CONCENTRATION of the RETAIL NETWORK in RELATION to the CONSUMER SHOPPING BEHAVIOR in REGIONS of the SLOVAK REPUBLIC - Polish Journal of Management Studies

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CONCENTRATION of the RETAIL NETWORK in RELATION to the CONSUMER SHOPPING BEHAVIOR in REGIONS of the SLOVAK REPUBLIC

Abstracts > Vol 8

CONCENTRATION OF THE RETAIL NETWORK IN RELATION TO THE CONSUMER SHOPPING BEHAVIOR IN REGIONS OF THE SLOVAK REPUBLIC
Kotulič R., Marchevská M.  

Abstract: Issues of the retail development and its influence on the region is currently considered as particularly topical taking into account the economic attenuation in the world. The appreciation of the development of retail networks in regions of the Slovak Republic was conducted based on selected indicators of concentration. The concentration of retail units resulted in the increase of the average sales area, growth of supermarkets, hypermarkets and retail chains. From the geographical perspective, it is possible to understand the concentration as the ability of companies to center and further develop in areas with other companies present. Based on the analysis of the concentration of the retail network in regions of the Slovak Republic conducted, it can be stated that the Bratislava region demonstrates a significant dominance in the monitored period. This dominant position of the Bratislava region is in accordance with classic localization theories, mainly the theory of central cities by W. Christaller developed by J. Friedmann with the theory of the polarization evolution according to which the economic growth of the country can be strengthened by the hierarchical system of cities and their functional regions.

Key words: retail-trade, concentration, shopping behavior, retail network localization

Introduction

Because of transformation changes, the retail-trade industry underwent through significant changes influencing mainly the shopping behavior of consumers. The development of large-scale retail-trade networks brings many positive but also negative matters directly affecting the population. On one side, there is the shopping behavior of consumers seen as a favorite activity connected to relax and spending of free time with friends; on the other hand, there is the large number of ill-situated large-scale units acting as negative externalities not only concerning the environment but also negatively influence the city population lifestyle near these titans. Colossal walls stand on lawns, parks and potential children playgrounds. It is important to capture problematic aspects of the construction of these units concerning the concentration and to respect the regulation and planning of the retail-trade in the SR.
The first large-scale stores of foreign retail chains were introduced after an extensive privatization and liberalization of the economic environment sometime during the first half of the 1990s. This first phase of the transformation of the consumer behavior was based on the development of the first supermarket chains built mainly on greenfield. [4] [8]
The concentration of retail-trade units resulted in the increase of the average sales area, the increased number of supermarkets, hypermarkets and retail chains. In the 1990s, large-scale self-service stores register the biggest concentration: Baumax, Ikea, Metro, Kaufland, etc. Currently, we are a witness to an ever-growing number of retail-trade units that are a result of “concentration tendencies in the business”. The outcome of the concentration is the centering of the capital and a following increase of sales shares in the environment of as small number of large-scale chains as possible. The most monitored forms include: retail-trade concerns, franchise units, voluntary chains and retail cooperatives and chains stores. [6]
The retail-trade is understood as a sum of all activities immediately connected to the sale of goods or providing of services to final consumers. [10] The retail-trade can basically be seen as a decentralized sale of consumer goods in a larger number of deployed trade units. Primary purchasers are considered households and individuals. [1] The Statistical Office of the Slovak Republic includes under the term of retail-trade the sale of new and used goods for personal or a household use. The retail-trade also includes the sale of typewriters, stationery, paint or timber, although these products may not be considered for the personal or household use. The retail-trade usually does not include the sale of grain, ore, petroleum, industrial chemicals, iron, steel, industrial machinery and equipment. This sphere also includes repairs of goods of personal or household use. [10]
In the scope of the layout of the retail network, there are three basic principles of its formation: (1) the relative uniformity and concentration of the retail network reflecting the balance between the purchasing power of the population and capacities of the retail network; (2) the hierarchy of the retail equipment which represents the hierarchy of the frequency of satisfying the needs of the population with products of everyday consumption; and (3) the complexity of the retail equipment closely connected to levels of facilities (precinct, perimeter, borough and central facilities), i.e. the higher level of facilities should satisfy also the demand on the lower level of facilities. [10]
Generally, the concentration represents the centering of trade activities, companies around one center. From the geographical perspective, the concentration is defined as the ability of companies to center and further develop in an area with other companies present. The level of concentration can be expressed from the perspective of: (1) the concentration of production which is expressed through the indicator of the companies
share on the total amount of the production; (2) the concentration of population which represents the percentage of urbanization of the country and the share of large cities; (3) the concentration of business ventures reflecting the increase of the areal size of enterprises, the increase of the share of large-scale retail-trade units of the retail sales and the increase of the share of companies of the sales. [16]
The concentration of the retail network in the region is represented through selected indicators like: operating standard reflecting the number of residents of the monitored region attributable on one retail worker; areal standard representing the number of residents of the monitored region attributable on one retail worker; density of the retail network expressing the number of companies per 100 km2 of the monitored region; utilization of the retail space representing the amount of revenue produced on one square meter of the retail space; labor productivity reflecting revenues for one calendar year attributable on one retail worker. [14]
Several international studies concerning the consumer behavior state that as much as 70 per cent of purchasers indicate hypermarkets, supermarkets and discount stores as theory main purchasing space where people spend their savings for groceries and drugstore goods. The most popular are hypermarkets with a 29 per cent share of mentions of household purchases in the monitored region. Discount stores with a 23 per cent share of household purchases follow them. The supermarkets are on the level of 19 per cent. In the Slovak Republic, the most popular are retail stores like: CBA, COOP jednota or FRESH with the highest spending of 34 per cent of polled households. Czechs shop most frequently in hypermarkets (44 per cent), Slovenians in supermarkets (47 per cent) and Poles prefer discount stores (36 per cent) in comparison with other purchasing places. [5]
Shopping centers are usually frequented by younger purchasers up to the age of 35 years, mostly economically active and mainly during weekends. A lower frequency is recorded among seniors whose peculiarity is the dominant form of the so-called net shopping without the use of additional services. This is not surprising from the perspective of the basic information since the increased consumption is connected with the increase of the social status. A typical teenage behavior is represented by the viewing of goods and windows without any purchase, this being mainly the question of the financial background and shopping centers becoming their place to wander around, meet friends or to be seen by their friends (to be “in”), which is proven in several studies. [8] [14]
During last years, the combination of the economic growth and the population growth not only in developing markets but also in less developed markets fastened the process of the globalization of the retail. [11] In this world “corporations or alliances” at all places use cheap resources of raw materials and the cheapest production costs from the point of view of the sale. Thus, they help to increase the prosperity of the country or region they operate at which follows the international trade. Activities between subjects in the scope of the global business are mutually complementary. In the scope of the world, the capital searches for a cheap labor force, new products and markets. [12]
In the initial phase of the business, the retail business-owner should account for the specifics of the consumer market or otherwise they may be rejected by the market. “At the entry at foreign markets, retail business-owners exercise at first the multinational form and after the successful establishment on the market they move to the realization of the global strategy”. [16]

