Efficiency Analysis of Retail Chain Stores in Korea
Abstract
:1. Introduction
2. Literature Reviews
3. Methods
3.1. DEA
3.2. Data
3.3. Input/Output Measures
3.4. DEA Models
3.5. Tobit Regression Model
4. Discussion of Results
4.1. Efficiency Scores
4.2. Comparison of Efficiency
4.3. Tobit Regression Model
4.4. In-Depth Analysis of Significant Variables
4.4.1. Number of Items per Employee
4.4.2. Number of Competitor Stores
5. Conclusions
Author Contributions
Conflicts of Interest
References
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Studies | Units | Inputs | Outputs |
---|---|---|---|
Donthu and Yoo (1998) | 24 outlets of a USA fast food restaurant chain | Store size, Store manager experience, Store location, Promotion expenses | Sales, Customer satisfaction |
Thomas et al., (1998) | 520 outlets of a USA multi-store, multi-market retailer | Full-time employees, Full-to-part-time employees, Salaries, Employee tenure, Store manager tenure, Store age, Occupancy expenses, Population, Household income, Households, Proximity, Inventory, Transactions, Employee turnover, Shrinkage | Sales, Profits |
Keh and Chu (2003) | 13 outlets of a USA grocery store chain | Labor (floor staff and management wages and benefits), Capital (occupancy, utilities, maintenance and general expenses) | Intermediate output: Accessibility, Assortment, Assurance of product delivery, Product information, Ambience Final output: Sales revenue |
Barros and Alves (2003) | 47 outlets of a Portuguese hypermarket retail company | Full-time employees, Part-time employees, Cost of labor, Absenteeism, Area of outlets, Number of points of sale (POS), Age of the outlet, Inventory, Other costs | Sales, Operational results |
Sellers-Rubio and Mas-Ruiz (2006) | 100 supermarket chains in Spain | Employees, Outlets, Capital | Sales, Profits |
Mostafa (2009) | 45 USA retailers | Employees, Assets | Revenue, Market value, Earn share |
Gupta and Mittal (2010) | 43 outlets of a Indian grocery retailer | Area of outlets, Number of SKU(Stock Keeping Unit)s, Number of POS machines, Labor cost of employees, Number of employees, Working hours of employees | Sales, Customer conversion ratio |
Sharma and Choudhary (2010) | 200 Indian retail stores | Size of retail store, Manager‘s experience, Location of retail store | Sales, Customer satisfaction |
Studies | Units | Inputs | Outputs |
---|---|---|---|
Barros (2006) | 22 hypermarket and supermarket firms in Portugal | Labor, Capital Tobit regression model variables: Share, Outlets, Ownership, Regulation, Location | Sales, Operational results |
Perrigot and Barros (2008) | 11 French generalist retailers | Labor, Capital, Total costs Tobit regression model variables: Trend, Square trend, Quoted, mergers and aquisitions (M&A), Group, International | Turnover, Profits |
Yu and Ramanathan (2008) | 41 retail companies in the UK | Total assets, Shareholders funds, Employees Tobit regression model variables: Head office location, Types of ownership, Years of incorporation, Legal form, Retail characteristic | Turnover, Profit before taxation |
Yu and Ramanathan (2009) | 61 retail firms in China | Total selling floor space, Employees Tobit regression model variables: Head office location, Firm nationality, Years of incorporation, Ownership type, Retail characteristic | Sales, Profit before taxation |
Uyar et al., (2013) | 79 bookshops within a bookshop chain in Turkey | Area, Population, Inventory, Employee, Salaries, Other costs Tobit regression model variables: Education of manager, Experience of manager, Experience of staff, Age of bookshop | Sales, Profit |
Gandhi and Shankar (2014) | 18 Indian retailers | Cost of labor, Capital employed Tobit regression model variables: Number of outlets, Ownership, Age since incorporation, Mergers and acquisitions | Sales, Profit |
Variables | Minumum | Maximum | Mean | Standard Deviation |
---|---|---|---|---|
Inputs | ||||
Store size | 22 | 218 | 103.9 | 51.6 |
Number of items | 4177.00 | 20,939.00 | 12,156.40 | 3460.70 |
Number of employees | 6 | 23 | 12.9 | 3.9 |
Rental cost | 1061.60 | 30,020.20 | 8603.70 | 5485.70 |
Outputs | ||||
Sales revenue | 1672.00 | 10,999.00 | 4651.20 | 1872.10 |
Number of customers | 305 | 1636.00 | 831.3 | 287.6 |
Tobit model variables | ||||
Store age | 12 | 98 | 45.4 | 22.1 |
Number of items per unit area | 73.1 | 273.1 | 135.4 | 50.9 |
Number of items per employee | 522.1 | 1789.70 | 981.2 | 288.5 |
Trade area index | 0.314 | 0.757 | 0.479 | 0.113 |
Number of competitor stores | 14 | 57 | 34.8 | 11.9 |
Variables | Estimate | Std. Error | z Value | p-Values |
---|---|---|---|---|
Store age | 0.0011525 | 0.0015299 | 0.753 | 0.45128 |
Number of items per unit area | 0.001473 | 0.0007993 | 1.843 | 0.06536 |
Number of items per employee | −0.0004210 | 0.0001429 | −2.945 | 0.00322 ** |
Trade area index | −0.3490104 | 0.3113706 | −1.121 | 0.26234 |
Number of competitor stores | 0.0067086 | 0.0025178 | 2.664 | 0.00771 ** |
R-Squared = 0.6469811, Adjusted R-Squared = 0.5790929 |
Variables | Estimate | Std. Error | z value | p-values |
---|---|---|---|---|
Store age | 0.0008127 | 0.0014315 | 0.568 | 0.57024 |
Number of items per unit area | 0.0014026 | 0.0007522 | 1.865 | 0.06224 |
Number of items per employee | −0.0004082 | 0.0001345 | −3.036 | 0.00240 ** |
Trade area index | −0.3134973 | 0.2904058 | −1.080 | 0.28036 |
Number of competitor stores | 0.0325403 | 0.012631 | 2.576 | 0.00999 ** |
Square number of competitor stores | −0.0003695 | 0.0001767 | −2.091 | 0.03655 * |
R-Squared = 0.6469811, Adjusted R-Squared = 0.5790929 |
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Ko, K.; Chang, M.; Bae, E.-S.; Kim, D. Efficiency Analysis of Retail Chain Stores in Korea. Sustainability 2017, 9, 1629. https://doi.org/10.3390/su9091629
Ko K, Chang M, Bae E-S, Kim D. Efficiency Analysis of Retail Chain Stores in Korea. Sustainability. 2017; 9(9):1629. https://doi.org/10.3390/su9091629
Chicago/Turabian StyleKo, Kyungwan, Meehyang Chang, Eun-Song Bae, and Daecheol Kim. 2017. "Efficiency Analysis of Retail Chain Stores in Korea" Sustainability 9, no. 9: 1629. https://doi.org/10.3390/su9091629