Research On The Location Of Home Improvement Store

The development of economy and upgrading of people’s living standard create more and more demand for home improvement service, so that the home improvement market has made a great progress. During the past 20 years, the home improvement market has seen soaring competition among the companies of national, regional and local strong brands. In some cities and areas, some home improvement stores have to be closed so that the market is left empty due to the extremely keen competition.The home improvement market has low-frequency visiting but hard demand by the customers. In some time the market demand is relatively stable no matter how the number of stores changes. In one city or area, the demand for home improvement products is relatively stable. Costs fixed, the total supply in the market will reach its balance point. In order to develop and obtain much more market share, some national-wide and local competitive home improvement companies extend their market area. They not only open stores in the cities where they have no business, but also in the cities where they have had stores. Therefore where to open store is a problem for those companies. The reasonable location of store determines the following performance. However, the unreasonable location is very common in the home improvement market, some stores go to bankruptcy due to that reason.Combining with the features of home improvement industry, this paper tries to find out the elements affecting the locating of home improvement stores by analyzing domestic and abroad locating theories, especially the business location.The creative idea in this paper is that we make quantitative analysis on the elements affecting locating of home improvement stores. We quantify the staff’s experiences to help make scientific decision on choosing location and avoid the blindness to the best. Although this quantitative analyzing method has not been complete yet, it fits for the current situation of Chinese home improvement market and is easy to use in real practice to help scientifically choose business location.