Abstract

MAKHITHA, KM. Independent retailers in South Africa: how do they select their suppliers for survival?. JCMAN [online]. 2017, vol.14, n.1, pp.416-440. ISSN 1815-7440.

The purpose of this research article was to determine the supplier selection criteria used by independent retailers in Soweto, South Africa. Independent retailers are facing severe competitive pressure from large retailers that have entered the township and rural areas. Some of the independent retailers have closed down due to inability to compete with large and resourceful retailers. Supplier selection could enable the independent retailers to gain competitive advantage. A survey was conducted among 104 independent retailers in South Africa (SA) to determine the supplier selection criteria they use to evaluate their suppliers. The results showed that the majority of independent retailers still buy their products from wholesalers when they could be buying directly from the manufacturers. They could join buying groups that will buy products on their behalf and negotiate better prices for them. Independent retailers rated price, supplier meets customer specification and quality as the most important criteria, in line with the existing literature. Supplier selection criteria were found to differ across gender, education levels and years of operation but did not differ across age.

Keywords : Independent retailers; supplier selection; supplier selection criteria.

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