The adaptation of retail stores from 2018 to 2022 in response to consumer behavior : a case study of standalone stores and food trucks in the food and beverage industry
Abstract:
In daily life, elements like housing, sources of income, public utilities, and services are all vital components for survival. Before the year 2018, the traditional way of life usually involved the consumer seeking out the service provider. However, with the onset and spread of the COVID-19 virus starting in late 2019 and increasing continuously in 2020, the government issued a halt on various activities within the country. This included closing malls, markets, community gatherings, and inter-provincial travel. This directly impacted stores in the food and beverage industry, which could not operate as they used to. From the adaptation of retail store operators observed between 2021 and 2022, it was found that many businesses adjusted their store formats to diversify their distribution channels and reach various consumer groups. Traditional stores that rented spaces inside malls transformed into standalone stores, or in some cases, food trucks. These mobile stores represented a shift in service delivery, where service providers now come to consumers. This study divided the data collection for both standalone stores and mobile stores into three parts: 1) physical characteristics and management of the stores ; 2) consumer behavior ; and 3) factors and reasons behind the entrepreneurs' decisions. From the study's results, it was discovered that traditional stores placed importance on customer service areas that corresponded with locations with high potential. These locations had a large and diverse influx of people, which differed from stores that had adapted to approach consumer groups, both in community areas and on main travel routes, aiming to provide services close to residential areas. Further analysis indicated that the size of the store impacted the service format, number of employees, and operating hours for each type of shop, as well as public utilities and services in the vicinity. The types of products offered depended on the constraints of the store's available space. Consumer behavior differed on weekdays and weekends based on the store's location, the distance to the store, and the time required to access the service. As for entrepreneurs, they decided to adjust the use of the original store space to maximize its efficiency, expand into new business models, reduce costs for increased flexibility, and accommodate delivery services to reach a larger consumer group. This decision was a response to the growth in consumer numbers that resulted from changes in consumer behavior over the previous period. The research findings reveal that the utilization of Geographic Information System (GIS) data helps in understanding the characteristics of a location, including accessing the precise positioning of stores. This aids business owners in leveraging these insights to their advantage. Simultaneously, the study specifically focuses on the physical and behavioral aspects of consumers. If individuals are interested, they may delve deeper into additional investment opportunities in the retail business sector to guide decision-making and reduce investment risks more effectively.