

How consistent is the response?

SAMPLE RESPONSE PERCENTAGE %

Not consistent 14 20.9
Consistent 26 38.9
Very consistent 8 11.9
Most consistent 11 16.5
Highly consistent 7 10.5
Total sample 67 100%
With these table above 14 respondent ticked not consistent, 26 respondent ticked consistent, 8
respondent ticked very consistent, 11 respondent ticked most consistent, 7 respondent ticked
26
highly consistent, which make the total sample to be 67 with the population, it is correct and
reveal that more respondent ticked consistent than not consistent, very consistent, most
consistent, highly consistent.

TABLE EIGHT

What is the level of profit in the shop?

SAMPLE RESPONSE PERCENTAGE %

Low 7 10.5
High 30 44.7
Poor 20 29.8
Very high 5 7.5
Very low 5 7.5
Total sample 67 100%
With the above table, 7 respondent ticked low, 30 respondent ticked high, 2 respondent ticked
poor 5 respondent ticked very high, 5 respondent ticked very low which make the total sample to
be 67, it is correct and reveal that more respondent ticked high than low, poor, very high, very
low.

TABLE NINE

How consistent is the response?

SAMPLE RESPONSE PERCENTAGE %

Not consistent 6 8.96
Consistent 31 46.4
Very consistent 20 29.8
Most consistent 6 8.9
Highly consistent 4 5.9
Total sample 67 100%
With the above table, 6 respondent ticked not consistent, 31 respondent ticked consistent, 20
respondent, ticked consistent, 20 respondent ticked very consistent, 6 respondent ticked most
consistent 14 respondent ticked high which make the total sample to 67. With this sample, it is

27
correct and reveal that more respondent ticked consistent than not consistent very consistent,
most consistent highly consistent.

TEST OF HYPOTHESIS

Ho: There is no significance relationship between location and the performance of a

supermarket

Hi: there is a significance relationship between location and the performance of a

supermarket

The chi-square formula will use to test the hypothesis formulated.

TABLE TEN

Number of customers that patronage the supermarket

Sample Male Female Total

Yes 15 17 32
No 30 5 35
Total sample 45 22 67%

From the chi-square formula

2
∑( fo−fe)
fe

To determine fe, we use the formula column

Column X RowTotal
Grand Total

45 X 32
Fe of 15 = = 21.5
67

45 X 35
Fe of 30 = = 23.5
67

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 22 X 32
Fe of 17 = = 10.5
67

22 X 35
Fe of 5 = = 11.5
67

Our Degree of Freedom (D.F) can be derived by

(c – 1) (r – 1)

(3 – 1) (2 – 1)

(2) (1)

2 x1

Df = 2

2 = 5.99 critical value

(fo) (fe) (fo – fe) (fo – fe)2 ∑( fo−fe)

2

fe
15 21.5 -6.5 42.25 1.97

30 23.5 6.5 42.25 1.79

17 10.5 6.5 42.25 4.02

5 11.5 -6.5 42.25 3.67

11.45

DECISION RULE

If the calculated value is greater than the tabulated value we accept Hi and reject Ho.

Since the calculated value 11.45 greater than 5.99 critical value. We accept Hi and reject Ho
which states that there is a significant relationship between location and performance of a
supermarket.

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4.3 Research result and discussions

From the findings, it is observed that there is a significant relationship between location and
performance of a supermarket.

It also observed that the location of a supermarket determine its sales and patronage. Most of the
respondents agreed that the numbers of persons that enter and buy from the shop daily are more
due to the location.

Majority believed that if a supermarket is located in busy area, it will increase the level of sales
in the shop, and also increase profitability of the supermarket.

Therefore, for a supermarket to growth and expand in size, it need a good location.

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 CHAPTER FIVE

SUMMARY FINDINGS, CONCLUSION AND RECOMMENDATION

5.1 SUMMARY OF FINDING

In carrying out this project work, the following were discovered.

1. There is a significant relationship between location and performance of a supermarket

2. The average number of person that enter the shop daily is 20-30
3. The answer in question one above is consistent because many people were given the
questionnaire and the maximum number of person’s that tick consistent is 30
4. The number of person are few because many people were give the questionnaire and the
maximum number of person is that tick yes is 37
5. The average number of persons that buy from the shop is 20-30 because many people were
the shop gives the questionnaire and the maximum number of persons that tick 20-30 is 25.
6. The respond is consistent because many people were given the questionnaire and the
maximum number of person that tick consistent is 25.
7. The level of sales in the shop is high because many people were given the questionnaire
and the maximum number of person that tick high is 25
8. The response to the above answer is consistent because many people were given the
questionnaire and the maximum number of persons that tick consistent is 26
9. The level of profit is high because many people were given the questionnaire and the
maximum number of persons that thick high is 30
10. The respond to the above answer is consistent because many people were given the
questionnaire and the maximum number of persons is 31

5.2 CONCLUSION

Based on the research findings obtained from the analysis made, the following conclusion could
be drawn on the role of location on the performance of a supermarket.

