• Title/Summary/Keyword: retail locations

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Retailing and Public Policy: A Comparative Study of South Korea and Foreign Countries

  • Cho, Young-Sang
    • 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.

A GIS Based Spatial Decision Support System for Retail Center Locations (소매중심지 입지를 위한 GIS기반의 공간적 의사결정 지원시스템)

  • 백영기
    • Journal of the Korean Geographical Society
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    • v.36 no.3
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    • pp.278-291
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    • 2001
  • This paper is to build a spatial decision support system designed to solve problems relevant to the decision-making for retail center locations. For construction of the system this paper discusses the primary procedures of spatial modeling and issues of data, which are required for integrating spatial interaction models to GIS having capability of managing, analyzing and visualizing spatial data sets. Lexington, Kentucky, is selected as a case study to implement the spatial decision support system based on the spatial modeling module. This system for retail center locations is useful of estimating the catchment areas more accurately and analyzing resultant flow patterns. And this system can make spatial analysis efficiently for what-if scenarios such as an intended retail center or changing demand. The benefits of adopting this system allow the decision makers to plan the investment strategies and search for stable market structure.

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A Comparison Study on Retailer-managed and Vendor-managed Inventory Policies in the Retail Supply Chain (소매점 공급사슬에서 소매점주도와 공급자주도 재고정책에 대한 비교 연구)

  • Hong, Sung-Chul;Park, Yang-Byung
    • Journal of Korean Institute of Industrial Engineers
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    • v.32 no.4
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    • pp.382-392
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    • 2006
  • Vendor-managed inventory policy(VMIP) is a supply-chain initiative where the supplier is authorized to manage inventories of items at retail locations. In VMIP, the supplier monitors sales and stock information at retail locations and makes decisions of inventory replenishment and transportation simultaneously. VMIP has been known as an effective supply chain strategy that can realize many of benefits obtainable only in a fully integrated supply chain. However, VMIP does not always lead to lower the supply chain cost. It sometimes generates the total supply chain cost higher than the traditional retailer-managed inventory policy (RMIP). In this paper, we perform a comparison study on RMIP and VMIP in the retail supply chain which consists of a single supplier and a number of retailers. We formulate mixed integer programming models for both RMIP and VMIP with vehicle routing problems and perform computational experiments on various test problems. Furthermore, we derive the conditions which guarantee the dominant position for VMIP with respect to total supply chain cost in the simple retail supply chain.

A comparative study between Korea and the USA on the development process in retail trade & its changing locations (소매업의 발달과정과 입지 변화에 관한 한.미 비교 연구)

  • Jeon, Kyung-Sook
    • Journal of the Korean association of regional geographers
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    • v.6 no.2
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    • pp.21-40
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    • 2000
  • The retail trades in many countries have changed recently according to the high quality, diversification, and marked individuality of consumer needs. Under the continually competing system of the WTO agreement, corporations based in the USA and the EU try to raise their market share in other countries so it is inevitable for Korean retail enterprises to compete with them. This paper is aimed at contributing to the efficient growth for Korean retail trade from the analysis of the development process in retail trade and its changing locations comparing Korea and the USA. Retailers in the USA have practiced diversified marketing strategies considerably in order to survive in a rapidly changing retailing environment. American retailing, which has the most advanced marketing system in the world, has been of growing concern to marketing strategies in Korea. The following is a brief summary of this study. 1. Speedy and higher quality consumption is needed in accordance with the great increase in the single-family household and the female labor force participation both in Korea and in the USA. Senior citizens have become a new consumer group due to the aging population. In the future the retail trade will switch over to diversified retail formats and internet shopping as countries are transformed into information and communication societies. 2. In Korea, the former retail system characterized by markets and department stores has been greatly changed since the late 1980s with emphasis on high quality and convenience in consumption behaviors, with large domestic enterprises and foreign distribution corporations participating in Korean retailing. In the USA, retailing mergers and takeovers by major retails, bankruptcies, and extra-large shopping centers have emerged since the late 1980s. Recently, the USA retailing formats have been changed from the lower price-oriented discount types to the large scale theme parks. Much emphasis was put on entertainment, resorts, and convention centers. On the other hand, non-store types, such as the internet shopping, the CATV shopping, as well as catalog and mail-order sales are drastically increasing, although the proportion of their sales is low up to now. 3. In Korea, most of the retail facilities are concentrated in Seoul and the Metropolitan Region, and the distribution ratio of facilities came to 52% in 1997. The periodic markets, traditional markets which open on a periodic basis, are located mainly in Chollanam-do and Kyungsangbuk-do. The large-sized discount stores have expanded their locations to the over-crowded apartment complexes in new towns, located in the Metropolitan Region, and the large provincial cities, unlike the suburban locations in the USA. Therefore we needed to give attention to the locational relations in retail facilities between Seoul & the Metropolitan Region and rural settlement areas. In the USA, urban areas grew quickly with the development of the automobile in the 1920s, and the location of stores changed from a dispersed style centering around rural areas to a centralized one in urban areas. There is an accelerated growth for suburban areas, which have grown rapidly since 1950. As the membership warehouse clubs were introduced in the 1970s, the decentralization of location was more intensified. On the other hand, inner cities were revitalized by rearranging existing facilities to cope with suburban areas. And the location-free virtual retailing & TV shopping are also growing every year. 4. In view of the above, the continuous and desirable development devices in Korean retail trade are summarized as follows: First, the countermeasures against economies of scale, increase in retailing sales, and rise of a employment percentage in retailing are in need. Second, a scheme of lowering the proportion of food retail sales, and increasing a ratio of durable goods sales need to be worked out. Third, the original ideas are needed to apply positively information, communication and technology to retailing, to graft the traditional types on modem ones based on the social culture. Fourth, strategies are needed to strengthen the competitiveness of our retail trade through cooperation and chains of smaller retailers, the large enterprises participating in the distribution industry. Fifth, in order to realize the above, the retail industry, the administration, and the academic world should support the retail segment with concern and a practical strategy plan.

