• Journal of Distribution Science
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• v.13 no.7
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• pp.33-40
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• 2015

Purpose - This study aims to find out what impacts large retailers' behaviors appearing when they promote the strengthening of their market dominating power in the trade relations with small and medium suppliers or in the market can have on consumers. Research design, data, methodology - This study analyzed negative information (news) on large retailers (Lotte Mart, E-Mart and Homeplus) based on the monthly data over the past five years from 2008 to 2012 and also analyzed the correlation between dependent variables that are likely to affect sales through large retailer economic index, Results - This study conducted a correlation analysis on the time lag of the factors that have an impact on the negative information and sales of large retailers in order to analyze how consumers respond to the choice of large retailers' store (store sales) when they perceived negative information about the un- ethical behaviors of large retailers. Conclusions - Unfair and negative information on large retailers appeared significant for the hypothesis that sales will be affected by the image of large retailers and change of consumer attitudes.

• Journal of Distribution Science
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• v.12 no.2
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• pp.73-79
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• 2014

Purpose - The Korean government has revised the distribution industry development law to regulate large-scale retailer operations to protecting medium- and small-scale retailers and traditional markets. According to the revised law, large-scale retailers must follow regulations on operating hours and compulsory store closures two days per month. Based on the revised distribution industry development law, most local governments regulate operation hours and they have adopted compulsory closure programs for large-scale retail stores. However, it is argued that fresh food producers suffer from a decrease in sales based on the compulsory closure of stores operated by large-scale retailers. Large-scale retailers reduce their fresh food orders from agricultural and fishery producers because of the compulsory store closures. Fresh food producers also suffer from a decrease in prices because reduced orders lead to a decrease in auction prices based on the availability of excess goods in wholesale markets. This paper investigates the effects of operation regulations for large-scale retailers on agricultural producers by surveying agricultural and fishery producer organizations. Research design, data, methodology - A survey was conducted on 117 producer organizations of fruits and vegetables, cereals, fisheries, and livestock products from September 10 to October 4, 2012. Survey items are annual sales, shares of sales accounted for by large-scale retailers, reduction of orders and prices from large-scale retailers, methods to deal with the sales reduction, unfair trade practices of large-scale retailers, opinion of the large-scale retailer regulations, and so on. The average sales of the sampled producer organizations are 13.7 billion won and the average share of sales accounted for by large-scale retailers is 35.4%. Results - Survey results show that the sample producer organizations' sales decreased 10.1% because of the compulsory closures of stores operated by large-scale retailers. It is estimated that the total sales of producer organizations decreased 371.2 billion won because of the regulations on the operation of large-scale retailers. In addition to the direct effect of a sales decrease due to order reduction, agricultural and fishery producer organizations suffered from the secondary effect of price reduction in wholesale markets. When orders from large-scale retailers decreased, most agricultural and fishery producer organizations shipped redundant products to wholesale markets, decreasing auction prices. It was estimated that the price received decreased 21.9% when sold in other marketing channels. As producer organization sales decreased, it was reported that the labor force employed by producer organizations also decreased by 15.1%. Therefore, we can conclude that the regulations for large-scale retailer operations resulted in negative impacts on agricultural producers. Conclusions - Although the sales reduction due to the regulations for large-scale retailer operations are not great, the cumulative effects due to the continued compulsory closure of stores operated by large-scale retailers could be great. This paper suggests governmental programs that could help agricultural producer organizations to find new and effective marketing channels such as direct marketing, farmers' markets, exports, Internet shopping, and so on.

• Journal of Distribution Research
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• v.7 no.2
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• pp.21-44
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• 2003

The entry of large discount stores into small cities such as Choonchun or Wonju have had a profound impacts on the businesses of small-sized retailers. The impacts of the entry by large discount store will be much larger than those of the entry by department store or other small-scale retailers. Most of research studies on the competitive retail structure focused on the change of retailing in the advanced countries dynamically and investigated macro-trends in sales and market share. As a result, they tend to overlook the micro aspects of consumers" perception and actual behaviors. Furthermore, they tend to limit their research scopes to relatively competitive retailers not to overall competitive structures. In this study, we analyze the overall competitive structures by investigating the retailers" characteristics, perceptions of consumers on retailers and actual purchase of products across different types of retailers We could obtain competitive retail structure. Based on that, we discuss the strategies on the revitalization and enhancement of small-sized retailers" productivities.

• Journal of Distribution Science
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• v.18 no.2
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• pp.69-77
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• 2020

Purpose - This paper is aimed to analyze the effects of the mandatory closing regulation targeting large retailers, which has been implemented since 2012 to protect small retailers. We examine the changes in consumers' choice of retailers and their purchasing patterns of agri-food following the implementation of such regulation. Research design, data, and methodology - Household spending patterns were identified through the historical data of household food purchase, consumer panel provided by the Rural Development Administration. Clustering was employed to determine the household spending patterns. Moreover, the different household spending patterns before and after the regulation were comparatively studied. The patterns of consumers' choice of retail stores and shopping baskets by the type of retailers, derived from the respective datasets before and after the regulation, were compared to analyze the effects of the regulation. Results -After the regulation, some consumers who used to shop at large retailers before the regulation changed their shopping places to small retailers. However, the product categories that consumers had mainly purchased before the regulation were rarely changed even after the regulation. Conclusions - Although the regulation helped migrate some of the consumers to small retailers, the regulation seemed to have failed to stimulate consumers to purchase the goods, normally bought at large retailers, from traditional markets. In other words, traditional markets are not effective substitutes for regulation-affected retailers.

