The Effects of Retail-Mix Strategy on Performance and Competitive Advantage

Abstract

This study aimed to determine empirically whether the retail-mix in small-retail businesses, that includes physical facilities, merchandising, pricing, promotion, services, and organization / personnel has an effect on the performance of small retail businesses and their competitive advantage. The sampling method used was the purposive sampling, in which a total of 280 respondents were drawn among small-retail businesses in Tangerang. The data analysis technique used was Structural Equation Modeling (SEM) using LISREL version 8.8 to test the hypotheses. The results show that, retail-mix strategy, that includes physical facilities or location, merchandising, services, and organization / personnel has an effect on the performance of retailers. Meanwhile, pricing and promotion have no effect on the performance of retailers. Furthermore, the retail-business performance has an effect on the competitive advantage. These results need the attention of small-retail businesses to keep improving the combination of retail-mix strategy, either already has an effect or not on the business performance, because good performance can affect their competitive advantage in this sector.