Abstract:
The number of supermarkets has been rapidly growing in Sri Lanka during the recent
past. This study attempts to identify determinants of such growth. There are four main
objectives of this paper, namely (i) to understand the factors which are considered in
establishing the supermarket outlets;(ii) to understand the factors which determine their
growth; (iii) to understand how supermarkets can increase profits by minimizing social
and economic externalities; and (iv) to understand how consumers can be better off by
using supermarkets. In order to achieve these objectives, this study present SWOT of
supermarkets, analyzing the growing trends of supermarkets, socio-economic
characteristics, family consumption patterns and income and expenditure patterns of
supermarket shoppers. This study utilized both published and unpublished macro and
micro level data. The primary data was obtained by means of conducting in-depth
interviews and two surveys. Secondary data was collected from the survey findings
published by the Central Bank of Sri Lanka. According to the facts established by means
of analysing the data collected, a strong relationship was found between the two
variables, growth of supermarkets and the emerging consumer behaviour patterns in Sri
Lanka. Further, the study revealed a clear change of the patterns of consumer behaviour
associated with the expansion of supermarkets. Finally, interdependent relationship
between the growth of supermarkets and emerging patterns of consumer behaviour was
identified in the context of urban Sri Lanka.
