The Influence of Return Frequency, Value, and Type on Store Operational Performance via Inventory Management

Abstract

Modern retail faces challenges in managing product returns because return activities are associated with inventory accuracy and store operational continuity. This study aims to analyze the effects of return frequency, return value, and return product type on store operational performance with inventory management as a mediating variable at Alfamart Cianjur Branch. A quantitative approach was employed with 180 respondents selected using purposive sampling. Data were collected through questionnaires and analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS) with SmartPLS. The results show that return frequency, return value, and return product type have positive and significant effects on inventory management. Return frequency and inventory management have positive and significant effects on store operational performance, whereas return value and return product type do not have significant direct effects. Inventory management significantly mediates the effects of return frequency, return value, and return product type on store operational performance. These findings highlight the importance of strengthening return control, inventory-record accuracy, and return-product classification to support store operational efficiency.