• Title/Summary/Keyword: supermarket retailer

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Lessons from Haitai Distribution Inc's experience in Korea

  • Cho, Young-Sang
    • Journal of Distribution Science
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    • v.9 no.3
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    • pp.25-36
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    • 2011
  • Owing to the rapid growth of hypermarket/discount store formats since 1996, Korean retailing has suddenly attracted the significant attention from researchers. Before the emergence of large scale retailers such as E-Mart, Lotte Mart and Tesco Korea, there were the two retail formats who led the Korean retailing in the modern retailing history: department store and supermarket formats. Nevertheless, there has been little literature concerned about the two retail formats as a case study, while some authors have paid their attention to hypermarket/discount store formats. In addition, when mentioning the development process of retailing history, it is less likely that authors have made an effort to illustrate supermarket retailing history. In order to regard supermarket retailing as part of the Korean retailing, it is interesting to look at a representative supermarket retailer, Haitai, who was one of the subsidiaries of Haitai chaebol. Based on supermarket retailing, the company which was established as a joint venture in 1974 led a supermarket retailing in the Korean modernised retailing history. Before analysing whether Haitai failed or not, the definition of failure should be illustrated. With regard to the term, failure, in the academic world, authors have interchangeably used the following terms: failure, divestment, closure, organisational restructuring, and exit. To collect research data as a case study, the author adopted an in-depth interview method. The research is based on research interviews with 13 ex-staff who left after Haitai went bankruptcy, from store management department to merchandise department. By investigating Haitai's experiences through field interviews, the research found that Haitai restructured organisational decision-making process at the early stage when companies started to modernise organisational charts, benchmarking sophisticated retailing knowledge through the strategic alliance with a Japanese retailer. In respect of buying system, the company established firmly buying functions by adopting central buying system, and further, outstandingly allocated considerable marketing resources to the development of retailer brands with the dedicated team of retailer brand development. In the grocery retailing, abandoning a 'no-frill' packaging concept, the introduction of retailer brand packaging equal to, or better than national brand packaging design, encouraged other retailers to change their retailer brand development strategies. In product sourcing ways, Haitai organised for the first time the overseas sourcing team with the aim of improving the profit margins of foreign products and providing exotic products for customers, followed by other retailers. Regarding distribution system, the company introduced the innovative idea which delivered products ordered by stores directly to each store withboth its own vehicles and its own warehouse in which could deal with dry foods, chilly foods, frozen food, and non-foods, and even, process produce. In addition, Haitai developed many promotional methods to attract more customers like 'the guarantee of the lowest price', and expanded its own business to US in 1996, although withdrew, because of bankruptcy in 1997. Together with POS introduction in 1994, Haitai made a significant contribution to the development of the Korean retailing, influencing other retailers in many aspects. As a case study, the study has provided a number of lessons from Haitai's experiences for academicians and practitioners, suggesting that its history should be involved in the Korean modernised retailing.

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The Growth Strategy of Retail Companies: Focusing on New Stores Expansion of E-mart

  • Lee, Gi-Hwang;Kim, Sang-Cheol
    • The Journal of Industrial Distribution & Business
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    • v.8 no.1
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    • pp.15-22
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    • 2017
  • Purpose - Retail companies are turning from one type of retailer to multiple business categories through various reasons, such as taking advantage of existed types of retailers' channel distribution, information and know-how, and entering into new types of retailers. However, there is few research conducted about multiple type of retailers. Research design, data, and methodology - In this research, the references, data and new stores on E-mart will be collected. The dissertation, annual report, statistical data, land-book of E-mart will be also collected to confirm whether E-mart has made any acquisition towards another company. Results - There is a tendency to new stores expansion, store enlargement and prolonging the opening preparation of new stores, based on the core of new stores expansion of E-mart as a general supermarket type of retailers. Based on general supermarket type of retailers, E-mart begins to diversify its retail company's type of retailers. Conclusions - As a general supermarket which is the most important type of retailers, E-mart is expanding into SSM type of retailers to seek new power of growth while slowdown growth is shown in general supermarket type of retailers. The expansion into SSM type of retailers would be a wise option as a retail company, E-mart is able to keep growing in the future.

The Knowledge Transfer of Tesco UK into Korea, in Terms of Retailer Brand Development and Handling Processes

