International Journal of Academe and Industry Research

Volume 3 Issue 4 December 2022

DOI: https://doi.org/10.53378/352937

Effects of Waltermart Supermarket on Small

Retail Business
1
Jay Pee D. De Villa, 2Katrin I. De Villa, 3Darlene U. Banaera &
4
Raul R. Agaran

Abstract

This study assessed the effects of Waltermart Supermarket on small retail businesses in Candelaria,
Quezon, Philippines. Using the adapted questionnaire from Cantuba (2015), retailers assessed the effects
of Waltermart on their sales and revenue, product movement, and customer attraction and retention using
the 5-scale Likert style. The adapted questionnaire from Lee (2008) was also used to assess the strategic
response of the retailers to maintain sustainable operation using marketing practices, merchandising
practices, customer service practices, and business operation practices using 5-scale Likert style. A total
of sixty registered retailers were used as the sample. Findings revealed that retailers are moderately
affected by the presence of Waltermart with 'customer attraction and retention' ranked the highest, and
'sales and revenue' as the lowest. In terms of strategic practices used by retailers to maintain sustainable
operation in the presence of Waltermart, findings revealed that 'business operation practices' ranked the
highest, and 'merchandising practices' as the lowest. For this, retailers need to continue an effective
business operation and enhance the quality, competitiveness, and availability of the product through good
inventory quality control management. As the study offers an assessment of the effects of Waltermart on
retailers, the results suggest an in-depth analysis of the impact of supermarkets on the retailer's
performance through financial ratios.
Keywords: Waltermart Supermarket, small retailers, sustainable operation, business operation, inventory quality
control management

Article History:
Received: August 11, 2022 Revised: November 5, 2022
Accepted: November 6, 2022 Published online: November 15, 2022

Suggested Citation:
De Villa, J.D., De Villa, K.I., Banaera, D.U. & Agaran, R.R. (2022). Effects of Waltermart Supermarket on Small
Retail Business. International Journal of Academe and Industry Research, Volume 3 Issue 4, pp. 107 - 128. DOI:
https://doi.org/10.53378/352937
About the authors:
1 Master in Business Administration, College Instructor, Tayabas Western Academy, Philippines
2Master in Business Administration, Teacher III, Recto Memorial National High School, Philippines
3Bachelor of Science in Accountancy, Tayabas Western Academy, Philippines
4Master in Business Administration, College Instructor, Tayabas Western Academy, Philippines

* This paper is presented in the 3rd International Conference on Multidisciplinary Industry and Academic Research.

© The author (s). Published by Institute of Industry and Academic Research Incorporated.
This is an open-access article published under the Creative Commons Attribution (CC BY 4.0) license,
which grants anyone to reproduce, redistribute and transform, commercially or non-commercially, with
proper attribution. Read full license details here: https://creativecommons.org/licenses/by/4.0/.
108 | International Journal of Academe and Industry Research, Volume 3 Issue 4

1. Introduction

The establishment of supermarkets in rural areas like towns increases economic activity
and local employment. Supermarkets impose a need for human labor, an investment that
consequently turns into consumption and spending which are the key stimulators that boost
development and progress in a local economy. With its numerous amenities offered like air-
conditioned buildings, specious selling areas and parking spaces, cleaning and sanitation
practices, proper food and product handling, convenience and accessibility, and others are the
qualities of the supermarket that attract customers.

According to Vinodini (2016), shopping becomes a vital part of all individuals' everyday
life. Most buyers nowadays have a lot of buying options like online shopping, local wholesale
markets, shopping malls, and supermarkets that offer beautifully decorated and well-organized
facilities. Other positive contributions of supermarkets to customers are quality products, safety,
and hygiene. Supermarkets also tend to have a good service compared with unorganized and
informal markets, store staffs are neatly dressed, polite, attentive, and passionate with work and
customers. It also offers a wide range selection of products and considers to be a "one-stop-shop"
for all daily needs products.

