Assessment of an organisational decision and the financial performance among retail stores in KwaZulu-Natal, South Africa

Abstract

The retail sector has become prominent and fast growing since last decade in South Africa and in most countries across the globe. Retailers are making a huge contribution towards the GDP and the sales completed are a central economic measure. The study has found it crucial to scrutinise the decisions made by retailers and find out whether those decisions have an influence on the financial performance of retail stores specifically in the province of KwaZulu-Natal, South Africa. To satisfy the aim of the study, a quantitative research method was adopted. A total of two hundred copies of questionnaires were administered to participants. The questionnaires were sent out to 5 respondents per retail store. Each retail store chosen to participate in this study consisted of two dissimilar outlets. In total, there were 20 retail stores in KwaZulu-Natal selected to contribute to this research and all these stores are listed on the Johannesburg Stock Exchange. Furthermore, the study used Statistical Package for Social Sciences program for coding and data analysis. The Exploratory Factor Analysis (EFA) and Linear regressions were used with the intention of uncovering the relationships that exist between measured variables. The tests exhibited how organisational decisions impact the retail stores’ financial performance and the results indicated the following coefficients (F (1, 159) = 21.382, p<.0005). The results showed that a constructive association exist between the variables established in the study. Therefore, this study’s findings corroborated prior research findings. The study further makes suggestions to resolve a lot of apprehensions about organisational decisions and how retailers can improve their financial performance since there is a connection between decisions made by the company and financial performance. Taking the suggestions and recommendations of the study into consideration, retailers can enhance their financial performance and make an improvement in future organisational decisions. Additionally, implementing different financial strategies can enhance sales, and growth to meet the company’s objectives. Consequently, as the retail stores progress, the economy is not enfeebled by a diminution from the retail industry’s contribution to the GDP of South Africa