Global Journal of Management and Business Research, C: Finance, Volume 22 Issue 5

Table 1: Chi-Square Test Results Economic Order Quantity technique Just–in–time technique ABC Analysis tool Bar Coding Tool Inventory Software tool Chi-Square 22.533*** 26.133*** 2.133 22.533*** 22.533*** df 1 1 1 1 1 P-value 0.000 0.000 0.144 0.000 0.000 *** denotes that Chi-square is significant at a 99% confidence level. Source: Authors Compilation Similarly, barcoding and inventory software tools adopted by these retail stores were also found to be significant as they produce a Chi-Square value of 22.533for both tools. However, the ABC analysis tool appears to be statistically insignificant depicting no effectiveness in its adoption by the sampled retail stores. This is attributed to the fact that the tool is not popular amongst the majority of the sampled retail stores In short, the null hypothesis is rejected and the alternative hypothesis which states that inventory management techniques and tools adopted by retail stores are effective is accepted. These findings are similar to Fullerton, McWatters and Fawson (2003)s’ study of modern inventory technique adoption which supported that firms that implement a higher degree of modern tools and techniques outperform the industry. H o2 : The inventory management practice adopted does not influence the effectiveness of retail stores. The Chi-square computation represented in Table 2 shows that the various variables used to measure retail store effectiveness are significant and the adopted inventory management practices have a significant influence on the retail store. Service delivery was well improved, this is demonstrated by a Chi- square value of 6.533 significant at 0.011 p< 0.05. Further, stock availability, outperforming competitors, increase in sales, reduction in customer loss, reduction in operational cost, increase in return on investment, reduction in stock out and overstocking are also significant with p-value < 0.05. Table 2: Chi-Square Test Results S/N Statement Chi-Square Value df P Value Decision 1 The practice improves the quality of service delivery. 6.533** 1 0.011 Significant 2 The practice increases the availability of stocks that meet customers’ needs and specifications at the right time. 10.800*** 1 0.001 Significant 3 The inventory practice resulted in the business outperforming its competitors. 4.533** 1 0.015 Significant 4 The inventory practice increased sales and turnover. 5.333** 1 0.018 Significant 5 The inventory practice has reduced the loss of customers. 13.333*** 1 0.000 Significant 6 The inventory practice has reduced operational costs. 30.200*** 2 0.000 Significant 7 The inventory practice has enhanced the return on investment. 15.800*** 2 0.000 Significant 8 The inventory practice has reduced stock-out levels. 5.333** 1 0.018 Significant 9 The inventory practice has reduced overstocking. 3.133** 1 0.044 Significant 10 The inventory practice has reduced wastages through stock obsolescence. 1.467 3 0.190 Insignificant ***, ** denotes that Chi-square is significant at 99 and 95% confidence levels. Source: Authors Compilation Conversely, reduction in wastage through obsolescence reported a Chi-square value of 1.467with p-value of 0.190> 0.05 which was a result of other factors that do not apply to most sampled retail stores. For instance, factors that arise from stores that do not deal in perishable stock are presented in Table 2. This indicates that the adoptions of these inventory management practices are significantly impactful on the 5 Global Journal of Management and Business Research Volume XXII Issue V Version I Year 2022 ( ) C © 2022 Global Journals Analysis of the Impact of Inventory Management Practices on the Effectiveness of Retail Stores in South Africa