Sales and Performance Discrepancies between Physical and
Online Fashion Retailers
In Partial Fulfillment
of the Requirements in Research Project
ABOROT, Joseph Emmanuel B.
CASIN, Francine Jan A.
DELA CRUZ, Kurt Patrick R.
LORIEGA, Xanshine E.
PEPITO, Bellie Joe L.
VILLON, Gabriel Ivan D.
Rebecca G. Santos
Research Adviser
Palawan National School
Senior High School
May 2023
Abstract
This quantitative research study was conducted to explore the sales and
performance discrepancies between physical and online fashion retailers. The fashion
industry has undergone significant changes in recent years due to the rise of e-commerce
and online shopping. As a result, there has been a growing debate about the effectiveness
of physical stores versus online platforms in terms of sales and overall performance. This
abstract provides an overview of some factors that contribute to the differences in sales
and performance between physical and online fashion retailers, which are gross monthly
sales, expenditures, customer reach, and customer retention. Ultimately, this abstract
highlights the importance of understanding the key differences between physical and
online fashion retailing and leveraging them to create a competitive advantage in the
industry. This study presents an analysis of data collected from a variety of online and
physical fashion retail shops in Puerto Princesa City. This research uses Purposive
Sampling as its sampling technique and uses semi-structured interview questions as its
research instrument to gather all the data needed. By examining the gathered information
and analyzing the results, the researchers reached a conclusive finding: there exists a
notable disparity in sales and performance between online and physical fashion retailers.
This conclusion sheds light on the contrasting dynamics of these two retail channels
within the local fashion market, highlighting the need for further exploration and tailored
strategies to address the unique challenges and opportunities faced by each retail format.
Acknowledgement
1
The researchers deeply extend their gratitude and thanks to all groups and
individuals who have supported and helped them in completing this research study. The
researchers wholeheartedly appreciate their unending support and great efforts.
To Dr. Dennis M. Lucas, our school principal, for allowing the researchers to
conduct the study.
To Mrs. Rebecca G. Santos, our Research adviser, for valuable feedback and
critiques, and for guiding and motivating the researchers during the conduct of the study.
To Mrs. Shiela M. Caab, our class adviser, for giving such encouragement and
words of motivation to the researchers, and for being extremely helpful throughout the
course of making the paper.
To Ms. Menalyn Madriñan, our previous Research teacher, for giving the
researchers the introductory lessons regarding the subject.
To the respondents, for their effort to participate and become one of the
respondents in this study.
To all the authors and publishers of the articles and related studies, for providing
valuable information and references and insights to the researchers.
To our family, friends, and classmates, for their unending support and emotional
encouragement.
Above all to our God Almighty, the source of all wisdom and skills.
DEDICATION
2
The research study is sincerely dedicated to our family, friends, colleagues,
students, the government, and to the local people of Puerto Princesa City.
Table of Contents
Introduction …………………………………………………………………………
6
3
Statement of the Problem ………………………………………………...
9
Hypothesis ………………………………………………………………….
10
Objectives …………………………………………………………………..
10
Significance of the Study ………………………………………………….
11
Scope and Delimitation …………………………………………………...
11
Review of Related Literature …………………………………………………….
11
Definition of Terms …………………………………………………………
Methodology ………………………………………………………………………
19
21
Research Design and Choice of Approach ……………………………..
21
Research Instrument ……………………………………………………..
21
Sample and Population …………………………………………………..
21
Research Procedure ……………………………………………………...
22
Research Findings ………………………………………………………………..
23
Discussion …………………………………………………………………………
28
Summary of Findings …………………………………………………………….
34
Conclusion ………………………………………………………………………..
35
Recommendation …………………………………………………………………
36
References ………………………………………………………………………..
37
Appendices ………………………………………………………………………..
42
Appendix A: Questionnaire ……………………………………………..
44
Permission Letter (School) ………………………………
45
Permission Letter (Respondents) …………………………
46
Appendix B: Evidences ……………………………………………………
47
4
Curriculum Vitae ………………………………………………………………...
51
5
CHAPTER I
Introduction
Background of the Study
Fashion has been undeniably rapidly growing over the past few years. More and
more people are now being exposed to various fashion trends all over the world due to
the constant digitalization of the fashion industry. Many people nowadays stress out on
what they will wear for the day. Whether they will go to formal events, malls, or even just
a quick stroll in a local park, everybody wants to look neat and trendy with their own
fashion tastes. As per Chayson (2019), fashion is a way of life and one of the most
essential elements of life. To keep up with the trend and high demand of fashion clothing,
businessmen saw this opportunity to start a business in the fashion retail industry
resulting in the fast emergence of various fashion retail stores and fashion resellers. Thus,
many fashionable clothing are now easily accessible and obtainable indicating that
achieving people’s day to day fashion goals are now possible.