That in the null hypothesis declared, there is no positive and significant relationship between the
role of location on the performance of a supermarket while the alternative hypothesis revealed
that the role of location on the performance of a supermarket has a positive relationship with the
choice of potential supermarket location.
31
That the role of location on the performance of a supermarket has a positive relationship, that the
null hypothesis showed preliminary survey does not influence the final choice of a supermarket
location while the alternative hypothesis deduced that preliminary survey influence the final
choice locations.

5.3 RECOMMENDATIONS

The following recommendation below are made base on the findings.

1. Owners of a supermarket should get a good location for their supermarket

2. Owners of supermarket should always know the average number of persons that comes
daily.
3. Owners of supermarket should always keep record of the total number of persons if they
are few or high.
4. Owners of supermarket are advice to keep record on the average number of person that
buy from the shop daily.
5. Owners of supermarket should always make sure that their response must always be
consistent.
6. Attendants at supermarket should be made to undergo mandatory induction/orientation
program on public relation attitude.
7. Owners of supermarket should always make sure that their respond must be consistent.
8. Profit in supermarket business must be one of the major focus to supermarket owners.
9. Response to profit must always be consistent.

32
 REFERENCE

Akeni .O. (2015). Business Management, London, Lincola publisher

Alli etal (2001). Business Research, Lagos, Ekpe Oku Graphics.

Drake E.F. (2009). Introduction to Business. Warri, Franvess Graphics Ltd.

Egboro F.O. & Nomuoja J.O. (2010) Business Research Methodology, Sapele, Eke
Graphics publisher.

Elickson, & Paul B. (2007). Quality Competition in Retailing, New York, Akon Graphics Ltd.

Jude .O. Nomuoja (2015) Business Management, Sapele Eke Graphics

Lisc Bay (2007) Grocery Store attraction strategy, New York, Westly Graphics publisher.

Smith, H. (2006) Store characteristics and Retail Oligopoly, London, Matlow Graphics
Ltd.

33
 APPENDIX I

Department of Business Administration &

Management,

Delta State Polytechnic,

Otefe-Oghara,

Dear Sir/Madam

QUESTIONNAIRE ON THE ROLE OF LOCATION ON THE PERFORMANCE OF

SUPERMARKET

I am HND Student of the above named institution and department carrying out a research on the
Role of location on the performance of supermarket, A case study of selected supermarket Warri
Delta State, in partial fulfillment of the requirement for the award of Higher National Diploma in
Business Administration and Management.

You are been selected as one of the respondents to the questionnaire of this study. You are kindly
fill your answers to the best of your ability.

Please your response shall be treated with full confidence.

Thanks for your cooperation

Yours faithfully,

ONOTOLE FAVOUR

34
 APPENDIX II

Please tick the appropriate box that best suit your option.

SECTION A

1. Sex: Male [ ] Female [ ]

2. Marital status: Married [ ] Single [ ]
3. Age: 20-30 [ ] 30-40 [ ] 40-50 [ ] 50 and above [ ]
4. Category: Staff [ ] Manager [ ] Casual [ ]

SECTION B

1. What is the average number of person that enters the shop daily? 0-10 [ ] 10-20 [ ] 20-
30 [ ] 30-4- [ ] above 40 [ ]
2. How consistent is your answer in question in the shop? Consistent [ ] very consistent [ ]
not consistent [ ] most consistent [ ] highly consistent [ ]
3. Will you say that this number of persons are view? Yes [ ] No [ ]
4. What is the average number of person that buy from the shop? 0-10 [ ] 10-20 [ ] 20-
30 [ ] 30-40 [ ] 40 above [ ]
5. How consistent is the response? Not consistent [ ] consistent [ ] very consistent [ ] most
consistent [ ] highly consistent [ ]
6. What is the level of sales in the shop? Low [ ] very low [ ] poor [ ] high [ ] very high [
]
7. How consistent is the response? Not consistent [ ] consistent [ ] very consistent [ ] most
consistent [ ] highly consistent [ ]
8. What is the level of profit in the shop? Low [ ] high [ ] poor [ ] very high [ ] very low [
]
9. How consistent is the response? Not consistent [ ] consistent [ ] very consistent [ ] most
consistent [ ] highly consistent [ ]

35