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Unattended Trends and Retail Locations: Focusing on Unmanned Convenience and Discount Stores in Seoul (점포의 무인화와 소매점 입지: 서울시 무인 편의점과 무인 할인판매점을 대상으로)

  • Park, Sohyun;Lee, Keumsook
    • Journal of the Economic Geographical Society of Korea
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    • v.24 no.4
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    • pp.411-424
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    • 2021
  • The purpose of this study is to analyze the location characteristics of convenience stores, a consumption industry that forms a new retail environment and implements unattended, and reveals the geographic factors that affect its location. For this purpose, we first examine the growth and regional distribution of manned convenience stores and then construct a gamma generalized linear regression model that explains the distribution of the unmanned convenience stores as well as the manned and unmanned combined convenience stores. As the result, it was observed that the unmanned convenience stores and the unmanned discount stores are located close to public transportation facilities and they have relatively little movement of the population but they are distributed in areas with a higher density of young residential population and densely distributed retail stores and restaurants. The effects of demographic factors on the location of the unmanned convenience stores and the unmanned discount stores differed according to the scope and characteristics of their sales items. Our findings provide an empirical basis for subsequent academic research as an initial study that identified geographic factors influencing the selection of opening locations for unmanned stores.

A Geostatistical Analysis of Retail Coffee Store Distribution (위치정보를 활용한 커피 전문점의 입점 분석)

  • Lee, Dongyoup;Youn, Youngtae
    • Journal of Information Technology Services
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    • v.15 no.2
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    • pp.203-217
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    • 2016
  • This paper explores the distribution of the retail coffee franchise stores in Seoul using geostatistical analyses. The fact that lots of coffee stores are concentrated in the central area-Jongno and Jung-gu and commercial area-Gangnam and Seocho shows that the size of the floating population and potential customers is one of main drivers for making decisions on the locations of new stores. Except these 4 districts, the number of stores and population exhibit a positive correlation. By extracting the information on the 6 large coffee franchises store locations, we calculate the both haversine distances between stores of the same franchise and between stores of different franchises. We then empirically test the sitting and marketing strategies of Starbucks, Ediya, and Paik-Dabang using distance distributions. Significant pairs of Starbucks stores located within 100m confirm the sitting strategy of Starbucks which opens additional stores at crossways, stations, near shopping malls or other business zones though there already exist Starbucks stores. Meanwhile considerable portion of Ediya stores are found near Starbucks stores, which coincides with the sitting strategy of Ediya. We also find that Paik-Dabang that uses the low cost strategy has its stores open relatively farther than other franchises from Starbucks stores.

The Location Patterns of Retail Services and the Consumer Behaviors in Jeju Island (소매 유통업체의 입지적 특성과 소비자 이동 행태에 대한 분석: 제주도 서귀포시를 사례로)