In the current century, globalization and digitalization have been evident. With the
changes that the Covid-19 Pandemic have done to the world, people had to rely mostly
on the internet and technology to continue their normal lives. Various fields such as the
fields of education, healthcare, and of course business, had to switch their operations
online. Many businesses had to adapt to the “new normal”. Some of these businesses
include various fashion retailers. In order to continue their operations, these fashion retail
stores had to switch to selling online in order to adapt to these unanticipated changes to
serve and meet the demands of the customers. Now that numerous physical fashion
6
retailers are going back to their normal operations, there are still plenty of fashion retailers
who prefer to operate digitally.
Various types of clothing are now available to everyone due to the abundance of
different fashion retailers whether it may be physical or online. Due to this, when buying
clothes, customers now have to think whether to buy from a physical-fashion retail store
or an online-fashion retail store. Both online and conventional fashion retailers are
available to satisfy one’s shopping needs. With abundant options available to customers,
businesses are now faced with severe difficulty in determining how to target customers
best in order to maintain a competitive edge over fellow competitors.
Making purchases online, particularly for fashion products, has practically been a
standard practice in the industrialized nations such as the United Kingdom, Germany,
and the United States (Sarkar and Das, 2017). But in a growing nation like the Philippines,
the majority of the people still rely quite heavily on physical stores to buy goods in a variety
of categories. Although online shopping has gained popularity over the past several
years, especially among teenagers and young adults, in terms of sheer volume, offline
brick and mortar shopping still outpaces its online counterpart.
Whether it be an online or an online enterprise, it is only natural for a business to
learn and analyze different consumer behaviors since it is a crucial factor in determining
a business’ success. The market is driven by the customer demands. The interests of the
customer are taken into consideration in all business operations. Online shopping, a
relatively new phenomenon in the Philippines, has gained popularity in recent years
thanks to rising internet usage, leaving consumers with a myriad of options. The ability of
7
the consumers to access comparable types of products in accordance with their
preferences, perceived risk, and methods for gathering product information are some of
the key differences between the two shopping methods.
Both online and physical fashion retailers have their own pros and cons and are
unique to both the businessman and the consumer. This study aims to gather more data
and information to better differentiate online and physical fashion retailer stores’ overall
sales and performance in the researcher’s locality, Puerto Princesa City, Palawan.
8
Statement of the Problem
In the locality of Puerto Princesa City, there is a significant lack, if not a complete
absence, of statistical data and information, about the effectiveness and feasibility of
physical-only and online-only fashion retailers given the economic climate and shopping
trends. The researchers seek to identify the businesses’ sales and overall performance.
Specifically, the following:
1. Is there a difference between physical only and online fashion retailers in terms
of:
a. Sales Performance, and
b. Audience Reach?
2. Is there a similarity between physical and online fashion retailers in terms of
expenditures?
3. Is there a dissimilarity between physical and online fashion retailers in terms of
customer retention?
4. Is there a significant difference in the sales and performance between physical
and online fashion retailers?
9
Hypothesis
Ho: There is no significant difference between the sales and performance of
physical and online fashion retailers.
Ha: There is a significant difference between the sales and performance of
physical and online fashion retailers.
Objectives
The study entitled "Sales and Performance Discrepancies Between Physical and
Online Store Fashion Retailers" specifically aims to:
1.) Identify the similarities between physical and online fashion retailers’ sales
performance and audience reach.
2.) Identify the profitability of physical and online fashion retailers.
3.) Identify the similarities in expenditures and investing activities between
physical and online fashion retailers.
4.) Determine the customer retention between physical and online fashion
retailers..
5.) Determine the significant difference in the sales and performance between
physical and online fashion retailers.
10
Significance of the Study
This study aims to determine the difference in sales and performance between
physical and online fashion retailers. This will be of assistance in providing data for other
researchers who aspire to explore this specific topic. This research will serve as a basis
for aspiring fashion retailers, aiding them in deciding whether to invest in a physical store
or pursue their ambitions solely through online retail. This may also serve as a foundation
for drafting new legislation and the establishment of more businesses, especially local,
friendly regulations.
Scope and Delimitation
The main goal of the study entitled "Sales and Performance Discrepancies
Between Physical and Online Store Fashion Retailers" is to determine the significant
difference in sales, profitability, feasibility, and overall performance between online and
physical store fashion retailers. This study will only accommodate 10 total respondents.
5 of which are physical store fashion retailers and 5 other online store fashion retailers.
This study will only be conducted within the vicinity of Puerto Princesa City, Palawan. This
study will be conducted in October of 2022 until early February of 2023.
11
CHAPTER II
Review of Related Literature
Seeing that this study converses about the sales and overall performance of
fashion retailers, it is necessary to have prior knowledge and information about the
studies, concepts, and ideas associated with it.
