EFFECT OF DIGITAL INVENTORY MANAGEMENT STRATEGY ON PERFORMANCE OF NAIVAS SUPERMARKETS IN NAIROBI CITY COUNTY, KENYA

Purpose of Study: The study examined the effect of digital inventory management strategy on the performance of Naivas Supermarkets in Nairobi City County, Kenya. It sought to establish how adoption of digital inventory systems influences operational efficiency, stock control, and overall supermarket performance amid increasing challenges facing Kenya’s retail supermarket sector today. Methodology: The study adopted a descriptive research design guided by Inventory Management Theory. A stratified random sampling technique selected 100 respondents from 326 employees, with 92 participating. Primary data were collected using structured questionnaires and analyzed using descriptive statistics, Pearson correlation analysis, and simple linear regression techniques for interpretation purposes. Findings: The findings revealed that digital inventory management practices were highly adopted within Naivas Supermarkets, recording an overall mean score of 4.23 and standard deviation of 0.77. Supermarket performance recorded a mean score of 3.09 and standard deviation of 1.91, indicating moderate performance outcomes despite digitization efforts. Correlation and regression analysis established a statistically significant positive relationship between digital inventory management and supermarket performance. The regression coefficient was β = 0.324 with a significance value of p = 0.000. Conclusion: The study concluded that digital inventory management significantly influences the performance of Naivas Supermarkets. Investment in integrated digital inventory systems, real-time analytics, automated stock control mechanisms, and employee capacity building can improve operational efficiency, minimize stockouts, optimize inventory levels, and strengthen the overall performance and competitiveness of supermarkets.