Retail Mix Strategies to Increase Foot Traffic and Purchase Conversion at METRO Department Store Resinda Park Karawang

Alia Cahyani Putri; Sarah Aprilia; Ario Setra Setiadi

doi:10.55047/jekombital.v4i4.1210

Authors

Alia Cahyani Putri* Department of Management, Binus Business School, Universitas Bina Nusantara, Indonesia
Sarah Aprilia Department of Management, Binus Business School, Universitas Bina Nusantara, Indonesia
Ario Setra Setiadi Department of Management, Binus Business School, Universitas Bina Nusantara, Indonesia

DOI:

https://doi.org/10.55047/jekombital.v4i4.1210

Keywords:

Conversion Rate, Foot Traffic, Promotion, Retail, Store Atmosphere

Abstract

In physical retail, the shift toward omnichannel shopping has made it increasingly important for department stores to not only attract visitors but also convert those visits into purchases, making the drivers of foot traffic and conversion rate a critical issue for retailers operating within shopping centers. This study analyzes the retail mix strategy affecting foot traffic and conversion rates at METRO Department Store, Resinda Park Mall, Karawang. The research model places store location, promotion, store atmosphere, and product as exogenous variables, foot traffic as a mediating variable, and conversion rate as the endogenous variable. A quantitative explanatory approach was applied to survey data from 200 respondents, analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) in SmartPLS. The measurement model indicates that all indicators have outer loadings above 0.70, Cronbach’s alpha values above 0.85, composite reliability values above 0.89, and AVE values above 0.63, confirming adequate reliability and convergent validity. The structural model explains 51.9% of the variance in foot traffic and 73.0% of the variance in conversion rate. Bootstrapping results indicate that promotion, store atmosphere, and product significantly increase foot traffic, whereas store location has no significant effect. Foot traffic significantly affects conversion rate and mediates the effects of promotion, store atmosphere, and product on conversion rate. The findings suggest that METRO should prioritize promotional activation, engaging store atmosphere, and product assortment to increase visitor flow and purchase conversion.

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