INFLATION ON BUSINESS PERFORMANCE OF THE RETAIL SECTOR: BASIS FOR A BUSINESS ENHANCEMENT PROGRAM

This study investigated the assessment of inflation on business performance of retail sectors in the Municipality of San Jose de Buenavista with a particular emphasis on the cost structure and profitability. The data were gathered from 140 retail businesses using a descriptive research design. Statistical analysis such as frequency, percentage, mean, standard deviation, Mann–Whitney U test and Kruskal–Wallis H test was conducted using SPSS 27 at a 0.05 level of significance. The findings revealed that retail businesses generally experience a high level of inflationary impact on both their cost structure (3.74) and profitability (3.68) which indicates that inflation substantially increases operating expenses and places pressure on earnings. A significant difference was observed on the years of operations of the businesses especially on its cost-structures while no significant difference was found on the type of retail sectors and on its business location. These findings highlight the need for a structured business enhancement program which recommends the implementation of effective cost-management practices, adaptive financial planning, and coordinated support strategies while increasing awareness about inflation to foster a deeper understanding of its long-term effects on retail business performance as well as to support the development of sustainable, evidence-based intervention strategies ensuring business sustainability.