  • Cho, Young-Sang
    • Journal of Distribution Science
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    • v.9 no.2
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    • pp.13-24
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    • 2011
  • With the increasing market share of retailer brands, many authors have paid considerable attention to retailer brands. Before market liberalisation in 1996 in Korea, retailer brand market was led by the supermarket retailing format, although the first retailer brand product was developed by the department store format. In parallel with the entry of foreign multiple retailers, the retailer brand market has experienced rapid growth. Particularly, the expansion of Tesco UK with well-established retailing know-how into Korea has encouraged Tesco Korea to actively get involved in retailer brand program. As a result, Tesco Korea has led retailer brand market in the Korean marketplace. The research starts with the question of why Tesco Korea has achieved such a higher retailer brand share. Accordingly, this study is to explore how Tesco UK has transferred its own retailing knowledge into Tesco Korea, in terms of retailer brand program development. In order to explore why the retailer brand share of Tesco Korea is higher than that of its counterparts, the author adopted in-depth interview with prepared-questions and store observation as a research methodology. To examine working process as well as information flows within Tesco Korea and from UK to Korea, in-depth interview method is one of the most suitable research methodologies, because of the difficulty of quantifying information or data related to work flows. In addition, to increase the validity of information, the researcher had interviews with Tesco Korea supplier and store personnel. Based on these research techniques, this research explored how Tesco UK has influenced or advised Tesco Korea, particularly, from the point of view of knowledge transfer. Since the entry of Tesco UK into Korea as a joint-venture, the retailer brand market share of Tesco Korea has continuously increased. It would be expected that Tesco UK has helped Tesco Korea to settle down in the Korean market. During interviews with Tesco and a Tesco supplier, the researcher found that Tesco Korea has obviously taken an advantage of retailing know-how created by Tesco UK. Furthermore, the retailer brand development and handling process of Tesco Korea has been operated with the help of Tesco UK. This might mean that Tesco UK has directly or indirectly an impact on the improvement of Korean retailer brand development skills. As a mechanism to transfer retailing knowledge developed in the home market into the host market, one of the international retailers, Tesco UK has adopted many different ways such as annual meeting, trading meeting to import or export own retailer brand products, offering of operation manual developed by Tesco UK and buyer cooperation between Tesco UK and Korea, in order to share information. Through these communication techniques, the knowledge of Tesco UK has been transferred to Tesco Korea. This research accordingly suggests that retailer brand market share is apparently related to how sophisticated or advanced the knowledge of the retailer brand development and handling process of retailers are. It is also demonstrated by this research that advanced development and handling skills make a considerable contribution to increasing retailer brand share in markets with a lower share or no presence of retailer brands.

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A Study on Consumer's Choice Factors for Retailer Shops - Focused on Traditional Market, Super Supermarket and Discount Store in Daejeon, Korea - (소매업태에 대한 소비자 선택요인에 관한 연구 - 대전지역 재래시장, 중형마트(SSM), 대형마트를 중심으로 -)

  • Jung, Nan-ho;Kim, Nam-myun;Sung, Il-seok
    • Journal of Distribution Science
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    • v.4 no.2
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    • pp.41-64
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    • 2006
  • The research is focused on planning the politic direction and on establishing an activating planning for retailer shops such as traditional market, super supermarket, discount store in Daejeon. The empirical study shows that the consumers most satisfied with discount store, meanwhile least with traditional market. Especially, it is proved that parking facility is the most important factor affecting consumer's satisfaction. This study also suggests some important strategic implications through IPA (important- performance analysis). Those are, first, the traditional market needs to improve for six categories of IPA factors, however the super supermarket for four, and the discount store for three. Second, the discount store has eight prominent advantages of the factors, however the super supermarket has seven, and the traditional market has five. Finally, the traditional market has to concentrate facility improvement for consumer's convenience in the long term.

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Theoretical Analysis on Membership Fee of Wholesale Club (회원제 도매클럽의 연회비부과에 대한 이론적 연구)

  • 김상훈
    • Journal of Distribution Research
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    • v.5 no.2
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    • pp.91-105
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    • 2001
  • Wholesale club is one of the fastest expanding retailer formats. Given its key features such as limited assortment and no promotion policy, the current paper provides a theory on why the wholesale clubs charge their members fixed annual fees. In a competitive setting with supermarkets, the proposed model demonstrates that the membership fee is the optimal reaction of wholesale clubs to supermarkets" sales promotion. More specifically, the positive amount of annual fee is only justified under the condition that there exists consumer heterogeneity in consumption rate and when the supermarket exercises price promotion on the product that the wholesale club carries. This paper describes the competition in a stylized fashion and derives the optimal membership fee under a scenario where retail promotion is present. This study is valuable in that it offers a different explanation on wholesale club membership fee than conventional wisdoms such as cost sharing and that it provides insights to the managers who consider no-fee format.

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Survey on Wheat Flour Utilization in Korea (우리나라의 밀가루 이용실태 조사)

  • Kim, Sung-Kon;Kim, Bok-Nam
    • Journal of the Korean Society of Food Culture
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    • v.4 no.1
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    • pp.109-120
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    • 1989
  • The use of wheat flour in Korea in 1986 and 1987 was surveyed. A brief outline of wheat flour milling industry was also included. Since the overall trend in flour usage in 1986 and 1987 was similar, the data in 1986 were presented. Total sales volume of wheat flour was 1,556,891M/T, of which 51.1% was sold to wholesale agents and the remainder to commercial users. The main usages of flour were noodle-making, baking, brewing and common use including home use, retailer and supermarket. The first and second class of all-purpose flour were used for noodle-making and brewing. Bread was produced with the first class of strong flour. For confectionery the first class of all-purpose flour was mainly used.

