Dean, College of Business and Economics, Aksum University, Aksum, Ethiopia
Online published on 8 August, 2018.
In the present global world, Ethiopia retailing is viewing a paradigm shift from traditional structure to a modern organized retailing sector. Ethiopia, according to the (UNECA) United Nations Economic Commission for Africa Index, stood at 10th place in retail sector. A.T. Kearney's (prepared by African retail development index) index says Up to 85% of Ethiopian consumers live in rural areas and they captured more than 90% of retail market but some cities in ‘Ethiopia growing fast and giving equal competition to the global market Example: Addis Ababa, Adama, Mekelle, Hawasa, and diredawa etc., Addis Ababa now has more than 760 supermarkets, 1000 minimarkets and 18, 000 kiosks (most family-owned) and few hyper markets and 1 big shopping mall. Moreover, global consumer goods producing companies have started investing in Ethiopia: Heineken has invested 160 million dollars in brewery investments. Now the basic problems are how city consumers support to the organized retail sector? Their income levels and spending capacities are really suitable to sustain organized retail market? How their behavior change if big retailers like Wal-Mart Stores entered in Addis Ababa? For solving these problems, researcher study “Consumer behavior based on income levels in Addis Ababa” it helps to the retailers those who want to establish big shopping malls. For bringing clear picture, researcher conducted sample survey in Addis Ababa with 326 respondents by applying quantitative research technique. Primary Data information collected from the consumers in various shopping malls, super markets and kiosks etc. Secondary information collected from different publications, books, Internet sources and government authorities.
Consumer, organized retail sector, Consumer income, Addis Ababa