RELATIONSHIPS OF ONLINE AND PHYSICAL STORES
Technology application and innovation is not new in the industry of fashion
(Dopson and Orendorff, 2022). In a study by Jimenez D., et al., entitled “Popularity
Comparison between E-commerce and Traditional Retail Business”, it was found that the
majority of the consumers are leaning more into shopping through online retail stores due
to the convenience it provides. (2019)
Younger generations are said to be more involved with the internet thus making
them more knowledgeable due to various information provided by the internet. With the
help of social media, e-commerce can further improve their business and operations by
using advertisements and promotional videos. With this, we can state that social media
and ecommerce are strongly correlated (Jimenez, D., et.al. 2019)
According to the database of Statista, since the year 2014, online purchases have
been steadily increasing and e-retail revenues are expected to increase from 1.3 trillion
to 8.1 trillion US dollars in 2026. (2022)
A thesis entitled “Online VS. Offline shopping, impact of Covid-19 on the
digitalization process in Austria '' attempts to determine Covid-19's impact on the retail
12
business, the process of digitalization and how it influences customers' choice to
purchase online vs offline. The information gathered shows that Covid-19 had a
significant influence on participants' online buying behavior. Most individuals mentioned
a marked rise in their frequency of shopping since the Covid-19 outbreak. Additionally,
the data indicates important motivational elements that lead people to purchase online as
opposed to offline. Convenience seems to be the main driving force behind internet
shopping. The data also includes elements influencing the choice to shop in physical
stores, such assessing the desired goods physically. (Matz, 2021)
An article by Susan Ward (2022) titled “Brick and Mortar Stores vs Online Retail
Stores” states that despite the continuous rapid growth of e-commerce shopping, plenty
of customers still choose the in-store shopping experience where they can physically
examine their desired product before purchasing. Moreover, according to the statistics of
the U.S. Department of Commerce, total sales of online retail stores have risen from
11.3% in 2019 to 14$% in late 2020.
Clark (2020) stated in his article comparing the benefits of physical and online
retails, that physical stores produce more sales due to its mastery in the art of selling.
Unlike online retails, physical stores have the ability to guide their clients to the product
they’re selling and customers have the opportunity to examine the product they are
eyeing.
13
“Online Marketing of Small and Medium Enterprises in Samar, Philippines”, a
research about local and physical stores in Samar, Philippines adapting online marketing
despite the uncertainties and problems identified in the study. The study concluded that
stores in Samar are willing to adapt to online marketing strategies and there is a demand
in that. (Patimo & Dollado, 2021)
A study from China entitled “The interaction between e-shopping and store
shopping: empirical evidence from Nanjing, China” examines the connections between
in-store shopping, online shopping, and online searching by employing structural equation
modeling on data gathered from adult Internet users in Nanjing. The findings indicate that
there is a positive correlation between online and in-store shopping; however, the effect
shifts from the latter to the former. Both online and in-store shopping are positively
impacted by online searching. According to these findings, store shopping is favored by
e-shopping as an information channel. (Xi et al., 2018)
Boundaries and lack of communication. The study shows that the buyers prioritize
5 significant considerations. First, choosing the right product, in which through physical
retail, the customer is able to verify and quality check the product before purchase.
Secondly, safety and security, which physical retail can provide positively. Whereas
online shopping may be prone to hacking or error in purchase. Third, convenience, this
is how online shopping’s burst of sales were generated. From the hours of walking in
looking at the physical store, with one click, or a scroll of a finger can provide the utmost
convenience in online shopping. Fourth, level of communication, the physical retailers are
able to perform face-to-face communication whereas online communication has a
tendency of delays. Lastly, a variety of products, you do not need to go shelf to shelf to
14
compare prices and roam your eyes. In online shopping, you can view as much while
laying down. As stated it is not a problem to some business owners as you can generate
income from both. (Mc Sanchez, 2022)
Physical retail isn’t dying. It’s just changing and adapting. That is why there are
now numerous online retailers. By online retailing the sellers have a higher chance to
reach a wider audience. Yet physical retail is much more encouraged when the business
aims to give the consumers a personalized experience. Performing both online and
physical service creates an extension task for the business with both benefits and cons.
By considering the convenience, choices, and experiences for the consumers, the
retailers can achieve a significantly higher sale. (David Luther, 2022)
BUSINESSES DURING THE COVID-19 PANDEMIC
The world has experienced many natural disasters, whether it may be natural or
manmade, and we have always managed to get back up. But Covid-19 is a special case.
It has tremendously damaged and changed the world, especially the global economy.
(Sharma, et al., 2020)
A study labeled “Reimagining the Fashion Retail Industry Through the Implications
of COVID-19 in the Gulf Cooperation Council (GCC) Countries”. It is stated in this study
that it will look into developing a digitalized blueprint, using cloud technologies and big
data analytics, and some other more future strategies for fashion retailers. It is concluded
that fashion retailers should keep a close look-out on developments that emerged during
the COVID-19 pandemic in the stated region. The researchers also noted that retailers
should incorporate such elements to survive in the business industry. (Vihari, et al. 2021)
15
There is a significant impact of the fashion industry in our economy. Fashion
industries are made up of thousands of companies, yet these industries are not perfect.
Since fashion is so complex, it is difficult to go in depth which is why the area is quite
complicated. The vast area of the fashion industry creates an opportunity for people as
there are numerous jobs in fashion. Fashion is now part of society, deeming it as one of
the anomalies. Addressing the issues on the topic of fashion is beneficial and necessary.
