Abstract
Traditional retail markets have long been the center for urban vitality, yet they have been under threat of advancing superstores run by corporate retailers. Studies have attempted to identify the competitiveness of the markets, but empirical evidence is not sufficient for presenting which factors contribute to the maintenance of a traditional market’s economic vitality. In South Korea, urban policies have been directed to revitalizing the markets, but their effectiveness has been questioned. This study aims to fill this void by examining traditional markets in Seoul with multiple regression on (1) the revenue and (2) the volume of customers and with negative binomial regression on (3) the popularity measured by the number of blog posts on the markets. Using a comprehensive set of variables, this paper finds that investments in physical infrastructure (p < 0.000) and organizational/operational capacities (p < 0.008 and p < 0.094) make a significant contribution to the economic vitality. Among product categories, the ratios of perishable food stores were found to be significant (p < 0.000) as well as those of food shops and vendors (p < 0.030). On the other hand, extending convenient facilities and anchor stores would reduce the revenue in the short term. In addition, traditional markets that are recognized as popular destinations may not necessarily be profitable. In this vein, attention should be paid to this mismatch when a strategy is deliberated to transform a market into a tourist attraction.
Highlights
Located at the center of residential neighborhoods and old commercial districts, traditional retail markets, known as wet markets, have been economic transaction hubs and the center for social activities where people gathered, socialized, and exchanged goods and information [1,2,3]
This study examined cross-sectional data obtained from the Small Enterprise and Market Service (SEMAS): the 2015 Current Conditions of Traditional Markets and Stores
In an attempt to revitalize traditional markets and to keep their functions sustainable, researchers and practitioners have developed a variety of urban policies and subsidy programs [23,27]
Summary
Located at the center of residential neighborhoods and old commercial districts, traditional retail markets, known as wet markets, have been economic transaction hubs and the center for social activities where people gathered, socialized, and exchanged goods and information [1,2,3]. Retail functions are mainly assumed by larger, more agglomerated forms than traditional markets; they are often run by corporate international retailers with highly competitive distribution systems This retail modernization, featured by one-stop shopping at superstores, shopping malls, and large-scale hypermarkets, allowed a significant cut in costs and prices for both customers and retailers [4]. As the point of retail purchase has increasingly moved from the physical to the virtual space, these corporate retailers launched online shopping malls for their own sake Such excessive advancement of the large international retail formats raised concerns over the existence of traditional retail markets and small businesses. Conflicts have been raised between traditional markets and corporate retailers, which is currently one of the most controversial social issues in South Korea
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