Research On The Scale Expansion Of Chinese Retail Chain Enterprises

In recent years, the scale of China retail industry continues to expand, and has become one of the most competitive industries. But it is still at a low level of market concentration, the number of enterprises is large but the scale of individual is small. China retail industry is in a state of inefficient competitive. How to make the retail industry achieve economies of scale becomes an urgent issue, this paper aims to explore ways to achieve economies of scale retail, to provide a theoretical reference for the development of China retail industry.The paper firstly describes the basic theory of the scale expansion of retail chain enterprises, including retail enterprises expansion mode theory, theory of chain retail enterprises, performance incentive theory and theory of retail enterprises scale boundary. Based on this, the author analyses the situation of China retail scale expansion from the perspective of SCP. Then, concludes that: China retail market concentration has increased fast, but still remains at a low level, also has a large gap with the developed countries; the retailers step up the pace of expansion, the expansion mainly shows multiple industry state expansion, cross-regional expansion; and the data shows that the profitability of Chinese retail chain enterprises generally poor, the risk of them increases year after year.Secondly, the author analyses the factors which influence the scale expansion of Chinese chain enterprises by an empirical model. The article uses the 22 listed retailers as the research object; selects the market performance system, industry state and the age of enterprises as independent variables, the scale as dependent variable. The paper uses factor analysis while dealing with the market performance of 13 indicators. And concludes that different indicators of market performance has different influence on scale of enterprises; the retail chain enterprises are also influenced by the industry state.Finally, the paper gives some recommendations based on the situation of the scale of expansion of Chinese retail chain enterprises and the conclusions of empirical model: retail enterprises should actively adjust their strategy to ensure the effectiveness of large-scale expansion, including modernization of the business model strategy, diversification and innovation of industry state strategy, optimization of capital structure strategy.