The start of the pandemic caused the downfall of several retailers which encouraged them
to start an online shop. (Anna Swatski, 2021)
Due to lockdown and safety precautions, people enjoyed favorable online
purchasing experiences and benefited from them during COVID-19. Somewhere, Covid19 encouraged consumers to purchase online and drove the expansion of online retail
businesses. As a way to increase the security of goods purchases, online shopping
gained increasing traction. Customers have become more inclined to buy online as a
result of this. (Siddiqui & Mehrotra, 2021)
IMPACT OF DIGITALIZATION TO BUSINESSES
A study from Romania entitled “From Traditional to Digital: A Study on Business
Models in the Context of Digitalization” aims to determine the impact of technology or
digitalization on several business models and to find the traditional manner of business
models’ strengths and weaknesses. The researchers of this study concluded that
businesses should try to adapt to the current technology and other related opportunities
since this can help the businesses’ overall performance exponentially according to their
findings. There are certain risks to both physical and digital businesses which can fully
depend on what type or kind of business to take (Fogoros et al. 2020).
16
CUSTOMER PERCEPTIONS TO ONLINE AND OFFLINE RETAIL STORES
Seeing that this study converses about the sales and overall performance of
fashion retailers, it is necessary to have prior knowledge and information about the
studies, concepts, and ideas associated with it.
A thesis named “Customers’ Perception on the Trustworthiness of Electronic
Commerce: A Qualitative Study” aims to find the customers’ evaluation when it comes to
online commerce or retail. It is said by the researchers that online retail is affected by the
customers’ perceptions but can be lessened by having these three themes; competence,
benevolence, and integrity. (Opalla, et al. 2019)
The element of physical presence and face-to-face interaction is still found
essential for most customers in their retail experience. Out of 3 customers, 2 of them state
that physical customer service makes them more likely to spend more and come back to
the store after having quality service from the in-store staff. (“6 Reasons Why Physical
Stores Are Still Essential for Retail”, 2021).
The customers have different buying behaviors which is an economic factor. The
study shows that there is a significant effect on fashion consciousness due to the
instrumental and terminal values. That is why the fashion consciousness affects the
buying behaviors and intentions of the customer. That is also a significant reason why
considering the difference in customer preferences is important. (Kautish & Sharma,
2018).
17
18
Definition of Terms
Discrepancies
Operational Definition - A lack of compatibility or similarity between two or more facts.
Conceptual Definition - An instance of disagreeing or being at variance.
Profitability
Operational Definition - The degree to which a business or activity yields profit or financial
gain.
Conceptual Definition - A measure of an organization’s profit relative to its expenses.
Feasibility
Operational Definition - The state or degree of being easily or conveniently done.
Conceptual Definition - Capable of being done or carried out.
Sales
Operational Definition - The exchange of a commodity for money; the action of selling
something.
Conceptual Definition - Transactions where money or value is exchanged for the
ownership of a good or entitlement to a service.
Performance
Operational Definition - The quality of execution of such an action, operation, or process.
Conceptual Definition - The ability of an organization to reach its goals and optimize
results.
Retailers
Operational Definition - A person or business that you purchase goods from.
19
Conceptual Definition - An entity that sells goods such as clothing, groceries, or cars
directly to consumers.
Retention
Operational Definition - The continued possession, use, or control of something.
Conceptual Definition - The ability to keep or continue having something.
Customer Retention
Operational Definition - Ability of a company or product to retain its customers over some
specified period.
Conceptual Definition - Company's ability to turn customers into repeat buyers.
20
CHAPTER III
Methodology
This chapter presents the research design and choice of approach, research
instrument, sample and population, used by the researcher and the procedures done in
fulfilling the study.
Research Design and Choice of Approach
The researchers used a quantitative approach as it is the best suited approach for
this study since the data that was gathered are numerical data and this study deals with
the discrepancies between sales and performance of physical and offline fashion
retailers.
Research Instrument
In conducting this study, the researchers gathered data through semi-structured
interview questions. The questions are structured based on the research problem
provided in Chapter 1.
Sample and Population
The target sample and population of this research study are 12 fashion retailers in
Puerto Princesa City. 6 of which are physical fashion retailers, and another 6 online
fashion retailers. The sampling strategy used in this study is purposive sampling. As per
the study criteria stated, the survey was conducted on employees directly under the
financial department of the business.
21
Research Procedure
The survey was carried out between February and March 2023.. The researchers
reached out to employees of physical and online businesses directly under the financial
department to collect their prospective responses. A letter permitting the researcher to
conduct surveys and gather data will be firstly secured. Draft writing of the interview
questions will follow. Google forms was the material to be used in making the final
questionnaire. The questionnaire includes a letter of consent at the first section of the
forms attached with the signed permission letter. The second section includes preliminary
questions, such as name, name of business owned, and business address. The questions
were constructed to gather data on the differences between physical and online fashion
retailers in terms of sales, audience reach, profitability, customer retention, similarities
between their expenditures, and if there is a significant difference in the sales and
performance between physical and online fashion retailers. The researchers sought out
various fashion retailers with a physical and online store through social media, specifically
facebook and messenger, and through personal interviews. The answers of the
participants were automatically recorded in Google Forms after the participants had
submitted their responses.
