As Korean real estate market opens its old closed one, many foreign companies move into Korean market. With the leading domestic corporations, these foreign companies are competitively positioning their large scale department stores, discount stores, ...
As Korean real estate market opens its old closed one, many foreign companies move into Korean market. With the leading domestic corporations, these foreign companies are competitively positioning their large scale department stores, discount stores, and shopping centers in all this republic. In the case of these kinds of stores, the location of those stores greatly affects on the profitability of the properties ; the location of store with good accessability and view to the existing and potential customers increases the profit and its ability of competence as well. Wrong selection of the location may bring about lethal deficit like sales decrease which is hard to overcome even through the good product quality, image enhancement, low price, and aggressive advertisement. For those companies, therefore, to comprehend the structure of trade area and the region is very important key to success. Futhermore, the change of investor's view, such as real estate as an income gain rather than capital gain, increases the importance of income approach in valuation of real estate, and this imposes another great importance on the study of market share of commercial real estate market.
This article aims to presume the market share of department stores in Seoul area through the Huff Model which has been widely used for the analysis of trade area. But two simple variations of this analysis, distance and leasable area, need examinations to fit the Model. This article:
1. Separates the trade areas of those department stores through the theoretical consideration of the Huff Model.
2. Examines the relationship between the expected market share based on practical analysis of Seoul department stores' sales and occupancy rate by sales.
3. Suggests the proper frame of trade area analysis by multiple regression using additional variations, followed by the study on the relative factors affecting department trade area; this is to provide the rational standards in establishing development strategy of large scale commercial facilities like department stores through the time series method in site planning.