  • 현기순;이금숙
    • Journal of the Economic Geographical Society of Korea
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    • v.7 no.1
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    • pp.97-115
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    • 2004
  • The purpose of this study is to investigate the spatial pattern of retail services and the consumer behaviors. For the purpose we select Jeju Island as the study area, because it retains relatively little distorted retail service systems by it's locational isolation. The retail service systems comprise three types: large-scale modern marts, conventional markets, and periodic markets. This study attempts to examine the interrelationships between these three different types, of retail services, and to figure out the spatial characteristics of consumer behaviors for each of them. We performed questionnaire surveys for getting the data of consumer behaviors. We applied several statistical methods to analyze the survey data. Most of retail services are located in two urban centers, Jeju City and Seoguipo City. We found that the locations of retail services are determined strongly by population size. The selection of market type and the location to go for shopping are related strongly with the types of goods. However, there is a wide difference in the consumer behaviors according to the consumer's socio-economic characteristics. Young wives tend to go shopping to large-scale marts in Jeju City which is the higher level central place, while old wives go shopping to conventional markets and periodic markets. They also show different shopping behaviors according to the household income levels. Low income groups prefer to go conventional markets located near to their residence, middle income groups go to large-scale marts in Jeju, and high income group go out of the Jeju Island. However, the consumer behavior does not show big difference according to the size of family. There are also no difference in the selection for shopping location according to the consumer's resident locations.

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Analysis on Preceding Study of Consumer's Store-Choice Model: Focusing on Commercial Sphere Analysis Theories

  • Quan, Zhi-Xuan;Youn, Myoung-Kil
    • The Journal of Industrial Distribution & Business
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    • v.7 no.4
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    • pp.11-16
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    • 2016
  • Purpose - There are numerous theories for retail trade area analysis which are designed to select candidate locations for new stores. In this study, comparative analysis on the characteristics from those of the theories are shown, and the explanation for the power in consumers' store-choice behaviors and their limitations are examined. Also, plans for improving commercial sphere analysis are explored. Research design, data, and methodology - This study is based on literature reviews with normative research methodology. Among many researches regarding the analysis on the location and commercial sphere for launching a new store, researches relying on statistics are excluded in this study since they belong to the marketing research area,. Results - In the Law of retail gravitation, Huff's model multinomial logit model and etc. are mutual complementary mathematical techniques for analyzing commercial spheres and each of them has its own characteristics. These theories rely on the same hypothesis in which consumers are all believed to be behaving rationally under a similar behavioral system. However, the trial in explaining or estimating behavior of choosing a store with only a select size of the population that is objectively estimated by some major properties has limits in its credibility. Conclusion - Research on consumer's spatial behaviors can be fully illustrative and explainable when it has both quantitative approaches such as 'law of retail gravitation', 'logit model' and etc., and qualitative approaches like consumer's 'cognitive structure', 'learning status', 'image formation', 'attitude' and etc.

Moderating Effect of Color on Store Atmospherics Predictors

  • Verma, Pranay;Prashar, Sanjeev
    • Asian Journal of Business Environment
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    • v.7 no.1
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    • pp.13-23
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    • 2017
  • Purpose - Pleasing ambient colors, music, scent, layout and salespeople are hypothesized to positively impact shoppers' perceptions about the atmosphere of a store. Few studies on the interactive effect of these atmospheric factors have earlier been undertaken. This paper looks at the interactive effect of color on the other predictor variables. Research design, data, and methodology - This study is from field locations in the shopping malls located in Delhi NCR. A descriptive study was undertaken to decipher the interactive effect of color with music, scent, layout and salespeople. Moderation of color on music, scent, layout and salespeople is regressed on store atmospherics. The authors investigate the effects of color, light, music, scent, layout and salespeople on store atmospherics in a retail context. They also study the interactive effect of color with predictor variables which significantly influence the perception of store atmospherics. Results - The paper reveals that music, scent, layout and salespeople influence customer's perception about store atmospherics. The interactive effect of color with scent, layout and sales people influence customer's perception about store atmospherics significantly. It does not moderate with layout and music. Conclusions - Store color is important in predicting store atmospherics. Care is needed to ensure that the effects of different environmental stimuli match.

A study about the effects of online commerce on the local retail commercial area (온라인 거래의 증가가 지역 소매 상권에 미치는 영향에 관한 연구)

  • Lee, Kangbae
    • Economic Analysis
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    • v.25 no.2
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    • pp.54-95
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    • 2019
  • The purpose of this study is to analyze quantitatively and qualitatively the effects of the increase in online shopping and its effects on real-world commercial outlets. The empirical analysis of this study is based on the results of "Census on Establishments" and "Online Shopping Survey" that cover 15 years, from 2002 to 2016. According to the results of this study, the increase in the number of online transactions affects the decrease in the number of stores in the real-world retail sector. However, non-specialized large stores and chain convenience stores showed an increase in the number of stores. In addition, the number of F&B stores increased the most in line with the increase in online transactions. This is because the increase in online transactions and in internet users led to the use of more delivery applications and the introduction of popular places on blogs or through social media. Street-level rents for medium and large-sized locations increased. In other words, it is seen that the demand for differentiated real-world stores that provide a good user experience increases, even though online transactions also increase. These results suggest that real-world stores should provide good user experiences in their physical locations with a certain size and assortment of goods.