22
CHAPTER IV
Research Presentation, Interpretation, and Analysis of Data
The research findings reveal a significant relationship between the
independent and dependent variables. Certain contextual factors were found to moderate
the relationship. The study identifies areas for further investigation and highlights the need
for continued research on the topic.
Table 1
Monthly gross sales of physical and online fashion retailers in Puerto Princesa
City, Palawan.
Average Monthly Gross
Sales
Physical
Online
Frequency
Percentage
Frequency
Percentage
Below P15,000
0
0
2
33.32%
P15,001 - P20,000
2
33%
1
16.67%
P20,001 - P25,000
0
0
1
16.67%
P25,001 - P30,000
0
0
1
16.67%
Above P30,000
4
67%
1
16.67%
TOTAL
6
100%
6
100%
23
It can be seen in the table above that 67% of the physical fashion retailers have a
monthly gross sales of above P30,000 compared to online fashion retailers where only
one shop had a monthly gross sales of P30,000.
Table 2.
The monthly expenses of physical and online fashion retailers in Puerto Princesa
City, Palawan.
Average Monthly
Expenses
Physical
Online
Frequency
Percentage
Frequency
Percentage
Below P10,000
1
16.67%
3
50%
P10,001 - P15,000
0
0
2
33.33%
P15,001 - P20,000
0
0
0
0
P20,001 - P25,000
2
33.33%
0
0
Above P25,000
3
50%
1
16.67%
TOTAL
6
100%
6
100%
This table shows that the majority of physical fashion retailers’ average monthly
expenses is above P20,000 compared to the majority of online fashion retailers’ which is
below P15,000.
24
Table 3.
Expenses incurred by the physical and online fashion retailers in Puerto
Princesa City, Palawan.
Physical
Online
Type of Expenses
Frequency
Percentage
Frequency
Percentage
Marketing and
Advertising
3
15%
1
6.25%
Salaries
4
20%
2
12.5%
Packaging
1
5%
4
25%
Utilities
2
10%
3
18.75%
Telecommunications
2
10%
3
18.75%
Rent
5
25%
0
0
Delivery/Transportation
3
15%
3
18.75%
TOTAL
20
100%
16
100%
The table indicates that physical fashion retailers incur the highest expenditure on
rent, whereas packaging is the least expensive item. On the other hand, online fashion
retailers spend the most on packaging. None of the respondents from the online fashion
retailers group reported any rent expenditures.
25
Table 4.
Daily number of customer visits of physical and online fashion retailers in Puerto
Princesa City, Palawan.
Physical
Online
Daily Customer Visit
Frequency
Percentage
Frequency
Percentage
Less than 50 people
2
33.33%
4
66.66%
51 - 100 people
3
50%
1
16.67%
101 - 150 people
0
0
0
0
151 - 200 people
0
0
0
0
More than 200 people
1
16.67%
1
16.67%
TOTAL
6
100%
6
100%
The table shows that 50% of physical fashion retailers have 51-100 customers who
visit their store on a daily basis compared to the online fashion retailers where 66.66% of
the stores only have less than 50 customers who visit them daily.
26
Table 5.
Percentage of the perceived loyal customers by the physical and online fashion
retailers in Puerto Princesa City, Palawan.
Physical
Online
Percentage of Loyal
Customers
Frequency
Percentage
Frequency
Percentage
Less than 20%
0
0
1
16.67%
21% - 40%
1
16.67%
0
0
41% - 60%
2
33.33%
3
50%
61% - 80%
3
50%
2
33.33%
81% - 100%
0
0
0
0
TOTAL
6
100%
6
100%
It can be seen in the table that half of online fashion retailers consider 61% - 80%
of their customers as loyal while half of online fashion retailers consider 41% - 60% of
their customers as loyal customers.
27
Discussion
X → Average Monthly Gross Sales of Online Fashion Retailers
Y → Average Monthly Gross Sales of Physical Fashion Retailers
Fashion Retailers
X
Y
Shop 1
7500
17500.5
Shop 2
7500
17500.5
Shop 3
17500.5
32500
Shop 4
22500.5
32500
Shop 5
27500.5
32500
Shop 6
32500
32500
TOTAL
115001.5
165001
28
The computed P-value is 0.010820058 and the tabulated value is 2.570581836.
The researchers discovered that the computed value is less than the tabulated value.
Moreover, the data from the physical fashion retailer group presents a better result
compared to the online fashion retailer group since its mean has a greater value and
lower variance value. Between two variables, the variable with the greater mean and the
lower variance is better.
X → Average Daily Customer Visits of Online Fashion Retailers
Y → Average Daily Customer Visits of Physical Fashion Retailers
Fashion Retailers
X - online
Y - physical
Shop 1
25
25
Shop 2
25
25
Shop 3
25
75
Shop 4
25
75
Shop 5
75
75
Shop 6
225
225
29
TOTAL
400
500
The computed P-value is 0.174687814 and the tabulated value is 2.570581836.
