Analysis Of The Regional Difference Of Retail Industry’s Operating Performance And Its Influencing Factors

With the flourishing development of Chinese economy, the retail industry develops rapidly, showing a prosperous prospect. Due to the differences in different areas of natural resources endowments, factors of production, industry structure, economic foundation, economic development policy and other factors, retail industry shows non-balanced development and significant regional characteristics. The imbalance of regional development is one of the hotspots of the world’s most interesting issues. In recent years, the coordinated regional development has become an important target for the development of our national economy. In order to achieve the balanced development of the national economy, inter-regional, the coordinated regional development of retail industry is one of the important issues that need to be addressed.Retail industry has a high degree of association with the three major industries, thus the development of retail industry has a great influence on the three major industries. The same time, the retail industry has increasingly contribution to employment. The proportion of the number of employees of retail industry in the social total employees, increased from0.389%in2005to0.69%in2011.The retail industry has become to absorb the most employment industry in many countries of the world. So, unbalanced development of retail industry will affect the local economy and the situation of employment, and the problem reduce regional economic disparities and promote employment in order to improve the income level of residents is also important in our country. Operating performance is an important indicator for measuring the development of an industry. Thus, this article research the regional differences of retail industry and influence factors, the eastern, central and western regions operating performance comparison and trend analysis of changes, through the analysis of influencing factors of the regional differences of the retail business performance, proposed to speed up the development of central and western retail industry, reduce differences with eastern regional in the way.Through the analysis, we draw the relevant conclusions.(1)2000-2011eastern, central and western regional retail operating performance show a rising trend. Each year, the mean of the eastern regional retail operating performance is the highest, followed by the central region. In the full liberalization period of retail industry, retail business performance. grows fastest.2011operating performance of the central region and the eastern region’s operating performance in2009was flat, the central area of retail business performance lagged behind the eastern region for two years, and retail business performance in the western region lag behind the eastern region three to four years. Retail business performance has significant regional differences.(2) Though factor analysis, the nine retail business performance evaluation classified as profitability, growth capacity, operational capability, the solvency.2000-2011, profitability and growth capacity show a rising trend, In the full liberalization period of retail industry, profitability. grows fastest. In the freedom of trade period, growth capacity grows fastest. For profitability, the central area of retail profitability lagged behind the eastern region for two years, retail profitability in the western region behind the eastern region for three years. But for the growth capacity, the growth of the central and western faster in the east. In2011, the growth capacity of the central region is higher than the eastern region. For operating capacity, eastern region is highest, significantly better than the central and western regions. For asset-liability ratio, the various provinces and cities are high, and gave greater operating risks. In addition to solvency, retail profitability, growth capacity and operational capabilities are significant regional differences.(3)The factors that regional economic level, spending power, the extent of foreign investment, the degree of retail competition in the local retail investment, technology management level, have a significant impact on business performance difference analysis validated that the GDP, per capita disposable income, retail level of competition, the degree of foreign investment and local retail investment is the most important factor to affect the regional differences in the retail business performance.Through empirical analysis, the economic level, the per capita disposable income, the most important factor to the retail level of competition, the level of foreign investment and local retail investment regional differences are the most important factors that affect the retail business performance.In order to achieve a balanced development of the retail area, reduce the differences in regional performance,according to the theoretical analysis and empirical analysis, the paper proposes policy recommendations:(1) To accelerate the economic development of western, the increase in per capita disposable income.(2) Appropriate guide foreign raise levels of investment in the western,eastern region are encouraged to invest in the western region.(3) To strengthen the eastern and central and western retail chain operations, accelerate the western retail mergers and acquisitions to achieve economies of scale.(4) Increased retail investment, information management.(5) The eastern, central and western regions retail to the reasonable control of the capital structure.(6) Advancing in the western retail innovation, the development of a diversified portfolio of retail formats.The main contribution of this paper are:(1) the operating performance cores of provinces and cities derived by factor analysis, the regional differences of the retail business performance concrete, the paper compares the regional retail business performance and its variation in2000-2011.(2) This article refers to dummy variables influencing factors performance empirical analysis of regional differences in the retail sector operating performance, pointed out that each region’s GDP, spending power, the degree of competition in the retail business, the degree of foreign investment and local retail investment is the most important factor affecting the retail business performance regional differences.Finally, the paper further prospect. This paper, research the difference of three major regional retail business performance, through factor analysis, the paper has got operating performance scores for the2000-2011years of the31provinces and cities. Due to the differences in different provinces and cities of economic foundation, economic policy, production elements and other factors, this paper can analysis the31different provinces and cities retail industry operating performance and trend analysis of changes, can also analysis the influencing factors of the31different provinces and cities’differences of the retail business performance. This paper make the regional differences of the different retail formats operating performance as a follow-up study.