To Investigate the Effects of Retailing on a Business’ Profitability

Abstract

The role of retailing in enhancing profitability has in the recent times caught the attention of many businesses across the globe. In this respect, businesses and organizations have in recent past focused on increasing retailing in selling their products on the market in order to increase their profits. However, whereas retailing is gaining a lot of attention among businesses across the globe, there is little research that has been conducted in order to ascertain its impact on profitability. Therefore, this research will investigate the effects of retailing on a business’ profitability. In line with this, this study employed deductive approach as well as quantitative analysis in collecting, analysing, organizing and presenting data and the research findings. Stratified sampling was used to identify the appropriate sample that provided the primary data. Primary data was supplemented by secondary data that was collected from past researches and studies. More importantly, secondary data provided an important background for the study. In this regard, books and journals were the main source of secondary data. More importantly, the secondary and primary research findings in this study were consistent. Notably, the research found out that there are different factors that affected profitability in retailing businesses. Among these factors include price, location of the business, technology, advertising and promotion, and product quality. However, it was noted that pricing had a greater impact on profitability in retailing as compared to other factors. Speaking from this point of view, the research concluded that retailing increased profitability of businesses. However, this depended heavily on how the retail owners handled factors such prices, business location, advertising among others.