Although supermarkets in rural areas elevate the society and economy, these
supermarkets also create threats to small retail businesses within the vicinity. According to
Mathenjwa (2010) and Migdadi and Abdel-Rahman (2020), there is a relationship between the
distances of small retailers and the percentage decline in terms of turnover and profit. For
instance, Mathenjwa (2010) fount that businesses operating less than 1 kilometer from a
supermarket or mall reported a decline in turnover and profit with 80% and 75%, respectively,
while businesses that operate 5 kilometers away reported a decline of only 30% and 36% in
terms of turnover and profitability, respectively. In short, the research findings indicate that the
small businesses operating closer to a large retailer or supermarket are most likely to be
negatively affected compared to those small businesses whose area of operation is farther from
the supermarket. Similarly, Migdadi and Abdel-Rahman (2020) examined the effects of
Carrefour, Safeway, and C-Town on various retail stores in Jordan and found that the impact of
retail stores location dimensions was moderate to low in two cases, and low in one case. This
LQGLFDWHV WKDW ORFDWLQJ VWRUH¶V EUDQFKHV LQ KLJK DFFHVV YLVLEOH DQG DWWUDFWLYH ORFDWLRQ KDYH ORZ WR
moderate servicescape quality.
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Congruent with the previous studies, this study assessed the effects of the supermarket on
small retail businesses in Candelaria, Quezon, Philippines. With the absence of studies
conducted within the area, the study provides initial solution for the small retailers to minimize
the adverse effect of the existence of Walter Mart Supermarket. This provides fundamental data
for provincial areas targeted by urbanization through establishments of malls, hypermarkets or
similar large-scale chain stores.

2. Literature review
2.1. Food Retail Industry in the Philippines

Republic Act 8762, also known as the Retail Trade Liberalization Act of 2000 governs
the retail trade business in the country. Modern food retailing businesses, such as supermarkets
become an essential part of the everyday lives of the people, especially those residing in the
urban areas. Since 1997, the retail industry plays a significant role in boosting the Philippine
economy. In 2019, as per data published by Statista Research Department:

³«WKH FRXQWU\¶V IRRG UHWDLO VDOHV ZHUH YDOXHG at approximately 50 billion U.S dollars,
almost twice the value compared to ten years ago. In addition, expenditure on food items
was the highest type of spending of Filipino households, amounting to nearly three
WULOOLRQ 3KLOLSSLQH SHVRV DV RI ´

Moreover, during 2020, leading supermarkets dominated the food retailing sector in the
country, as per data released by Statista (see table 1). Despite the ongoing Covid-19 pandemic,
Filipino consumption has substantially increased. With this, supermarkets and hypermarkets
have been the popular ground for bulk consumption.

Table 1
Retail sales by large supermarkets in the country in the year 2020
Name of Supermarket Retail Sales (in million U.S. dollars)
Robinsons Supermarket 1,348
SM Supermarket 1,323
Save More Supermarket 1,263
Puregold 457
Metro Supermarket 397
Waltermart Supermarket 373
Marketplace 300
Gaisano Grand Mall Supermarket 253
NCCC Supermarket 241
Gaisano Capital Market 132
Source: Statista
110 | International Journal of Academe and Industry Research, Volume 3 Issue 4

3DUWV RI PRVW )LOLSLQR¶V JURFHU\ FKHFNOLVW DUH packaged goods which ranged from
processed meats and seafood, as well as dairy, savory snacks, edible oils, rice, pasta, and
noodles. Waltermart Supermarket is a modern retailed business in the food industry, with an
overwhelming number of stores throughout the country for the year 2019 (see table 2), and
reported an impressive sales of 373 million US dollars for the year 2020 (see table 1).

Table 2

Number of Supermarkets in the Philippines in 2019, by retail outlets

Name of Supermarket Number of Stores

Alfamart 578

SaveMore 194

SM Supermarket 57

SM Hypermarket 53

Waltermart 52

Source: Statista

In this regard, it can be inferred that the food retail sector in the country is dominated by
large food retailers such as supermarkets and hypermarkets.

2.2. Role of Retailing

According to Mathenjwa (2010 ³the retail industry is the last link in the marketing
channel from the producer to wholesaler´ ,Q WKLV UHJDUG the retailers play a vital role as market
intermediaries between manufacturers and consumers. As supported by Tustin (2004), retailer
acts as agents between the manufacturer and consumer using informing the party concerned of
what is there offered and what are the demands of consumers.

The inception of the retail industry has been the underlying cause of growth within the
economy. Numerous forms of retailing have been developed over time. For instance, the creation
of supermarkets in the 1930s was a successful movement in the field of business and finance.
Likewise, Levy and Weitz (2006), Ray and Clarke (2020), Borraz et al. (2013) add the rise of
services retailing paved the way to the development of new modes of retailing and institutions
such as food delivery services and firms. The common feature of all formats known and business
LQVWLWXWLRQV LV WKDW WKH\ H[LVW WR DQVZHU WKH FRQVXPHUV¶ QHHGV DQG ZDQWV
 ISSN 2719-0617 (Print) 2719-0625 (Online) | 111

