Emphatic Store Formats- A Behavioral Study of Consumer Packaged Goods Market in South Africa

The South African market is in search of an effective retail format that attracts customers and invokes
a positive consumer behaviour. In an era of fourth industrial revolution, where retailers around the
globe are manoeuvring with latest technologies like Artificial Intelligence and Robotics to help develop
more successful retail store formats to invoke positive consumer responses, little evidence exists of
empirical research, that explores the success of a selective store format in the South African
Consumer Packaged Goods (CPGs) market or Fast Moving Consumer Goods (FMCGs) market.
Retail store formats are required to be aligned with the changing customer taste and preferences, and
the trends in the industry to be effective. The portfolio of retail store formats available and selected
may have a huge impact on the investment and consumer behaviour.
This research paper explores the impact of retail store formats decision on the consumer buyer
behaviour in the Consumer Packaged Goods (CPGs) industry by surveying a randomly selected
sample of 96 respondents of consumers in the Sandton area of Johannesburg, South Africa. It
became apparent through the survey results that the respondents are aware of the alternative retail
formats, which increases their probability as customers of Consumer Packaged Goods to visit and
buy from a store of their choice. It is established through empirical research that Hypermarkets
followed by Convenience Stores and Super Markets are the most preferred retail stores by the
customers of CPGs whereas Independent Retail Store has an insignificant impact on the customers.
As a consequence the leaders and management of the retail stores in South Africa need to study and
analyse the most preferred and successful retail store formats. The retailers in CPGs industry can
accordingly decide to focus on the retail store formats that have shown a significant impact on the
consumer behaviour. However, the retail industry is very dynamic and the effect of fourth industrial
revolution has to be analysed further to enhance the customer retail experience and positively
influence their buying behaviour.