The researchers analyzed that the computed value is less than the tabulated value. In
addition, the data from the physical fashion retailer group presents a better result in
contrast to the online fashion retailer group since its mean has a greater value and lower
variance value. Between two variables, the variable with the greater mean and the lower
variance is better.
X → Average Monthly Expenses of Online Fashion Retailers
Y → Average Monthly Expenses of Physical Fashion Retailers
Fashion Retailers
X - online
Y - physical
Shop 1
5000
5000
Shop 2
5000
22500.5
Shop 3
5000
22500.5
Shop 4
12500.5
27500.5
30
Shop 5
12500.5
27500.5
Shop 6
27500.5
27500.5
TOTAL
67501.5
132502.5
X → Expenditures of Online Fashion Retailers
Y → Expenditures of Physical Fashion Retailers
31
Expenses
Online Stores
Physical Stores
Marketing and
Advertising
1
3
Salaries
2
4
Packaging
4
1
Utilities
3
2
Telecommunications
3
2
Rent
0
5
Delivery/Transportation
3
3
Figure 1.0
The computed P-value is 0.025824006 and the tabulated value is 2.570581836.
The researchers found out that the computed value is less than the tabulated value.
32
Furthermore, Figure 1.0 shows the different expenses of both online and physical
fashion retailers in terms of their different expenditures. It can be observed that physical
fashion retailers have more expenses compared to online fashion retailers. It can also be
seen that rent expense has the highest count from physical fashion retailers in contrast
to online fashion retailers who do not allocate funds for rent.
X → Expenditures of Online Fashion Retailers
Y → Expenditures of Physical Fashion Retailers
33
Fashion Retailers Online Loyal Customers Physical Loyal Customers
Shop 1
10%
50%
Shop 2
50%
70%
Shop 3
50%
70%
Shop 4
50%
90%
Shop 5
70%
90%
Shop 6
70%
90%
Mean
50%
77%
Figure 2.0
As shown in Figure 2.0 above, it can be seen that physical fashion retailers have
a higher percentage of loyal customers compared to online fashion retailers.
34
CHAPTER V
This
chapter
presents
the
summary
of
findings,
conclusions,
and
recommendations drawn from the research findings in the conduct of this study and
recommendations formulated by the researcher.
Summary of Findings
Based on the data that the researchers have gathered from various online and
physical fashion retail stores in the locality of Puerto Princesa City, physical fashion
retailers have a higher monthly gross sales with 67% of the respondents earn above
P30,000.00, while the other 33% earns between P15,001.00 to P20,000.00. Meanwhile
33.33% of online fashion retailers earn a monthly gross sales of below P15,000.00 and
only 16.67% earn P30,000 above.
In terms of expenses, 50% of the physical fashion retailers spend at least
P25,000.00 on their expenses per month, 33.33% spend P20,001.00 to P25,000.00, and
the other 16.67% spends below P10,000.00. Meanwhile, 50% of the online fashion
retailers monthly expenses only cost below P10,000.00. However, 33.33% spends
P10,001.00 to P20,000.00 on monthly expenses and 16.67% spends above P25,000.00
The type of expenses in which the two groups incur and the researchers found out that
most of the expenses of online fashion retailers are for packaging, while physical fashion
retailers spend on rent expense the most. It is also important to note that online fashion
retailers do not incur any rent expense, as shown in table 3 and figure 2.2, that contributes
as to why physical fashion retailers have higher expenditures.
35
50% of the physical fashion retailers estimated that their daily customer count is
between 51-100 people, which is still a higher customer visit count compared to the
66.67% of the online fashion retailers estimation of less than 50 people visiting the shop
online. However, 33.33% of physical fashion retailers have a daily customer visit of less
than 50 people while 16.67% of the group has over 200 people daily. Meanwhile, 16.67
percent of the online fashion retailers have a daily customer visit of around 51 - 100
people, and the other 16.67% has more than 200 people daily.
Moreover, 50% of the physical fashion retailers identified that 61 - 80% of the
people who visit the retail shop are loyal customers, 33.33% identified 41% to 60% loyal
customers, and 16.67% found 21% to 40% loyal customers from the daily customer visit.
Meanwhile, 50% of the online fashion retailers identified 41 - 60% loyal customers from
their daily customer visit, 33.33% identified 61% to 80% loyal customers, and 16.67%
found less than 20% are loyal customers from the daily customer visit.
By incorporating the constructed T-tests and computed t-values and standard
deviation of sales, expense, and customer reach, with addition of the measure of central
tendency, the researchers observed a significant difference in various factors affecting
the sales and performance of physical and online fashion retailers.
Conclusion
Through conducting an analysis of the data gathered by the researchers from
various online and physical fashion retail shops in Puerto Princesa City and its results,
the researchers concluded that there is a significant difference in the sales and
performance between online and physical fashion retailers in Puerto Princesa City.