2.3. Expansion of Large Retailers

To sustain their growth, large companies move towards different places as part of their
strategy to further expand their operation. Lighthelm (2012) mentions that the retail industry
serves as a catalyst in which it provides economic boosts and social welfare. With different types
of businesses being established almost anywhere, it provides people with a wide range of
choices. However, a recent study was conducted with the goal of developing a retail strategy for
Soweto indicating the need to improve the retail choices of the people along with the services it
provides within downtown areas (Makhitha, 2016). Hlengani (2007) as cited in Mathenjwa
(2010), found 6RZHWR¶V UHWDLO VSHQGLQJ SRZHU DERYH 5 EQ DQQXDOO\ EXW WKDW RQO\ 5 EQ ZDV
being spent in the township.

This has created a lot of interest involving developers, businessmen, and investors to
expand their operations to rural areas with the promise of economic changes. Research by Tustin
and Styrdom (2006) supported the aforementioned study by giving the contributing factors to the
growth of interest to expand, namely: the emergence of the middle class, particularly those
residing in Soweto. This led to the establishment of larger-scale retail centers in Soweto, such as
Protea Glen, followed by Jabulani Mall and the much anticipated Mponya Mall (Hlengani,
2007). Consequently, it affects the small retail businesses around its vicinity with the heightened
market competition. It is for this reason that the current study focuses on the effect of large
retailers on small retailers and the response of these small businesses thereof.

2.4. Effects of Retail Development in Emerging Markets

Lighthelm (2012) worked with a study that investigated the impact of shopping mall
existence on existing small informal retailers in the Soshaguve Township. The study revealed
that there was a relationship between the distances of small retailers from the shopping mall and
argued that effective customer service might be the key to survival in the prevailing market
competition with large competitors.

Accordingly, a tabulation of results is hereby presented, as cited in the study of

Mathenjwa (2010) derived from a previous study by Lighthelm (2012) on the relationship
between the distances of small retailers in Soshanguve and the percentage decline in terms of
turnover and profit.
112 | International Journal of Academe and Industry Research, Volume 3 Issue 4

Table 3

Percentage of small retailers in Soshanguve that reported a decline in business activity by distance from mall

Distance from the Mall Decline in turnover (%) Decline in profit (%)
Less than 1km 80,0 75,0
1,1 to 2km 71,4 61,9
2,1 to 3km 78,9 73,7
3,1 to 4km 60,0 70,0
4.1 to 5km 30,0 36,8

From the given data in table 3, it can be derived that indeed, distance affects the business
activity of small retailers. As shown, businesses that operate less than 1 kilometer from a
supermarket or mall reported a decline in turnover and profit with 80% and 75% respectively,
while businesses that operate 5 km away reported a decline of only 30% and 36% in terms of
turnover and profitability, respectively. In short, the research findings indicate that the small
businesses operating closer to a large retailer or supermarket are most likely to be negatively
affected compared to those small businesses whose area of operation is farther from the
supermarket.

The present research is similar to this study but extends further by looking at the response
of the small retailers in examining the effect brought upon the existence of Waltermart
Supermarket.

Mathenjwa (2010) as cited by Ikadeh and Cloete (2020) conducted a study that assessed
the impact of large formal retailers by means of collecting data from small retailers. The study
surveyed 222 small retailers in five rural Nebraska communities in which Wal-Mart stores had
opened. The study discovered 72 percent affected by Wal-Mart, 53 percent suffered a negative
consequence, while only 19 percent enjoyed positive effects. Of those retailers negatively
affected, 22 percent experienced a decline in revenues of less than 10 percent during the 12
months, over 30 percent claimed declined more than 10 percent, while only 1 percent indicated
increased by less than 10 percent.

Mcgee (1996) examined how small businesses adapt to the environment after the market
entry of a big retailing competitor and found that most VPDOO UHWDLOHUV¶ SHUFHSWLRQ RI WKH H[LVWHQFH
 ISSN 2719-0617 (Print) 2719-0625 (Online) | 113

of large retailing companies has an adverse impact on their business operations. Accordingly,
half of the respondents revealed a decrease in their sales and profit due to the existence of a huge
competitor. All these ideas point out to emphasize the negative impact felt by small retailers due
to the entrance of large retailers into the market. However, one should not set aside the positive
impacts of retail development.