• Korean Business Review
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• v.14
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• pp.95-128
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• 2001

The entry of large discount stores such as LG-mart, E-mart into small cities such as Choonchun or Wonju have had a profound impact on the business of small-sized retailers. The impact of the entry by large discount store is too big compared to that of the entry by department store. Now, it becomes the matter of survival for small-sized retailers. Regulation and protection are not the best solutions to solve these problems. It cannot solve the fundamental problems. Consumer buy products based on their needs not retailers' problems. Without satisfying consumers' various needs and wants, retailers can not survive. Therefore, it is extremely important to understand retail competition from the perspective of consumers and investigate overall retail competition not competition between two different types of retailers. In this study, we analyze the relationship between products and purchasing places, the competitive relationship among retailers. As a result, we get big picture of retail market and discuss the revitalization of conventional retailers. In addition, we propose new solutions to conventional retailers' problems from the perspective of consumers.

• Journal of Distribution Science
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• v.12 no.7
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• pp.77-88
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• 2014

Purpose - Based on the existing retail policy literature, this study aims to compare Korea with foreign countries, to propose better ideas for the Korean retail market. Research design, data, and methodology - It is necessary to analyze the existing retail regulations after categorizing them into several groups, depending on why governments have regulated retailers and the background for the retail policy. Results - Given that Korean retail regulations have focused on protecting conventional markets, comparing the retail policy objectives of South Korea and foreign countries is difficult. Conclusions - It is necessary examine how to protect independent stores, irrespective of store locations across the country. Rather than limiting the distance between traditional markets and the projected locations suggested by large retailers, various factors such as store size limit, opening and closing times, below-cost selling, land use planning, and competition tests are needed to protect small stores. Further, centralized authority for store operations should be delegated to local governments, to tackle the aggressive expansion of retail giants. To protect independent stores, political background is among the most important factors.

• Korean Business Review
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• v.13
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• pp.107-132
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• 2000

The entry of large discount stores such as E-mart, LG mart, Magnet etc. into small cities have had a profound impact on the business of small-sized retailers. Now, it becomes the matter of survival for small-sized retailers and it is almost impossible to reverse those trends. Without satisfying consumers' various needs and wants, retailers can not survive. Therefore, it is extremely important to understand retail competition from the perspective of consumers in order for retailers to survive in the turbulent environment. The previous research studies on retail competition have focused on the comparison among different types of retailers with respect to strategic retail mix variables. However, they do not consider the competitive aspects of consumers' sides. In addition, we do not fully understand the meaning of "shopping." Shopping means hedonic shopping as well as utilitarian shopping. Utilitarian aspects are important but consumers also prefer' hedonic aspects too. That is the reason that traditional retailers such as small-sized retailers can not compete with modem and large retailers. We use three different methods to identify the macro and competitive structure. of retailing with respect to shopping. Factor analysis, multidimensional scaling, and multiple correspondence analysis are used to produce perceptual mapping of retail competition. Department store and large discount store are identified as close competitors but both might have an indirect impact on small-sized retailers through demand shift toward high end retailers.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.12 no.2
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• pp.686-693
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• 2011

Small-to-medium retailers in local neighborhood have been managing to survive without outside influence. However rapid change in business environment including consumer needs for goods and the quality of life has brought turbulence into retail business. Petty retailers are facing a crisis as large-sized discount stores owned by big enterprises are entering into traditional markets. To protect small-to-medium retailers from such threats and revive the traditional commercial markets the government is taking on the policy of subsidizing small-to-medium businesses. However, recent emergence of SSM (an industrialized supermarket in forms of direct management and affiliation) in local commercial areas has brought about conflicts and frictions between large companies and local merchants. Under this background this study attempted to make an analysis of vulnerable factors of small-to-medium retailers coping with SSM and probe for the alternatives to SSM business restructuring.

• Journal of Industrial Convergence
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• v.15 no.2
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• pp.37-43
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• 2017

As the number of SSM(Super Supermarket) has been growing, the conflict between large companies and small-to-medium retailers is being deeper in which large-sized market has been growing rapidly and small to medium retailers has been depressed. To solve the conflict, the government enacted the system of business limiting of large enterprises by SMEs. It brought growth of sales of small-to-medium retailers. However, unintended effects were caused by the system. This research aims to analyze underlying structure beyond conflicts between SSM and small to medium retailers using system thinking and draw relationships between key factors. Thus we can provide political alternatives through simulation model which is developed based on the factors.

• Journal of the Korean Society of Clothing and Textiles
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• v.32 no.8
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• pp.1233-1243
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• 2008

This study examined return policies of the Korean retailers and their differences by retail format. Return policies of 363 retailers including dept stores, discount stores, brand consignment stores, small shops, outlet stores, TV home shopping companies, and internet shopping malls were collected. Acceptance of refund or/and exchange, return grace period, and return requirements or restrictions of each retailer were analyzed. The results showed that most retail formats except small shops and internet shopping malls allowed refund. The seven day return grace period was most common though large retail chains allowed more generous time frames and small shops allowed shorter dates. Restrictions for return varied by retailers and retail formats. Generally retailers followed the guidelines of consumer protection laws. The study discussed implications of return policy analysis.