ULAB 2112 ADVANCED ENGLISH

SESSION: 2012/2013 (2)

RESEARCH REPORT ON
DECLINE OF GROCERY SHOP BUSINESS IN
TAMAN UNIVERSITI, SKUDAI
GROUP MEMBERS:
CHIA GIN JIAH C12BE0008
CHU SHU ERN C12BE0009
LEE JUN XUAN C12BE0016





1.0 Introduction
1.1 Background Study
A sundry shop, convenience store, corner store or corner shop is a small store that stocks a range of
everyday items such as groceries, toiletries, alcoholic and soft drinks, tobacco products and
newspapers. Such shops may also offer money order and wire transfer services. They differ from
general stores and village shops in that they are not in a rural location.
Convenience stores usually charge higher than ordinary supermarkets, which they make up for with
convenience by serving more locations and having shorter cashier lines. (Source: Wikipedia.org)
According to the National Statistics Department. There are 50 000 sundry shops in Malaysia. Sundry
shops are generally grouped under the small business sector.
According to the small and Medium Business Enterprise Corporation Malaysia (SME Corp. 2011), a
small business is defined as an entity which:
Employs fewer than 20 full-time workers and earns an annual revenue of less than RM1
million (if it is a service provider), or
Employs fewer than 50 full-time workers and earns less than RM10 million (if it is
manufacturing)
Hence, the small business category also includes micro-businesses which are firms employing fewer
than 5 full-time workers and earning less than RM200 000 per annum (service providers), and
RM250 000 (manufacturers). Small businesses in Malaysia are usually either partnerships or family-
run. In recent years, the issues concerning small businesses has escalated, especially the trading
without license and red tape in the license application process.

1.2 Statement of the Problem
Many grocery shops today are experiencing a dramatic decline in their businesses. However, there
are a number of grocery shops that are still managing to survive ad even expand their businesses
into minimarts. Some are even going as far as to explore other business ventures.

The general theory is that bigger retailers are the main cause of the decline in small grocery shops
businesses. Given the situation, the Grocery Shops Association of Malaysia should take serious
efforts in studying the cause of the decline in grocery shop business and the best recommendations
to improve the situation through research and public feedback.

1.3 Purpose of Study
Given the rising number of hypermarkets and supermarkets, the increasing competition is making
an impact on smaller businesses like grocery shops. Many of these small shops eventually close
down due to business losses and as a result, many small business owners en up unemployed.

In response to this concerning fact, this issue has to be investigated further. The purpose of the
study in this research is to analyse the current situation being faced by these small businesses and
finally, to give recommendations to help to improve their plight.

1.4 Objectives of the study
The objectives of the study are:
i. To study the current trends in customers decision making, attitudes and behaviours in relation
to grocery shopping.
ii. To investigate the causes of decline in grocery shop businesses.
iii. To explore and provide proper recommendations to business owners in order to help increase
sales.































1.5 Research Questions
QUESTIONNAIRE
WE ARE A GROUP OF STUDENTS FROM UTM TAKING THE SUBJECT ULAB 2112 ADVANCED ENGLISH. OUR
STUDY IS TO INVESTIGATE THE CAUSE FOR THE DECLINE OF GROCERY SHOP BUSINESSES IN TAMAN
UNIVERSITI.
_________________________________________________________________________________________
A. DEMOGRAPHIC INFORMATION
1. I AM
MALE FEMALE

2. I AM ______ YEARS OLD

3. CURRENTLY I AM A ?
STUDENT
HOUSEWIFE
SELF EMPLOYED
GOVERNMENT SERVANT
PRIVATE SECTOR SERVANT
UNEMPLOYED
4. MY INCOME IS ___ PER MONTH
BELOW RM 2,000 RM2,000-RM4,999 RM5,000-RM9,999 RM10,000 AND ABOVE
B. SHOPPING PREFERENCE
5. I DO MY GROCERY SHOPPING.
DAILY WEEKLY MONTHLY
6. I USUALLY SHOP AT
WET MARKET/PASAR PAGI
GROCERY SHOPS IN TAMAN UNIVERSITI
GROCERY SHOPS OUT OF TAMAN UNIVERSITI
GIANT/JUSCO/HYPERMARKETS