The following studies shed light on some of the positive impacts; although it applies
directly towards consumers and resident communities. For instance, Guy and Bennison (2002)
found evidence that establishing a superstore brings substantial benefits to consumers, mainly a
wider range of products and lower prices. Moreover, due to its environment, it attracts buyers
which in turn increases expenditure that stimulates development and progress in any local
economy. Similarly, Mitchell and Kirkup (2003) state that retail development is a pivotal
HOHPHQW WKDW UHYLYHV VRPH DUHDV WKDW ZHUH OHIW EHKLQG LQ 8.¶V WRZQV DQG FLWLHV ,Q WKHLU VWXG\
they argued that the establishment of retail stores provides a new social network and helps
contribute to lowering the crime rate and provides a safer environment. Another good point to
note is that retail development provides wealth to the community and to its people by means of
wages and business contribution.

Mclntosh (2002) has a different view on modern supermarket development, which it

provides improvement to landscaping and how other people perceived the area. Furthermore,
Mclntosh (2002) as cited by Mathenjwa (2010) observes that that increased supermarket
competition arising from new retail development within disadvantaged urban areas can lead to a
reduction in the real price of food. While small retail businesses primarily offer food items, they
PD\ QRW EH DEOH WR NHHS XS ZLWK WKH SULFHV ZKLFK LQ WXUQ JUHDWO\ WKUHDWHQV RQH¶V VXUYLYDO ,Q WKLV
regard, they may be forced to close their businesses when they are no longer making profits.

With the gathered literature and studies, it is considered evident enough that the
continued presence of large retail formats such as shopping centers and supermarkets has an
impact on the retailing dynamics in emerging markets. Although there is a lot of evidence that
draws a connection between retail development and its effect on small businesses, its effect is not
adequately documented. An understanding of the effects of retail competition from large retailers
on small retailers is not complete without an assessment of the response of these small retailers
to this competition. The following section will deal with the response of small retailers to
competition from large retailers.
114 | International Journal of Academe and Industry Research, Volume 3 Issue 4

2.5. The Response of Small Retailers to Competition from Large Retailers

According to Peterson and McGee (2000), small retailer needs marketing strategies in
order to reduce the pressure imposed by the existence of large retail businesses. These marketing
strategies involved, but are not limited to increasing promotional efforts, adding or diversifying
products, and pruning products. However, small retailers strongly do not encourage small
retailers in lowering their prices as a response to the market competition with a large retail
business. As opposed to the idea of implementing marketing strategies in order to mitigate the
market competition, McGee and Festervand (1996) does not support these prescriptions. In his
study, he collected data pertaining to the responses of rural towns in the US on the existence of
Wal-Mart and how these small retailers adjusted their strategy. Interestingly, the result of the
study yielded that neither group made any marketing adjustments nor adjust their strategy.

In connection to the above study, Peterson & McGee (2000) studied the six management
responses namely: (1) changes in product mix; (2) store layout; (3) changes in service mix; (4)
store hours; (5) store size; and (6) store location. Despite the negative responses of most retailers
with regards to the impact of large retail business in their operations, half of the respondents in
the study revealed that they do not take any actions mentioned in response to the existence of a
large retail business within their community. This may be attributable to the unwillingness or
perhaps they are in disbelief with the effectiveness of such strategies.

The large retail business's primary weapon in competing in the market is through low
pricing of products and offering discounts. As contested by Taylor and Archer (1996) in their
study, it is difficult to match this strategy most especially by small retailers. Covin and Covin
(1990) suggest that instead of competing directly, small retailers may take actions such as
improving customer service and/or product specialization or customization. In addition, Stone
(1995) recommendation is to offer different/ new products in the market or provide
complimentary merchandise.

On the other hand, some other researchers argue the importance of coexistence strategies.
McGee and Rubach (1997) pioneered a study that focused on understanding and comparing the
behavior of small retailers whose operations are adversely affected by the existence of Wal-Mart
by those who are not directly affected. In their study, they classified two types of environment
according to the competitive pressure felt by small retailers namely: a hostile environment for
 ISSN 2719-0617 (Print) 2719-0625 (Online) | 115

retailers who have experienced negative impact and a benign environment for those who were
not affected. McGee and Rubach argued as cited in Mathenjwa (2010):

³«a complex pattern of competitive behavior, including the combination of creative

pricing tactics and superior merchandising practices, was the most effective behavior for
small retailers competing in hostile environments. In a benign environment, on the other
hand, they suggest that the most appropriate competitive behavior should involve a clear
focus on satisfying selective target´

Moreover, in the study of Lee et al. (2008) it was mentioned that different strategies were
useful for small retailers with their competition towards a large retailer. These strategies were
classified into: (a) marketing strategies; (b) merchandising strategies; (c) customer service
strategies and (d) business operations strategies.