36
Recommendation
The following recommendations are offered based on the results gathered by the
researchers:
It is recommended that the research would have to gather more respondents and
observe more data to acquire more accurate results. It is also recommended to analyze
other factors of a business that correlates under the sales and performance of a company
to have a more objective comparison between the physical and online fashion retail store.
It is further recommended for the future researchers to conduct other types of businesses
aside from fashion retailers if it is wished to have a broader comparison of the online and
physical business world.
37
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42
Appendices
43
Appendix A
Questionnaire
1. Name of your business/company (optional)
2. Address of your business/company (optional)
3. Do you have an online or physical store?
a. Online Store
b. Physical Store
4. On average, how much are your monthly gross sales?
a. Below P15,000
b. P15,001 - P20,000
c. P20,001 - P25,000
d. P25,001 - P30,000
e. Above P30,000
5. On average, how much are your monthly expenses?
a. Below P10,000
b. P10,001 - P15,000
c. P15,001 - P20,000
d. P20,001 - P25,000
e. Above P25,000
44
6. What type of expenses does your fashion retail store incur? Check all that apply.
●
●
●
●
●
●
●
Marketing and Advertising
Salaries
Packaging
Utilities
Telecommunications
Rent
Delivery/Transportation
7. By your estimates, how many customers visit your store on a daily basis?
a. Less than 50 people
b. 51 - 100 people
c. 101 - 150 people
d. 151 - 200 people
e. More than 200 people
8. What percentage of those customers of yours would you identify as loyal customers?
a. Less than 20%
b. 21% - 40%
c. 41% - 60%
d. 61% - 80%
e. 81% - 100%
45
Permission Letter (School)
46
Permission Letter (Respondents)
Greetings!
The student researchers from Grade 12 Block 1 of Accountancy, Business, and
Management (ABM) of Palawan National School. The researchers are currently
conducting a study entitled "Sales and Performance Discrepancies of Physical and
Online Fashion Retailers" for compliance in our Research Project 3 subject.
Considering this, the researchers have prepared a survey questionnaire that will
help the researchers determine the differences and similarities of selected online and
physical fashion retail stores in Puerto Princesa City, eventually making it probable to
finish this research study. Queries about monthly sales and expenses may be asked
in the questionnaire we have prepared.
With your consent, and being the researchers’ respondents, the researchers are
humbly requesting your time to answer each question honestly.
47
Appendix B
Evidences
Documentation
48
49
50
51
CURRICULUM VITAE
Name:
Address:
Date of Birth:
Age:
Place of Birth:
Civil Status:
Parents
Father’s Name:
Mother’s Name:
Track/Strand:
Gabriel Ivan D. Villon
153 Rizal Avenue, Brgy. Tagumpay
Puerto Princesa City, Palawan
March 28, 2005
18
Puerto Princesa City
Single
Emmanuel P. Villon
Lorna D. Villon
Academic Track - Accountancy, Business,
and Management Strand
Educational Attainment:
Education Level
Name of School
Address
School Year
Awards Received
Senior HS
Palawan National
School
H. Mendoza St.
S.Y 2021-2022
With Highest Honors
S.Y 2020-2021
With High Honors
S.Y 2016-2017
1st Honor
Valedictorian
Brgy. Manggahan,
Puerto Princesa
City, Palawan
Junior HS
Palawan National
School
H. Mendoza St.
Brgy. Manggahan,
Puerto Princesa
City, Palawan
Elementary
Holy Trinity
University
M M. Quezon
Street, Brgy.
Maligaya, Puerto
Princesa City
Palawan
52
CURRICULUM VITAE
Name:
Address:
Date of Birth:
Age:
Place of Birth:
Civil Status:
Parents
Father’s Name:
Mother’s Name:
Track/Strand:
Francine Jan A. Casin
Malvar Socrates St., Vicente Rd.,
Brgy. Mandaragat, Puerto Princesa City, Palawan
March 27, 2005
18
Bacolod City, Western Visayas
Single
Honorio Manlangit Casin Jr.
Sheryl Francis Marie A. Casin
Academic Track - Accountancy, Business,
and Management Strand
Educational Attainment:
Education Level
Name of School
Address
School Year
Awards Received
Senior HS
Palawan National
School
H. Mendoza St.
S.Y 2021-2022
With High Honors
S.Y 2020-2021
With Honors
Brgy. Manggahan,
Puerto Princesa
City, Palawan
Junior HS
Palawan National
School
H. Mendoza St.
Brgy. Manggahan,
Puerto Princesa
City, Palawan
Elementary
Palawan State
University Laboratory
Elementary
School
M M. Quezon
Street, Brgy.
