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A Study on Competition Analysis in Retail Distribution Industry Using GIS in Seoul

The Journal of Distribution Science / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2021, v.19 no.3, pp.49-60
https://doi.org/https://doi.org/10.15722/jds.19.3.202103.49
YOO, Byong-Kook
KIM, Soon-Hong
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Abstract

Purpose: This study aims to utilize geographic data to analyze how various retail formats of large-scale stores around the traditional market affect the performance of the traditional market in Seoul, Korea. Research design, data, and methodology: The two types of catchment areas were demarcated (circle of 1km radius and Thiessen polygon) for each traditional market, and the large-scale stores located within each catchment area were identified for 153 traditional markets in Seoul, Korea. Additionally, multiple regression analysis was utilized. Results: The results revealed that the influence on the performance of the traditional markets were different depending on the retail format of the large-scale stores. Large discount stores were found to have a negative effect on the sales and the visitors of traditional markets, whereas complex shopping malls and department stores had a positive effect on the traditional markets. Conclusions: As a result of the differences in the retail format such as product categories and leisure functions, the impact of some large-scale stores on the traditional market may have a greater agglomeration effect than the consumer churn effect. Therefore, it is suggested that in the regulation of these large-scale stores, the differences in retail format should be considered for the future.

keywords
Traditional Market, Large-Scale Stores, GIS Buffer and Overlay, Agglomeration Effect

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The Journal of Distribution Science