Lastly, some other researchers argued about the relevance of the number of small retailers
around a large retailer towards their competitive response to the market situation. In connection
to this, Mohd and Melewar (2008) emphasize the importance of the role of the government in
regulating the number of small retailers doing business around a large retailer for it imposes too
much competition that may lead to some problems if they are not equipped to compete.

Figure 1

The relationship of variables

as used in the study of

Mathenjwa (2010)
116 | International Journal of Academe and Industry Research, Volume 3 Issue 4

Based on the study of Mathenjwa (2010), the study presented a model that focuses on the
impact of competition from large retailers on small retailers and the response of these businesses
to the competitive pressures at the market. The response of these small retailers is simulated by
the impact of the large retailers (see figure 1).

Figure 2

The relationship of variables as used in the study of Cantuba, et.al (2015)

In addition, a local study conducted by Cantuba et al. (2015) presented a model that
relates to the impact of mall establishment on micro-business enterprises as a basis for business
continuity (see figure 2).
 ISSN 2719-0617 (Print) 2719-0625 (Online) | 117

Figure 3

Conceptual Framework for a Sustainable Operation of Small Retail Business

This study develops a framework as shown in figure 3 that shows the relationship of
variables used. Business profile and distance are important variables to assess the effects of
Waltermart Supermarket on the operation of the retailers. The study assesses the effects of the
supermarket on retailers in terms of their (a) sales and revenue, (b) product movement, and (c)
customer attraction and retention. After evaluating the effects, the study assesses the different
strategies and practices like (a) marketing, (b) merchandising, (c) customer service, and (d)
business operation employed by the retailers to maintain a sustainable operation.
118 | International Journal of Academe and Industry Research, Volume 3 Issue 4

3. Methodology

The study employed the descriptive method of research. As a widely accepted method,
the descriptive method of research is a fact-finding study that involves adequate and accurate
interpretation of data. It is used to gather information regarding the effects of Waltermart
Supermarket on small retail businesses in Candelaria, Quezon, Philippines.

Figure 4

Sample Design Map

A total of sixty (60) registered multitudes of retailers that were most likely affected by
the presence of Waltermart Supermarket were used as the sample. The sampling design map (see
figure 4) was used as a guide to determine the number of respondents per given distance.
Accordingly, the farther the location of small retailers, the little the number of respondents to be
gathered from that location or area, inversely, the near the location of small retailers to
Waltermart Supermarket, the greater the number of respondents to be gathered from a specific
location which covers Malabanban Norte, Poblacion (the town proper) and Pahinga Public
Market. The demographic profile of the retailers is presented in the following figures and table.
 ISSN 2719-0617 (Print) 2719-0625 (Online) | 119

Figure 5

Educational Attainment of Small Retail Business Owners and Managers

9
8
7
6 Highschool Level

5 College Level
4 Post Graduate
3
2
1
0
Malabanban Norte Poblacion Pahinga Public Market

Figure 6

Nature of the Business

9
8
7
6
5 Grocery Store
4 Meat Shops
3 Fruit & Veg. Stand
2
1
0
Malabanban Norte Poblacion Pahinga Public Market
120 | International Journal of Academe and Industry Research, Volume 3 Issue 4

Figure 7

Number of employees

14
12
10
8 1-4 employees
6
5-8 employees
4
More than 8 employees
2
0
Malabanban Poblacion Pahinga Public
Norte Market

Figure 8

Years of Operation

9
8
7
6 Less than a year
5 1-5 years
4
6-10 years
3
11-15 years
2
more than 16 years
1
0
Malabanban Poblacion Pahinga Public
Norte Market

Table 4

Distance and number of businesses near Waltermart Supermarket

Distance from
Business Location Waltermart Frequency Percentage Rank
Supermarket
Malabanban Norte within 500 meters 30 50.00% 1
Poblacion 500m - 800m 20 33.33% 2
Pahinga Public Market 900m ± 1.5km 10 16.67% 3
 ISSN 2719-0617 (Print) 2719-0625 (Online) | 121

The main instrument used for the study is a survey questionnaire that consists of four
SDUWV 7KH ILUVW DQG VHFRQG SDUW RI WKH TXHVWLRQQDLUH LV DERXW WKH UHWDLOHUV¶ SURILOH DQG GLVWDQFH
from the Waltermart Supermarket. The third part of the instrument was adapted from the
questionnaire of Cantuba et al. (2015) that pertains to the effects of Waltermart Supermarket on
small retailers. The fourth and last part of the instrument was adapted from Lee et al. (2008) that
pertains to the strategies used by the small retailers to sustain their operation and survive the
competition imposed by larger retailers.

