The Effects of Online Retailing On Business Success; A Case Study of Nakumatt Holdings Supermarket

ABSTRACT The study was to establish the role of Online retailing on the success of a business enterprise. The study was conducted at Nakumatt Holding supermarket in Kenya. It was guided by the following objectives; to find out the perception and nature of online retailing, to determine the feasibility of online retailing. To determine the target market group of customers that will opt for online buying and finally to determine the obstacles of online retailing. The study went furthers to examine which customer profile would be attracted to shopping online. The data was obtained from primary data sources such as: interviews, questionnaires, telephone surveys, fieldwork and observation. The data was also obtained from secondary data such as newspaper articles, magazines, journals, published books and internet. According to the findings the study there was conclusive evidence that electronic retailing would not be very successful if introduced in Kenya at the moment. This is because there are many constraints that will hinder the growth of online retailing. The predominant problem is the lack of inaccessible avenue (lack of accessibility to the credit card facilities) with majority of the respondents citing this as the main constrain to online retailing transactions. However, both individuals and business firms see the viability and future potential of online retailing as certain. The study recommended that international development organizations should study the potential impact of online retailing on emerging economies a.nd the least developed countries in an effort to assist in the economic development process of those nations. The study went further to suggest areas of further studies. The areas identified are as shown below. Computer purchases, credit cad usage, proliferation of computers in Kenya especially the urban areas. The relationship between the informal sector and the digital economy needs to be further examined. This could be an important area of policy research.