Abstract

1. CONTENTS (1) RESEARCH OBJECTIVES This study established a model for determining department store sales, including departmentstorecharacteristicvariablessuchasMD,brand,andoperationmethod,alongwith locationandfacilitiesfordepartmentstoresnationwide.Inconclusion,thisstudyderivesan efficient development plan for the department store industry.
 (2) RESEARCH METHOD The analysis method of this study applied the Hedonic Price Model, which assumes a seriesoffunctionalrelationshipswithdepartmentstoresalesandindependentvariables,which are dependent variables.
 (3) RESEARCH FINDINGS Asaresultoftheanalysis,itwasfoundthat15independentvariableshadasignificant effect on department store sales. The variables with positive coefficient are subway lines, numberofroads,airport,terminal,trainstation,parkinglot,duty-freeshop,luxurystorerate, vehicle visit, floating population density, Gyeonggi/Incheon area, and 12 other local areas 2. RESULTS Based on the analysis results, the following implications can be presented. First, departmentstoreoperatorsshouldcomparetherentalcostfortransportationenvironmentand facilitiesandtheutilityforprofitswhenopeninganewdepartmentstore.Second,department store companies need appropriate remodeling or modern changes to buildings. Third, it was foundthattheentryofduty-freeshopsandluxurystoreshadasignificantpositiveeffecton departmentstoresales.Therefore,departmentstoresneedstrategiestomeetthedemandfor high-priced consumption. Finally, department store operators should consider Gyeonggi-do, Incheon, and key regions of the province first when opening new department stores.

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