ASSESSMENT OF ETHIOPIAN CASH AND CARRY WHOLESALE ENTERPRISE’S (ALLE BEJIMLA’S) EFFECT ON FOOD AND FAST MOVING CONSUMER GOODS MARKET IN ETHIOPIA

Abstract

The main purpose of this study was to assess the effect of the newly established Ethiopian modern cash and carry wholesale business enterprise (ALLE BEJIMLA) on food and FMCG market in Ethiopia. The researcher used descriptive research design to describe the existing circumstances of the effect of ALLE on the market (on its competitors, suppliers, customers, supplies, market shares, price and consumers (end users) satisfaction in the market as it is. To achieve the study objectives, the researcher also used both quantitative and qualitative research approaches. Besides, the researcher used both probability sampling techniques the so called stratified random sampling techniques and non-probability sampling techniques the so called judgmental or purposive sampling techniques as per of their requirements. Accordingly, the researcher gathered data from ALLE BEJIMLA Employees, ALLE BEJIMLA Customers (Consumers Associations, executive supermarkets, minimarkets, HoReCa, Independent shops and institutions), ALLE Competitors, suppliers, End users and from another organizations as per of the data required. Thus, ALLE BEJIMLA has 352 of total employees, 13004 of customers [including 323 of ALLE employees but excluding 29 of ALLE employees who were not ALLE customers)]; 106 (30 foreign suppliers and 76 local suppliers) of suppliers, 10 big competitor(s) which the researcher used as a population. Accordingly, the researcher used 10 % (35) of respondents from all ALLE employees emphasizing on managers, supervisors and specialists excluding guards, cleaners, trolley operators and daily laborers; 1.83% (232 out of 12,681 excluding ALLE employee) of respondents from all ALLE’s customers; specifically: [6% (20) from consumer associations, 1.5% (55) from HoReCa, 1% (60) from independent, 1.5% (30) from exclusive retailer, 10% (16) from minimarket, 12% (10) from supermarket, 11% (5) from shops, 10% (36) from institutions). Moreover, the researcher used 50% (5) from large competitors of ALLE BEJIMLA, 100 from end users and 20% (15) of local suppliers as respondents. Totally, the researcher distributed questionnaires to 387 respondents (taken as a sample size for the study). But, data was collected from 31 ALLE employees, 219 ALLE customers, 13 suppliers, 5 competitors and 93 end users. Totally 361 (93%) respondents were returned questionnaires. So, the study utilized primary and secondary data. The whole analysis of the paper was analyzed by SPSS 20 version. So, as of the finding, ALLE doesn’t bring significant contributions on food and FMCG market in Ethiopia as much as expectations rather than a little bit effects and psychological impacts on stabilizing food and FMCG (price, product availability, market share in the market) and has negative and little bit positive impacts on its competitors even though its negative impact was higher than positive impact and also, it doesn’t satisfy its customers, end users while some of its suppliers were also dissatisfied. Based on the findings, necessary conclusion and recommendations were given. The recommendations given includes the government financial support, high product assortment, cash purchase, ALLE suppliers and customer’s satisfaction, competitor’s attitudinal change would be required for ALLE.