The researcher distributed and retrieved the instrument. Data were interpreted and
analyzed by means of frequency, percentage, mean, and analysis of variance.

4. Findings and Discussion

Table 5

Effects of Waltermart Supermarket to Small Retailers in terms of Sales and Revenue

Weighted
Indicators Verbal Interpretation Rank
Mean
1 The order size of existing customers has decreased upon 2.75 Moderately Agree 5
the existence of Waltermart Supermarket.
2 Sales quota decreased. 2.80 Moderately Agree 4
3 There is a decrease in the rate of discount and/or 3.05 Moderately Agree 3
consignment.
4 Monthly gross sales have decreased upon the existence of 3.15 Moderately Agree 2
Waltermart Supermarket.
5 Monthly profit has decreased upon the existence of 3.20 Moderately Agree 1
Waltermart Supermarket.
Overall Weighted Mean 2.99 Moderately Agree

Table 5 summarizes the effects of Waltermart Supermarket on the sales and revenue of
small retail businesses. (Statement 5) ³0RQWKO\ SURILW KDV GHFUHDVHG XSRQ WKH H[LVWHQFH RI
:DOWHUPDUW 6XSHUPDUNHW ´ ranked no. 1 with a weighted mean of 3.20 and verbal interpretation
of Moderately Agree. (Statement 4) ³0RQWKO\ JURVV VDOHV KDYH GHFUHDVHG XSRQ WKH H[LVWHQFH RI
:DOWHUPDUW 6XSHUPDUNHW ´ ranked no.2 with a weighted mean of 2.15 and verbal interpretation
of Moderately Agree. (Statement 3) ³7KHUH LV D GHFUHDVH LQ the rate of discount and/or
FRQVLJQPHQW ´ ranked no. 3 with a weighted mean of 3.05 and verbal interpretation of
Moderately Agree. (Statement 2) ³6DOHV TXRWD GHFUHDVHG ´ ranked 4 with a weighted mean of
122 | International Journal of Academe and Industry Research, Volume 3 Issue 4

2.80 and verbal interpretation of Moderately Agree. (Statement no. 1) ³7KH RUGHU VL]H RI H[LVWLQJ
FXVWRPHUV KDV GHFUHDVHG XSRQ WKH H[LVWHQFH RI :DOWHUPDUW 6XSHUPDUNHW ´ ranked 5 with a
weighted mean of 2.75 and verbal interpretation of Moderately Agree. The data gathered from
small retailers shared the result almost the same as research conducted in the international
studies. The existence of large retailers truly affects the sales and revenue of small retailers
around the vicinity. In general, an overall weighted mean for sales and revenue was computed
and yields 2.99 with a verbal interpretation of Moderately Agree.

Table 6

Effects of Waltermart Supermarket to Small Retailers in terms of Product Movement

Weighted Verbal
Indicators Rank
Mean Interpretation
1 The volume of (product/stocks) ordered from the 2.73 Moderately Agree 5
distributor decreased upon the existence of the
Waltermart Supermarket.
2 Number of inventory replenishment decreased upon the 2.90 Moderately Agree 4
existence of the Waltermart Supermarket.
3 The conversion of product into cash or credit increased 3.13 Moderately Agree 2.5
upon the existence of the Waltermart Supermarket.
4 The movement of goods into, through and out of a place 3.13 Moderately Agree 2.5
decreased.
5 The number of goods sold decreased. 3.25 Moderately Agree 1
Overall Weighted Mean 3.03 Moderately Agree

Table 6 shows the effects of Waltermart Supermarket on small retailers in terms of

product movement. (Statement 5) ³7KH QXPEHU RI JRRGV VROG GHFUHDVHG ´ ranked no. 1 with a
weighted mean of 3.25 and verbal interpretation of Moderately Agree. (Statement 3) ³7KH
conversion of product into cash or credit increased upon the existence of the Waltermart
6XSHUPDUNHW ´ (Statement 4) ³7KH PRYHPHQW RI JRRGV LQWR through and out of a place
GHFUHDVHG ´ ranked no. 2.5 with a weighted mean of 3.13 and verbal interpretation of Moderately
Agree. (Statement 2) ³1XPEHU RI LQYHQWRU\ UHSOHQLVKPHQW GHFUHDVHG XSRQ WKH H[LVWHQFH RI WKH
:DOWHUPDUW 6XSHUPDUNHW ´ ranked no. 4 with a weighted mean of 2.90 and verbal interpretation
of Moderately Agree. (Statement 1) ³7KH YROXPH RI SURGXFW VWRFNV RUGHUHG IURP WKH
GLVWULEXWRU GHFUHDVHG XSRQ WKH H[LVWHQFH RI WKH :DOWHUPDUW 6XSHUPDUNHW ´ and. ranked no.5 with
a weighted mean of 2.73 and verbal interpretation of Moderately Agree. The movement and flow
 ISSN 2719-0617 (Print) 2719-0625 (Online) | 123

