Sensing Capabilities and Performance of Supermarkets in Kenya

The retail sector in Kenya has experienced the growth of supermarkets in the last two decades. As a result of this growth, the sector is experiencing unprecedented competition and underperformance which has led to the closure of some leading brands. Despite pursuing various strategies such as branch increases, shop layout, ambiance, and in-store promotions to increase the footprint, customer loyalty, and sales; supermarkets are struggling to survive. This research sought to examine the influence of sensing capabilities on the performance of supermarkets in Kenyan cities. The research was anchored on the dynamic capability theory. The research was grounded on positivism research philosophy with the use of descriptive research design. A self-administered questionnaire was used to collect primary data. The research target population was 629 licensed supermarkets. The research population consisted of 1258 senior managers and the sample size was 304 respondents. A stratified random sampling method was used to select the sample size in each of the four cities namely Nairobi, Mombasa, Kisumu, and Nakuru. Descriptive statistics such as mean and standard deviation, and inferential statistics such as correlation, ANOVA and regression analysis were used to analyse the data. SPSS software version 28 was utilized for data exploration. The regression results revealed that sensing capabilities have a statistically significance influence on the performance of supermarkets in the Kenyan cities (β = 0.535, t = 10.393, p < 0.05). The research recommends that supermarkets management should consistently conduct market surveys to identify new opportunities that will lead to improved performance. Investors in the supermarket sector should scan the business environment to identify valuable opportunities in order to increase survival and performance.