Abstract

This study aims to analyze the relationships between the retailers’ store choice and the characteristics of hypermarket stores and to identify the differentiated store choice strategies of retailers. The main results of the analysis of this study are as follows; First, in relation to the characteristics of land and buildings, large-scale store, parking convenience store, and standard stores have a positive (+) influence on the store choice of transnational retailers(TNRs); On the other hand, they have a negative (-) influence on the store choice of Korean incumbent retailers(KIRs). Second, in relation to the characteristics of trade areas and locations, exclusive location and residential districts have a negative (-) influence on the store choice of TNRs; On the other hand, they have a positive (+) influence on the store choice of KIRs. Third, in relation to the characteristics of competition and management, proximity to traditional markets, bidding methods, and M&A(Merger and Acquisition) have a positive (+) influence on the store choice of TNRs; On the other hand, they have a negative (-) influence on the store choice of KIRs. Last but not least, in the view of the differentiated strategies of the retailers, Homeplus used the fast follower strategies such as standard stores, nodular locations, proximity to traditional markets, and bidding methods and M&A. Emart used the first-mover strategies such as strategic formats(diversification), suburban locations and organic growth. Lottemart used the latecomer strategies such as standard stores, a monopoly location and proximity to a subway station, heterogeneous agglomeration locations.

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