of products and merchandise were negatively affected by the existence of a large retailer. Thus,
affects the inventory turnover of small retailers. In general, an overall weighted mean for product
movement of small retailers was computed and yields 3.03 with a verbal interpretation of
Moderately Agree.

Table 7

Effects of Waltermart Supermarket to Small Retailers in terms of Customer Attraction and Retention

Weighted Verbal
Indicators Rank
Mean Interpretation
1 The number of old customers duly patronizing the 3.23 Moderately Agree 3
products decreased upon the existence of Waltermart
Supermarket.
2 The number of walk-in customers decreased upon the 2.95 Moderately Agree 5
existence of Waltermart Supermarket.
3 8QDYDLODEOH SURGXFWV WKDW VXLW FXVWRPHU¶V GHPDQG. 3.35 Moderately Agree 2

4 Lacks complementary products offer to customers 3.45 Moderately Agree 1

5 A decline in rewards, points, and discounts given to 3.13 Moderately Agree 4

customers and customer with bulk order.
Overall Weighted Mean 3.22 Moderately Agree

Table 7 shows the effects of Waltermart Supermarket on small retailers in terms of

customer attraction and retention. (Statement 4) ³/DFNV FRPSOHPHQWDU\ SURGXFWV offer to
FXVWRPHUV´ ranked no. 1 with a weighted average of 3.45 and verbal interpretation of Moderately
Agree. (Statement 3) ³8QDYDLODEOH SURGXFWV WKDW VXLW FXVWRPHU¶V GHPDQG ´ ranked no. 2 with a
weighted average of 3.35 and verbal interpretation of Moderately Agree. (Statement 1) ³7KH
number of old customers duly patronizing the products decreased upon the existence of
:DOWHUPDUW 6XSHUPDUNHW ´ ranked no. 3 with a weighted mean of 3.23 and verbal interpretation
of Moderately Agree. (Statement 5) ³$ GHFOLQH LQ UHZDUGV SRLQWV DQG GLVFRXQWV JLYHQ WR
FXVWRPHUV DQG FXVWRPHU ZLWK D EXON RUGHU ´ ranked no 4 with a weighted mean of 3.13 and
verbal interpretation of Moderately Agree. (Statement 2) ³7KH QXPEHU RI ZDON-in customers
GHFUHDVHG XSRQ WKH H[LVWHQFH RI :DOWHUPDUW 6XSHUPDUNHW ´ ranked no 5 with a weighted mean of
2.95 and verbal interpretation of Moderately Agree. In general, an overall weighted mean for
124 | International Journal of Academe and Industry Research, Volume 3 Issue 4

customer attraction and retention of small business retailers was computed and yields 3.22 with a
verbal interpretation of Moderately Agree.

The last part of the survey questionnaire is about the different strategies and practices
employed by small retailers to maintain sustainable operation in terms of (a) marketing practices,
(b) merchandising practices, (c) customer service practices, and (d) business operation practices.

Table 8

Strategic response and practices employed by small retailers to maintain sustainable operation

Pahinga Public
Malabanban
Strategic Response and Practices Poblacion Market Total
Norte
% Rank % Rank % Rank % Rank
Marketing 94 2nd 85 2nd 83 3rd 87.33 2nd
Merchandising 75 4th 77 4th 80 4th 77.33 4th
Customer Service 85 3rd 83 3rd 93 2nd 87.00 3rd
Business Operation 97 1st 89 1st 98 1st 94.67 1st