7. I USUALLY DO MY SHOPPING DURING
7 AM. 10 AM. 5PM. 8PM.
11AM. 1 PM. 9PM. 12AM.
2PM. 4PM.

8. PLEASE TELL US ABOUT WHAT DO YOU LIKE ABOUT GROCERY SHOPS (YOU MAY TICK MORE THAN 1)
RARE/TRADITIONAL ITEMS SERVICE PROVIDED IS MORE PERSONAL
CERTAIN ITEMS ARE CHEAPER THAN COMPETITORS QUALITY OF GOODS
COZY ENVIRONMENT LOCATION
CREDIT PAYMENT OTHERS, PLEASE STATE____________________

9. PLEASE TELL US ABOUT WHAT DO YOU DISLIKE ABOUT GROCERY SHOPS
HYGIENE CRAMPED ENVIRONMENT
LESS CHOICES SERVICE
PAYMENT METHOD PRICE OF GOODS
FACILITIES (PARKING, WIFI, TOILET ETC)
OTHERS, PLEASE STATE
______________________________________________________________________________________
10. PLEASE TELL US YOUR OPINION ON HOW TO INCREASE SALES IN GROCERY SHOPS (YOU MAY TICK MORE
THAN ONE)
IN-STORE COUPONS
ITEMS THAT APPEAL TO CHILDREN PLACED ON BOTTOM 2 ROWS
CHANGE ITEM LOCATION
PLACE IMPULSE ITEMS (EG:GUM/CANDY) AT CHECKOUT COUNTER
OFFER FREE SAMPLES
SMILE WHEN CUSTOMERS ENTER
PROVIDE DISCOUNT/LOYALTY CARD FOR CUSTOMERS
FIX PRICES OF FAST MOVING ITEMS A BIT LOWER THAN SUPERMARKET
TAKE ORDERS VIA SMS, PHONECALL, EMAIL AND PROVIDE DELIVERY TO DOORSTEP
DISTRIBUTE FLYERS REGULARLY
OTHERS, (PLEASE STATE)_________________________________________________________________
11. IF A GROCERY SHOP HAS IMPROVED ON YOUR AREAS YOU HAVE PICKED IN QUESTION NO 8, WOULD YOU
SHOP AT GROCERY SHOPS INSTEAD OF OTHER COMPETITORS? WHY?

YES NO
________________________________________________________________________________________
12. DO YOU THINK GROCERY SHOPS ARE STILL IMPORTANT AND RELEVANT? PLEASE STATE YOUR REASON.

YES NO
REASON:
_________________________________________________________________________________________







1.6 Significance of the study
There is no specific study that investigates the decline in grocery shop business in Taman University,
Skudai. The studies conducted by the Malaysian Government do not highlight the specific areas of
study in the suburban community. Hence, the findings of this study is important to help the small
business owners in Taman University to find out the causes of their business decline and prepare
recommendations and also to investigate the publics choices and opinions towards grocery shops.
With this information at hand, this study could possibly become a guide to steer the small business
owners targets and strategies in a better direction and ultimately, improving their businesses.

1.7 Scope of the study
This study will be conducted in 3 forms to investigate the causes of the decline in a more subjective
way. The first method is to interview small business owners, MPJBT, customers and the public,
especially youths, housewives and the elderly at Taman Universiti.

The second will be to hand out questionnaires to a number of grocery shops at Taman Universiti.
Another 50 questionnaires will be distributed to the public.

