THE EFFECT OF INTENSE COMPETITION FROM WELL ESTABLISHED BUSINESSES ON POORLY RESOURCED RETAIL BUSINESSES

Abstract

Data was gathered from 62 traditional retail businesses at Tembisa Township by using a questionnaire to assess and evaluate the extent to which traditional retail businesses are affected by large scale shopping malls. A review of the literature shows that traditional retail businesses used to supply goods, products and services to people who live and work at Tembisa Township before the mid-1990s. Since then, large retailers and shopping malls have opened up shops at Tembisa Township, thereby competing against traditional small scale retail businesses. A significant market share has since been lost to large retailers and shopping malls by traditional small retailers and businesses. The results showed that some of the traditional retail businesses had managed to survive by using innovative marketing and networking techniques. The key attributes of resilient businesses were keeping very close working relationships with their historical customers, comparing selling prices on a daily basis, actively encouraging customers to keep supporting their businesses, opening up their shops earlier than 9:00 AM each day, staying very late in the evening at work, working extended hours, the use of social media platforms, selling on credit and ordering merchandise in bulk and on credit.