Study On Supermarket Location And Its Influencing Factors

Supermarket originated in America in the 1930s. In China, supermarket emerged and developed quickly in the 1990s. This novel retailing enterprise is accepted as a preferred purchasing method because it suits the changes of consumption and purchase behavior of people. Supermarket in china grows with an annual rate of 70% on average and the sales revenue of chain stores accounts for 5% to 7% of the total amount of the societal retail commodity revenue. The location of supermarket is the key to successful marketing and operation because it affects the return of investment and the growth of the enterprise. This paper uses 60 medium-sized supermarkets in Beijng as samples, studies empirically the behavior of location, estimates the factors influencing location by log model and analyzes the effects of those factors on location.Four factors affect the supermarket enterprise: external environment, consumers, internal strength, competitors. The estimating outcome of the model tells us that the more thriving and expensive locations the businesses choose and the more people the nearby entertainment places attract, the better the marketing performance will be. The initial capital investment is positively correlated with the revenue and profit. The turnover of supermarket correlates positively with convenience of the nearby transportation, but negatively correlates with the number of competitors and the scale of business. The income level of the residents has positive correlation with the operational performance of supermarkets. According to the research results above, several suggestions are put forward. The government should make the appropriate layout for supermarkets and facilitate the development of the business. The supermarkets themselves should make good preparations for the project and investment budget.