2.0 Literature Review
2.1 Definition of grocery shop
A sundry shop, convenience store, corner store or corner shop is a small store that stocks a
range of everyday items such as groceries, toiletries,alcoholic and soft drijnks, tobacco products and
newspapers. Such shop may also offer money order and wire transfer services. They differ from general
stores and village shops in that they are not in a rural location.
Convenience stores usually charge higher than ordinary supermarket, which they make up for
with convenience by serving more locations and having shorter cashier lines.(source: Wikipedia.org).
According to the National Statistics Department, there are 50,000 sundry shops in Malaysia. Sundry
shops are generally grouped under the small business sector.
According to the Small and Medium Business Enterprise Corporation Malaysia (SMECorp.2011),
a small business is defined as an entity which:
Employs fewer than 20 full-time workers and earns an annual revenue of less than RM 1 million
( if it is a service provider), or
Employs fewer than 50 full-time workers and earns less than RM 10 million ( if it is
manufacturing).
Hence, the small business category also include micro-business which are firms employing fewer
than 5 full-time workers ad earning less than RM 200,000 per annum (service provider) and RM 250,000
(manufactures). Small businesses in Malaysia are usually either partnerships or family-run. In recent
years, the issues concerning small business has escalated, especially trading without license and red-
tape in the license application process. Grocery/ sundry shops are usually a convenience place for
people to get their stuff when they need it in an emergency.

2.2 History of a grocery/sundry shops
Piggly Wiggly is the frist self-serving shop which was opened in Memphis, Tennessee by Clarence
Saunders, who was an inventor and entrepreneur. Saunders did this to generate revenue, because now
as customers wandered around aimlessly searching for the items that they intended to buy they were
more likely to pick out several more during their search.
The Piggly Wiggly phenomenon grew rapidly; at the end of the 1930s, there were over 2,600
stores nationwide. Other independent and chain grocery stores changed to self-service through the
1930s.Grocery stores also began to offer products beyond the normal scope of the dry-good grocery
store. They added meat, dairy, fruit and vegetables, and breads.
The phenomenon and the variety of products sold began in the evolvement of mini market and
then to supermarket as what we see nowadays. The supermarkets are then continuously evolved to a
larger store which is known as hypermarket for example, Tesco, Aeon, Giant, Mydin and
2.3 Classification of grocery/sundry shops
Grocery/sundry shops are classified as a small business. They could not be categorized in a
specific good sold shop as the word sundry carried the meaning of variety and miscellaneous. The
shops are available for purchase sundry types products, clothing, souvenirs, books and many others. The
sundry types products include medicines, toiletries, general household supplies, candy and gum, snack
items, soft drinks, bottled water, juices, ice cream, cameras, batteries, suntan lotions and more.
Some even sell magazines, paperback books and newspapers. With the variety types of goods
sold in the sold, the proper arrangement and displays of goods sector should be applied. Some sundry
shops who sell fresh food such as vegetable, fish, potatoes, and etc. should always make sure the food
fresh and clean every day.
2.4 Research in grocery/sundry shops
TUKAR, or Small Retailer Transformation Programme, is part of an entry point project (EPP)
under the Economic Transformation Programme (ETP) introduced by Prime Minister Najib Tun Razak.
The intention of the design of this project is to modernise and enhance the competitiveness of traditional retail
stores, or what is commonly known as kedai runcit (sundry shops).
Traditional sundry shops have been asked to change the way they conduct business under the
transformation of the grocery stores programme (Tukar) to win the hearts of young consumers. Ministry
of Domestic Trade, Cooperatives and Consumerism Deputy Minister Datuk Tan Lian Hoe said younger
consumers nowadays were reluctant to do grocery shopping at sundry shops.
Hence, with the help of TUKAR in changing the image of Malaysia sundry shops, many sundry
and grocery shops have benefited in:
Competitiveness and efficient management improvement
Case Study: U & I Easymart owner Murali Krishna
The adoption of modern technology and efficient management helps Murali increase his competitiveness. His shop
looked dull, without sufficient lighting, and his suppliers refused to supply goods because they were not paid promptly.
With the help of the program persuaded by his friends, Murali noted that his shop was totally revamped and
transformed from a dimly-lit sundry store to an attractive and brightly-lit retail outlet.
Increase in revenue
Case study: Jessica Wong, a 42-year-old single mother who manages a sundry shop in Bandar Bukit
Puchong. In April 2011, she decided to join the pioneer programme and within weeks, saw her weekly
revenue increase from RM20,000 to RM29,000. The shop was transformed from a dimly-lit sundry store
to an attractive and brightly-lit retail outlet. Besides that, she also received advice on improving
efficiency of the shop by changing its layout and operating systems, preparing plan programs and
revamping the management of stocks in the store.
Ideas in transform store
Case study: Pappathy Provision Store
Pappathy has operated her sundry shop for more than 30 years, however she was still unsure how to draw more
customers to her dull store, which lacked lighting and displayed products that were outdated. TUKAR team who
visited her grocery store and made sure the store was completely renovated, and offered her some ideas on proper
management.
In conclusion, with the help of the TUKAR program, most of the sundry shops in
Malaysia are hopefully successfully in changing their image and increase the competitive. The
coming objective of the TUKAR program is to see 5,000 outlets transformed and modernized
throughout the country by 2020.

