The purpose of this study is to present countermeasures of site selection to not only openers of convenience stores but also store openers for other business sectors. The countermeasures will be provided by setting up the standards of site selection f...
The purpose of this study is to present countermeasures of site selection to not only openers of convenience stores but also store openers for other business sectors. The countermeasures will be provided by setting up the standards of site selection for convenience stores, and offering implications based on the actual analysis of the relationship between major site factors and sales and profits of convenience stores having recently launched. As the summary of this study, the previous studies have concluded that the residing and floating populations are important site factors for a location of a initial convenience stores with relatively small competition, and the more population gives better position for opening a convenience store. So there opened lots of the new convenience stores at corners of wide intersections of a central downtown trading area to attract the floating population. From 2001~2007 there opened more than 1,100 franchise convenience stores, while only 25 big discount stores started their business per year from 2001~2005. From this study carried out on convenience stores opening in Busan, southern Geongsang province and Ulsan after 2005, it is shown that the most important site factor for a convenience store is contention ratio(competition level), and according to contention ratio of an individual trading area, the influence of the floating population and residing population should be applied selectively for site selection. In some cases, the floating population is inverse proportion to the profit of a convenience store. Among store factors, area and the number of contacting area(for a store at a corner), the length of the front side are significant factors having influence on sales, but because of the current situations of densely distributed stores, the types of roads at the front side and the side of stores don`t have any significant meanings. Although the convenience stores opening in the early days were mainly located in a central trading area with the high floating population and expensive rent, now the convenience stores in these areas have decreasing profits due to intense competition. Therefore there isn`t much correlation between sale and rent per unit.