Abstract

Increasing competition in the grocery retail sector in Malaysia has moved many retailers regardless of size, to find competitive edges that could place them ahead of the rest. In Malaysia where 60% of the population is Muslims, compliance to the Islamic regulations on food is an important aspect for retail consumers who shopped in various retail store format. Despite high percentage of Muslims in the country, many grocery stores are foreign owned or operated by non-Muslim Malaysians. Within this scenario, it is imperative that grocery retailers - either foreign or locally owned - address issues related to the needs of the Muslim grocery shoppers. However, halal or compliance to Islamic requirements as a critical retail service quality dimension that affects food shopping is left unexplored. This study is therefore a step at identifying the halal retail service quality dimension that attracts Muslim Malaysian consumers to shop at certain grocery outlets and its implications on strategic retail development.