3.0 RESEARCH METHODOLOGY
3.1 INTRODUCTION
This section discusses the methodology of the research. The main purpose of the research is to
investigate the reasons for decline of grocery shop business in Taman Universiti, Skudai and suggest
recommendations to improve these businesses. To assess and evaluate the weaknesses and strength of
grocery shops among the locals, 50 random locals around Taman Universiti were chosen to represent
the opinion of the general population in Taman Universiti. Data for the research were collected through
questionnaire, interview and observation.
3.2 RESPONDENTS OF THE STUDY
The respondents of the study were randomly chosen locals in Taman Universiti. In April 2013, a total of
50 questionnaires were distributed to locals at different shops, restaurants and grocery shops in Taman
Universiti. All of the 50 questionnaires were returned to the researchers. Of these numbers, ___ were
male whereas the rest (___) were female. Six locals and grocery shop owners were selected to provide
in-depths information about the topic through interview section.
3.3 RESEARCH INSTRUMENTS USED
This research utilized both the qualitative and quantitative research methodology. The instruments used
to collect the data were questionnaire, interview and observation. A set of questionnaire containing 20
questions divided into 3 sections was developed based on a questionnaire used previously by another
study ( State Government of Jersey). Different question-types, such as ranking, yes-no, and scales were
used in the questionnaire. the different sections of the questionnaire were: i) demographic information,
ii) shopping preference, iii) and recommendations. The questionnaire was piloted to a group of 10 locals
to assess its validity before it was distributed.
The qualitative data for the research came from observation and interview. Observation was used to
obtain the types of customers frequenting the grocery shops and the purpose for their visit. An
observation sheet (Appendix ) was developed.
Another method used was interview to confirm the findings from the questionnaire and to triangulate
the data collection methods. Six respondents were involved in the interview. Ten questions were
prepared after general consultation with several business owners in the topic area (Appendix ). The
interviews further explored the current situation of the business and the future prospects of grocery
shop in Taman Universiti.
3.3 RESEARCH PROCEDURE
Before the actual data collection period, a pilot study was conducted to assess the validity of the
research instrument. A total of 10 members of the public were involved in the pilot study chosen at
random at various areas in Taman Universiti.
During the actual study, the questionnaires were distributed at various locations in Tman Universiti,
such as hawker centers, shops, grocery shops and restaurants. Respondents were approached with the
initial question of whether they frequent a grocery shop nearby, before the purpose of the
questionnaire was explained in detail to them. The respondents were given the choice to participate in
the study before the questionnaire was given to them. Six locals were selected from those who
completed and returned the questionnaire to stay on for a brief interview with the researchers. The
interview were kept brief considering the time constraint of the respondents involved. The interview
was to find out the public opinion on the grocery shop business and its future prospects in Taman
Universiti.

3.4 DATA ANALYSIS
To analyse the data, a total of 3 variables were taken into consideration namely personal preference,
areas for improvement and public's perception on the importance of grocery shops. Data were entered
into the computer using Excel software. Results were presented through frequency counts and other
descriptive statistics. Interview data provided a way to validate and present in-depth view into the
research topic. The analysis of the interview data went through the coding technique using identification
of categories of patterns and preference that emerged from the analysis. The field-notes from the
observation were transcribed, and data from the observation sheet were analysed and tabulated in
tables.