Hola Rite Home Chain Of Retail Shop Strategy Research

In modern retailing industry, chain store model is the most widely used one. This model can achieve economies of scale through expanding operational size. And also can advance the bargaining power, reduce procurement costs, centralize resources, and increase visibility to enhance the popularity. Store opening strategy has become the successful factor of retailing chain store because the demand of continuing expansion, and the high cost and long-term of store opening decision.Hola Retail Co., the company which the author works in, is the chain store model of Home-Deco. Its main claims are the convenience of one-stop shopping, the unique of merchandise and the warm services to the customer. The company is the new format of the retailing chain stores. The author studies Hola Retail Co. as the research object. The research defines the suitable type of trade area and store acreage through discussing series of theory, and understanding of the company's overall positioning and store opening strategy. The research calculates profit of each possible type of stores in accordance with the existing experience and estimation of future development estimates. The standards of measuring suitable store types are the internal rate of return and average return on equity.By the discussion of each chapter and the results of analyzing and calculation, the main conclusions of this research were as follows:(1)Retailing chain stores need to combine the store positioning, the principle of site selection, the reasonable forecast of future development, and the planning of human resources and capital to define the correct store opening strategy and establish of business success.(2)The company needs to adjust store types which are worth to develop because of the change of per capita in China and consumption habits. In the short-term, the company focuses on developing the shopping mall-type stores mainly in mature trade area. In the medium and long-term, it should change to develop destination-type stores because these stores have higher average ticket and can bring greater benefits to the company.