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The Determinants of Customer Loyalty: The Case Study of Saigon Co.op Supermarkets in Vietnam

  • NGUYEN, Cuong Quoc;PHAM, Ngan
    • Journal of Distribution Science
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    • v.19 no.5
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    • pp.61-68
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    • 2021
  • Purpose: Retailing is one of the fastest-growing sectors in Vietnam. In the sight of foreign investors, the Vietnamese retailing market is very prospective. However, the current competition is very intensive, and retailers are keen on gaining new customers. Hence, Vietnamese retailers have paid more attention to customer loyalty. Saigon Co.op is one of the largest retailers in Vietnam, but its consumers have more choices over a retailer. As a result, Saigon Co.op has realized the significance of customer loyalty. This study aims to determine the factors impacting customer loyalty of Saigon Co.op supermarket in Vietnam. Research design, data and methodology: this study applied the multiple regression analysis with 250 samples collected from Saigon Co.op customers. The questionnaire is provided to respondents via Google Form, and the link is sent to the fan page of Co.op mart on Facebook. Two hundred eighty-seven samples were collected, but 37 samples were removed due to missing values. Exploratory Factor Analysis (EFA) and regression analysis are used for data analysis on SPSS software version 20. Results: The findings show all four determinants of Saigon Co.op's customer loyalty, including Product Quality, Brand Image, Price Strategy and Service Quality. Conclusions: managerial recommendations are provided for supermarkets to improve their customer loyalty in Vietnam and other emerging markets. Limitations and suggestions for further research are also discussed.

Analysis of the competition between SSM's and Small and Medium sized Distributor on System Thinking (시스템사고로 분석한 SSM과 중소유통사업자 경쟁관계 분석)

  • Jung, Jaerim
    • 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.

A study on the Regulatory Environment of the French Distribution Industry and the Intermarche's Management strategies

  • Choi, In-Sik;Lee, Sang-Youn
    • The Journal of Industrial Distribution & Business
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    • v.3 no.1
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    • pp.7-16
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    • 2012
  • Despite the enforcement of SSM control laws such as 'the Law of Developing the Distribution Industry (LDDI)' and 'the Law of Promoting Mutual Cooperation between Large and Small/medium Enterprises (LPMC)' stipulating the business adjustment system, the number of super-supermarkets (SSMs) has ever been expanding in Korea. In France, however, Super Centers are being regulated most strongly and directly in the whole Europe viewing that there is not a single SSM in Paris, which is emphasized to be the outcome from French government's regulation exerted on the opening of large scale retail stores. In France, the authority to approve store opening is deeply centralized and the store opening regulation is a socio-economic regulation driven by economic laws whereas EU strongly regulates the distribution industry. To control the French distribution industry, such seven laws and regulations as Commission départementale d'urbanisme commercial guidelines (CDLIC) (1969), the Royer Law (1973), the Doubin Law (1990), the Sapin Law (1993), the Raffarin Law (1996), solidarite et renouvellement urbains (SRU) (2000), and Loi de modernisation de l'économie (LME) (2009) have been promulgated one by one since the amendment of the Fontanet guidelines, through which commercial adjustment laws and regulations have been complemented and reinforced while regulatory measures have been taken. Even in the course of forming such strong regulatory laws, InterMarche, the largest supermarket chain in France, has been in existence as a global enterprise specialized in retail distribution with over 4,000 stores in Europe. InterMarche's business can be divided largely into two segments of food and non-food. As a supermarket chain, InterMarche's food segment has 2,300 stores in Europe and as a hard-discounter store chain in France, Netto has 420 stores. Restaumarch is a chain of traditional family restaurants and the steak house restaurant chain of Poivre Rouge has 4 restaurants currently. In addition, there are others like Ecomarche which is a supermarket chain for small and medium cities. In the non-food segment, the DIY and gardening chain of Bricomarche has a total of 620 stores in Europe. And the car-related chain of Roady has a total of 158 stores in Europe. There is the clothing chain of Veti as well. In view of InterMarche's management strategies, since its distribution strategy is to sell goods at cheap prices, buying goods cheap only is not enough. In other words, in order to sell goods cheap, it is all important to buy goods cheap, manage them cheap, systemize them cheap, and transport them cheap. In quality assurance, InterMarche has guaranteed the purchase safety for consumers by providing its own private brand products. InterMarche has 90 private brands of its own, thus being the retailer with the largest number of distributor brands in France. In view of its IT service strategy, InterMarche is utilizing a high performance IT system so as to obtainas much of the market information as possible and also to find out the best locations for opening stores. In its global expansion strategy of international alliance, InterMarche has established the ALDIS group together with the distribution enterprises of both Spain and Germany in order to expand its food purchase, whereas in the non-food segment, it has established the ARENA group in alliance with 11 international distribution enterprises. Such strategies of InterMarche have been intended to find out the consumer needs for both price and quality of goods and to secure the purchase and supply networks which are closely localized. It is necessary to cope promptly with the constantly changing circumstances through being unified with relevant regions and by providing diversified customer services as well. In view of the InterMarche's positive policy for promoting local partnerships as well as the assistance for enhancing the local economic structure, implications are existing for those retail distributors of our country.

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