The study on the effect of existence and opening of the hypermarket towards local retailers in Kota Bharu, Kelantan / Siti Haziqah Sitas

Malaysia's retail industry is one industry that is rapidly growing. The existence of large supermarkets has gained a place in the hearts of the consumers. Overwhelming response from local customers encourage more foreign investors to build more large supermarkets in this country. Thus, competition in the retail industry will also be increased. Hence it causes indirect impact on the local retailers. Therefore, this study was undertaken to determine the effect of existence and opening of the hypermarket towards local retailers in Kota Bharu, Kelantan. Questionnaires were used as a method of data collection and distributed to 100 respondents consisting of local retailer nearby the hypermarket in Kota Bharu, Kelantan. The data were analyzed using the software Statistical Packages For Social Science (SPSS) 16.0. The findings indicate that opening hypermarket gives modest impact to respondents business. This indicates that most respondents feel that their business is not so threatened economically by the hypermarkets. Similarly, in terms of psychological and skills, it turns out the hypermarkets actually affect the mental, physical and retailers attitude. Majority of the respondents agreed that hypermarkets have a better and systematic management system and this is one of the factors that contribute to the success of hypermarkets in dominating the local retail industry. In conclusion, the hypermarkets have an impact on the average level against local retailers economically, psychologically and skills.