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Summary

The issue of the development of the retail-trade and its influence on the region is currently considered as extremely topical bearing in mind the economic attenuation in the world. The evaluation of the development of retail networks in regions of the Slovak Republic was realized based on selected indicators of concentration.
It is clear that some regions expanded in the monitored period (they became more developed in the scope of the retail-trade), and they exchanged places comparing the 2001 to 2010. The retail-trade in regions of Slovakia is thus becoming a structurally fluctuating sphere that is influenced mainly by socio-economic, socio-demographic and geographic factors.
On the basis of the analysis of the concentration of the retail network in regions in the Slovak Republic conducted, it is possible to state that the Bratislava region is the most dominant in the monitored period. This dominant status of the Bratislava region is in accordance with classic localization theories, mainly the theory of central cities by W. Christallera developed by J. Friedmann with the theory of the polarization evolution according to which the economic growth of the country can be strengthened by the hierarchical system of cities and their functional regions. The strengthening of the hierarchical system of cities results in the selection of centers of the growth which does not guarantee the achievement of the convergence. [13] [2] [3] [9]
It is highly probable that at a further generalization of relations between the shopping behavior of consumers and trade offers the concentration in the sphere of services in the retail will grow which will result in the graduation of the competitiveness among retail companies and the endeavor for a meaningful innovation will be the question of the future aim and consecutive survival in the industry.


References

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KONCENTRACJA NA SIECIACH DETALICZNYCH W ODNIESIENIU DO ZACHOWAŃ KONSUMPCYJNYCH W REGIONACH REPUBLIKI SŁOWACKIEJ

Streszczenie:

Kwestie rozwoju sprzedaży detalicznej i jej wpływ na sytuację w regionie, są obecnie uważane za szczególne kwestie, biorąc pod uwagę zahamowanie rozwoju gospodarczego na świecie. Aprecjacja rozwoju sieci detalicznej w regionach Słowacji, została przeprowadzona na podstawie wybranych wskaźników koncentracji. Koncentracja jednostek detalicznych spowodowała wzrost poziomu sprzedaży, zwiększenie liczby supermarketów, hipermarketów i sieci handlowych. Z geograficznego punktu widzenia, możliwe jest rozumienie koncentracji jako zdolność przedsiębiorstw do scentralizowania i dalszego rozwoju w innych obszarach. W oparciu o przeprowadzoną analizę stężenia w sieci handlu detalicznego w regionach Słowacji, można stwierdzić, że region Bratysława wykazuje znaczną przewagę w badanym okresie. Ta dominująca pozycja regionu jest zgodna z klasycznymi teoriami lokalizacji, głównie teorii W. Christaller’a o centralnych miastach, opracowanej przez J. Friedmann, z teorią ewolucji polaryzacji zgodnie z którą wzrost gospodarczy kraju, może zostać wzmocniony przez hierarchiczny system miast i ich regionów.

Słowa kluczowe: handel detaliczny, koncentracja, zachowania konsumpcyjne, lokalizacja sieci sprzedaży

零售網絡有關消費者購物行為的斯洛伐克共和國各地區集中

摘要:零售業發展及其對本地區的影響力的問題是目前被認為是特別外用考慮到經濟衰減的世界。零售網絡的發展,在斯洛伐克共和國區域升值是基於集中選定的指標進行。零售單位的濃度導致平均銷售面積,生長超市,大賣場和零售連鎖店的增加。從地理角度看,它是可以理解的濃度為公司居中,並進一步發展與目前其他公司方面的能力。根據斯洛伐克共和國進行的區域零售網絡的濃度進行分析,可以說,布拉迪斯拉發區域顯示在監控期間顯著的優勢。這種顯性的布拉迪斯拉發地區的位置是按照經典的本土化理論,中心城市的主要理論由W.克里斯塔勒根據該國的經濟增長可以通過加強由J.弗里德曼開發與極化進化論城市及其功能區的分級制度。
關鍵詞:零售貿易,濃度,購物行為,零售網絡定位。

 
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