EFFECT OF ORDER ACCURACY ON PROFIT MARGINS OF RETAIL SUPERMARKETS IN KENYA: A CASE OF CARREFOUR IN NAIROBI COUNTY
Abstract
Purpose of the Study: The study examined the effect of order accuracy on the profit margins of Carrefour supermarkets in Nairobi County, Kenya.
Statement of the Problem: Retail supermarkets in Kenya operate under narrow profit margins and increasing operational costs. Inaccurate order fulfilment may increase returns, re-delivery expenses, customer complaints, and lost sales, thereby affecting profitability. However, limited empirical evidence exists on the specific effect of order accuracy on profit.
Methodology: The study adopted a descriptive research design and targeted 183 managers and supervisors from Carrefour supermarkets in Nairobi County. A sample of 126 respondents was selected using stratified random sampling, and 113 completed questionnaires were returned, representing a 90.0% response rate. Data were analyzed using descriptive statistics, Pearson correlation, and regression analysis.
Findings: Pearson correlation showed a strong positive and statistically significant relationship between order accuracy and profit margins (r = .724, p < .01). Regression analysis further indicated that order accuracy had a positive and statistically significant effect on profit margins (β = .368, t = 8.463, p < .001).
Conclusion: The study concluded that improved order accuracy is associated with stronger profit margins.
Recommendation: Carrefour management should strengthen order-verification procedures, logistics coordination, and monitoring of order errors to reduce returns, re-delivery costs, and operational losses.
Keywords: Order accuracy, profit margins, Carrefour, retail supermarkets, Kenya
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