An Empirical Study Of Retail Format And Enterprise Performance

The reform and opening up policy lead to a rapid and steady development of Chinese retailing that has become the key link of commodity circulation. Compared with that of the western developed countries, the development of China's retail formats has its distinguishing characteristics. Firstly, there is no obvious regularity in the development of the Chinese retail format; secondly, the introduction of retail format to China just copies the development model of retailing forms of western countries, failing to grasp its essence. But the selection of retail formats is an important component of the strategic development of retail business, and choosing a correct retail format will produce an important impact on the development of the retail business.This paper takes the listed companies of retail industry in China as a sample. It finds that the scale of retail enterprises has a positive influence on its performance. After the expansion of the retail format, retail business has a negative impact on the enterprise's performance, in specific, it is represented as business performance decreases and the operating costs increase. When the retail business grows stable, there is a significant difference in business performance between the retail enterprises run in diversification and those operated in professionalism.