The Establishment and Management of Cooperative Department Stores in the Tonami Region, Toyama Prefecture

Abstract

Cooperative Department Stores (CDS) have been established in low-order central places by local small businesses since the 1970's, proceeding with modernization of the rural retail structure of Japan. To establish CDS is one of the Modernization Projects of Smaller Businesses which the Small Business Corporation promotes. CDS were established to reorganize competitive retail structure within a region, when remodeling shopping streets did not change it. In addition, CDS were managed with united efforts, unlike ordinary shopping centers. The research of CDS is one of the rare subjects through which we can approach the regional retail structure on the analytical level of management of businesses.One of the purposes of this paper is to clarify the processes of planning and establishing CDS, and the other is to characterize their organization and management. The study area is the Tonami Region, Toyama Prefecture, where CDS are densely distributed. For the latter purpose, the case study is limited to two central places, Demachi (the central settlement of Tonami City) and Fukumistu, charecteristics of which are compared. Demachi is the central place where the CDS was first established in the Tonami Region. A CDS was established in a part of the remodeled shopping streets in Fukumitsu.The results obtained about the processes of planning and establishing CDS are summarized as follows:1) In Demachi, the CDS was established in opposition to the advance of a large-scaled retail business outside the region. As the shopping center and the CDS were established, the retail trading area of Demachi was greatly expanded.2) The expansion of the area urged to establish agricultural cooperarative markets and shopping centers including CDS in central places around Demachi -in Isurugi, Fukuno, Inami, Toide, Johana and Fukumitsu. The opposition within a central place (Demachi) caused the competition between central places in the southern Tonami Region.3) All CDS established in the middle of the 1970's were located on the inner fringe of central settlements, not far from the central shopping streets. Vacant factory lots were often selected as sites for CDS.4) Owing to increasing motor traffic, parking lots have been increasingly wanted since the late of the 1970's. Some of shopping centers established after the 1980's were located on farmland of the outer fringe of the central settlements.5) Chain stores did not occupy shopping centers including CDS, but opened as small-scaled supermarkets by themselves after the late of 1970's. Such a trend was related to the localized application of the Large-Scaled Retail Stores Act.6) As the retail trading area in the Tonami Region was reorganized by the new advance of much larger-scaled stores than the exisiting ones into Isurugi and Demachi, the second shopping center in Fukuoka was established, and the CDS in Inami and Fukuno were moved and enlarged. These shopping centers were established under more explicit administrative controls to insist on their close relation to each region. The case of the CDS in Fukumitsu was a leading one of the project.The main results obtained about the organization and management of CDS:1) Before the cooperatives were established, the essential porcedures to establish CDS (financial program, selection of sites and recruitment of members) had been carried out.2) Investments and construction funds which each member of the corporatives contributed were assigned in proportion to the occupation area and according to the story which each member occupied. As construction funds were often alloted for the costs of enlarging and remodelling the building, members that were to do business for a long term contributed the funds to the cooperatives. Reserves to redeem the Funds for Modernization of Smaller Businesses were assessed to each member, as well.