Systemic Analysis of Competition between SSM and Small-to-Medium Retailers (SMR) in Korea

Jung, Jae-Rim; Kim, Sang–Wook

doi:10.17485/ijst/2015/v8i21/79112

Cited by 1 publication

(2 citation statements)

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“…The new regulation restricted business hours from midnight to 8 A.M., as well as obliged big-box stores to close once or twice a month. A year later, the regulation on the big-box stores strengthened; they should be closed from midnight to 10 A.M., and have days off twice a month on Sunday (Jung, 2015). This regulation was designed to restrict the business activities of large discount stores to help struggling traditional markets and small mom-and-pop stores.…”

Section: Research Method Model Specification and Data Various Effects Of The Regulation Of The Business Hours Of Ldrsmentioning

confidence: 99%

“…The data of sales during these periods are provided from Emart and Lotte Mart. Previous studies (Cho 2014;Cho et al 2015;Choi and Jeong 2016;Jung and Kim 2015;Kim 2016) have not used the real sales data of the large discount chains. Previous empirical findings about the impact of the regulation of the business hours on the size of sales of the mega stores may have problems due to measurement errors.…”

Section: Data Characteristicsmentioning

confidence: 99%

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The Impact of Economic Regulation on Retail Sector: Regulation of Business Hours of Large Discount Stores in South Korea

Jung¹,

Lee²

2017

KJPS

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Recently the large discount retailers (LDRs) including large discount chains (e.g., Emart, Homeplus, and Lotte Mart) and super supermarkets (SSMs) have been at the center of disputes in the retail industries in Korea. The 2012 Distribution Industry Development Act has allowed the head of a city or county to regulate the business hours between large mega-retailers and small and family-run stores in the neighborhood. The regulation of the business hours of the large discount retailers may have heterogeneous effects on their sales depending on various contexts of the market situation. The reduction of the business hours assumes a significant negative effect on the amount of sales of LDRs. However, the degree of reduction may significantly differ from how the LDRs respond to the regulation. The reduction of sales of LDRs is natural if LDRs affected by the regulation do not make any effort to promote sales. On the other hand, if LDRs try to maintain their sales with various marketing strategies and resources, their sales may not decrease and even relatively increase compared to the size of the sales for LDRs that are not affected by the regulation. In addition, although the regulation of the business hours for LDRs can reduce operating hours, their sales may increase due to an increase of market demand in some growing places. For instance, the sales in LDRs located at the market place where new large housings and apartments have been growing may increase. The increasing demand derived from the new population growth can cancel out the decrease of the sales from the regulation of the business hours. Our findings, relying on using DID method before and after the regulation, show three different types of the impact of the regulation change on the sale of LDRs across five regions including decreasing, constant, and increasing patterns.

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Section: Research Method Model Specification and Data Various Effects Of The Regulation Of The Business Hours Of Ldrsmentioning

confidence: 99%

Section: Data Characteristicsmentioning

confidence: 99%

The Impact of Economic Regulation on Retail Sector: Regulation of Business Hours of Large Discount Stores in South Korea

Jung¹,

Lee²

2017

KJPS

View full text Add to dashboard Cite

show abstract

Systemic Analysis of Competition between SSM and Small-to-Medium Retailers (SMR) in Korea

Cited by 1 publication

References 0 publications

The Impact of Economic Regulation on Retail Sector: Regulation of Business Hours of Large Discount Stores in South Korea

The Impact of Economic Regulation on Retail Sector: Regulation of Business Hours of Large Discount Stores in South Korea

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