Maligaya, Puerto
Princesa City
Palawan
S.Y 2016-2017
53
CURRICULUM VITAE
Name:
Address:
Date of Birth:
Age:
Place of Birth:
Civil Status:
Parents
Father’s Name:
Mother’s Name:
Track/Strand:
Joseph Emmanuel B. Aborot
#95 Talakitok St., Brgy. Mandaragat,
Puerto Princesa City, Palawan
December 12, 2004
18
Puerto Princesa City, Palawan
Single
Albert A. Aborot
Eliza B. Aborot
Academic Track - Accountancy, Business,
and Management Strand
Educational Attainment:
Education Level
Name of School
Address
School Year
Awards Received
Senior HS
Palawan National
School
H. Mendoza St.
S.Y 2021-2022
With Highest Honors
S.Y 2020-2021
With High Honors
S.Y 2016-2017
6th Honors
Brgy. Manggahan,
Puerto Princesa
City, Palawan
Junior HS
Palawan National
School
H. Mendoza St.
Brgy. Manggahan,
Puerto Princesa
City, Palawan
Elementary
Holy Trinity
University
M M. Quezon
Street, Brgy.
Maligaya, Puerto
Princesa City
Palawan
54
CURRICULUM VITAE
Name:
Address:
Date of Birth:
Age:
Place of Birth:
Civil Status:
Parents
Father’s Name:
Mother’s Name:
Track/Strand:
Kurt Patrick R. Dela Cruz
Unit 4, Livingstone Apartments, Brgy. Maunlad
Puerto Princesa City, Palawan
June 20, 2004
18
El Nido, Palawan
Single
Sheller A. Dela Cruz
Gina R. Dela Cruz
Academic Track - Accountancy, Business,
and Management Strand
Educational Attainment
Education Level
Name of School
Address
School Year
Awards Received
Senior HS
Palawan National
School
H. Mendoza St.
S.Y 2021-2023
With Honors
Brgy. Manggahan,
Puerto Princesa
City, Palawan
Junior HS
Elementary
Potter’s Place
School
Taytay - El Nido
National Hwy, El
Nido, 5313
Palawan
S.Y 2019-2020
With Honors
Palawan Hope
Christian School
H. Mendoza St.
Brgy. Manggahan,
Puerto Princesa
City, Palawan
S.Y 2016-2019
With Honors
Life College
South Road, Brgy.
San Pedro, Puerto
Princesa City,
Palawan
S.Y 2015-2015
With Honors
Potter’s Place
School
Taytay - El Nido
National Hwy, El
Nido, 5313
Palawan
S.Y 2010-2015
With Honors
55
CURRICULUM VITAE
Name:
Address:
Date of Birth:
Age:
Place of Birth:
Civil Status:
Parents
Father’s Name:
Mother’s Name:
Track/Strand:
Xanshine E. Loriega
247 Manalo Extension, Brgy. Milagrosa,
Puerto Princesa City, 5300 Palawan
January 11, 2004
19
Puerto Princesa City
Single
Alexander P. Loriega Jr.
Rebecca E. Loriega
Academic Track - Accountancy, Business,
and Management Strand
Educational Attainment
Education Level
Name of School
Address
School Year
Awards Received
Senior High
School
Palawan National
School
H. Mendoza St.
Brgy. Manggahan,
Puerto Princesa
City, Palawan
SY: 2021 to
2023
With High Honors
Junior High
School
Palawan National
School
H. Mendoza St.
Brgy. Manggahan,
Puerto
Princesa City,
Palawan
SY: 2017 to
2021
With High Honors
Elementary
Kids World
Learning Center
Manalo Extension,
Brgy. Milagrosa
Puerto Princesa
City, Palawan
SY: 2011 to
2017
1st Honorable
Mention (3rd in batch
rank)
56
CURRICULUM VITAE
Name:
Address:
Date of Birth:
Age:
Place of Birth:
Civil Status:
Parents
Father’s Name:
Mother’s Name:
Track/Strand:
Bellie Joe L. Pepito
111 Roxas St. Brgy. Princesa,
Puerto Princesa City, Palawan
July 25, 2004
18
Puerto Princesa City, Palawan
Single
Bernardito O. Pepito
Concepcion L. Pepito
Academic Track - Accountancy, Business,
and Management Strand
Educational Attainment:
Education Level
Name of School
Address
School Year
Awards Received
Senior HS
Palawan National
School
H. Mendoza St.
S.Y 2021-2023
With Highest Honors
Brgy. Manggahan,
DSPC 2023 - 1st
Place Radio
Scriptwriting and
Broadcasting
Secondary English
Puerto Princesa
City, Palawan
RSPC 2023 - 3rd
Place Radio
Scriptwriting and
Broadcasting
Secondary English
UP Pautakan 2023 Champion
Photography and
Caption Writing
Junior HS
Palawan National
School
H. Mendoza St.
Brgy. Manggahan,
Puerto Princesa
City, Palawan
S.Y 2017-2021
With High Honors
DSPC 2019 - 1st
Place Radio
Scriptwriting and
Broadcasting
Secondary English
RSPC 2019 - 1st
Place Radio
Scriptwriting and
57
Broadcasting
Secondary English
NSPC 2020 - 1st
Place Radio
Scriptwriting and
Broadcasting
Secondary English
Elementary
Immaculate
Conception Parish
Learning Center
(Now Immaculate
Conception
Academy Palawan
Inc.)
4 Taft Street,
S.Y 2011-2017
With Honors
Brgy. Liwanag
Puerto Princesa,
Philippines
58