Table 8 shows the strategic response and practices used by small retailers to maintain
sustainable operation in the presence of Waltermart Supermarket. It can be observed that
Malabanban Norte and Poblacion have the same order of practices employed to maintain
VXVWDLQDEOH RSHUDWLRQ ZKLFK LV µEXVLQHVV RSHUDWLRQ¶ DV WKH SULPDU\ SUDFWLFH IROORZHG E\
µPDUNHWLQJ¶ WKHQ µFXVWRPHU VHUYLFH¶ DQG ODVW LV WKH µPHUFKDQGLVLQJ¶ 3DKLQJD 3XEOLF 0DUNHW DOVR
HPSOR\HG µEXVLQHVV RSHUDWLRQ¶ DV WKHLU SULPDU\ SUDFWLFH WR PDLQWain a sustainable operation,
IROORZLQJ WKH SUDFWLFH RI µFXVWRPHU VHUYLFH¶ µPDUNHWLQJ¶ DQG µPHUFKDQGLVLQJ¶ ,Q WRWDO VPDOO
UHWDLOHUV HPSOR\HG DQG FKRRVH µEXVLQHVV RSHUDWLRQ¶ DV D SULPDU\ SUDFWLFH WR PDLQWDLQ VXVWDLQDEOH
operation in the presence of Waltermart Supermarket, with ninety-four and sixty-seven percent
IROORZHG E\ µPDUNHWLQJ¶ UDQNHG QR ZLWK HLJKW\-seven and thirty-three percent
µFXVWRPHU VHUYLFH¶ UDQNHG QR ZLWK HLJKW\-VHYHQ SHUFHQW DQG µPHUFKDQGLVLQJ¶
ranked no. 4 with seventy-seven and thirty-three percent (77.33%).

5. Conclusion

This study assessed the effects of Waltermart Supermarket on small retail businesses in
Candelaria, Quezon, Philippines. Using the adapted questionnaire from Cantuba et al. (2015),
 ISSN 2719-0617 (Print) 2719-0625 (Online) | 125

retailers assessed the effects of Waltermart Supermarket on their sales and revenue, product
movement, and customer attraction and retention using a 5-scale Likert style. The adapted
questionnaire from Lee et al. (2008) assessed the strategic response and practices used by small
retailers to maintain sustainable operation using marketing practices, merchandising practices,
customer service practices, and business operation practices using 5-scale Likert style. The
sampling design map was used as a guide to determine the number of respondents per given area.
Accordingly, the farther the location of the small retailers, the lesser the number of respondents
from that area, inversely, greater number of respondents will be assigned to the location or area
nearest to Waltermart Supermarket. A total of sixty (60) registered multitudes of retailers that
were most likely affected by the presence of Waltermart were used as the sample, thirty (30) of
these were from Malabanban Norte, twenty (20) from Poblacion, and ten (10) from Pahinga
3XEOLF 0DUNHW $V WR WKH EXVLQHVV¶V SURILOH PDMRULW\ RI WKH PDQDJHUV DQG RZQHUV IURP
Malabanban Norte were high school graduates, while most of the managers and owners from
Poblacion and Pahinga Public Market were college graduates. As to the nature of the business,
findings revealed that meat shops dominate the Malabanban Norte and Pahinga Public Market
area, while most of the retailers in Poblacion were engaged in grocery stores. Employers also
prefer to have one (1) to four (4) employees, and as to years in operation, it is noticeable that the
retailers in Pahinga Public Market have the longest years in operation with an equal percentage
of six (6) to ten (10) years, and above sixteen (16) years in operation.

When it comes to the effects of Waltermart Supermarket, findings revealed that retailers
are moderately affected by the presence of Waltermart Supermarket on customer attraction and
retention (3.22), product movement (3.03) and sales and revenue (2.99). In terms of strategic
practicHV XVHG ILQGLQJV UHYHDOHG WKDW µEXVLQHVV RSHUDWLRQ SUDFWLFHV¶ DV D SULPDU\ VWUDWHJLF
response to maintain sustainable operation (94.67%), followed by marketing practices (87.33%),
µFXVWRPHU VHUYLFH SUDFWLFHV¶ DQG µPHUFKDQGLVLQJ SUDFWLFHV¶

For this, retailers need to continue an effective business operation practice and enhance
the quality, competitiveness, and availability of the product through good inventory quality
control management. Business owners and managers also need to re-design and re-organize the
store and maintain cleanliness with proper ventilation to uphold the integrity of the store and
increase convenience for the customers. Small retailers can also offer competitive prices by
reducing operational costs through monitoring and controlling. Selling bundle products, offering
126 | International Journal of Academe and Industry Research, Volume 3 Issue 4

complementary goods, giving discounts and freebies can also attract more customers. As the
study offers an assessment of the effects of Waltermart Supermarket on small retailers, the
results suggest an in-GHSWK DQDO\VLV RI WKH LPSDFW RI WKH VXSHUPDUNHW RQ WKH UHWDLOHU¶V
performance through financial ratios.

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