What Makes an Old Market Sustainable? An Empirical Analysis on the Economic and Leisure Performances of Traditional Retail Markets in Seoul

Abstract

Traditional retail markets have long been the center for urban vitality, yet they have been under threat of advancing superstores run by corporate retailers. Studies have attempted to identify the competitiveness of the markets, but empirical evidence is not sufficient for presenting which factors contribute to the maintenance of a traditional market's economic vitality. In South Korea, urban policies have been directed to revitalizing the markets, but their effectiveness has been questioned. This study aims to fill this void by examining traditional markets in Seoul with multiple regression on (1) the revenue and (2) the volume of customers and with negative binomial regression on (3) the popularity measured by the number of blog posts on the markets. Using a comprehensive set of variables, this paper finds that investments in physical infrastructure (p < 0.000) and organizational/operational capacities (p < 0.008 and p < 0.094) make a significant contribution to the economic vitality. Among product categories, the ratios of perishable food stores were found to be significant (p < 0.000) as well as those of food shops and vendors (p < 0.030). On the other hand, extending convenient facilities and anchor stores would reduce the revenue in the short term. In addition, traditional markets that are recognized as popular destinations may not necessarily be profitable. In this vein, attention should be paid to this mismatch when a strategy is deliberated to transform a market into a tourist attraction.

Does virtual discussion of a retail space affect the economic outcomes of the retail stores? The dynamics among retail environment, economic performances, and the perceived characteristics of the traditional retail markets by bloggers in Seoul

“…YI and GIM T A B L E 2 Common factor analysis of keyness scores: Factor loadings of the perceived characteristics fact, the level of overall physical infrastructure was found to be one of the most significant variables on the markets' average sales outcomes (Yi & Gim, 2018). Next, the operating environment stands for the conditions of a market's general management and marketing status regarding its merchandizing competitiveness; it is constructed with five observed variables: cooperative marketing execution, product quality and displays, stores' tidiness and cleanliness assessed by SEMAS' researchers, and the level of customer service from consumer surveys also conducted by SEMAS.…”

“…First, improved physical conditions of a retail establishment can lead to increased sales outcomes by affecting customers’ perceptions of the store (Kim et al., 2014b; Yi & Gim, 2018). Retail businesses have invested in remodeling their store environment “to influence customer perceptions and choice”; the place where the product is bought is often more influential than the product itself (Hightower et al, 2002).…”

“…In this study, not only the number of parking spaces, but also the physical infrastructure and their conditions were used as observed variables to measure the markets’ physical environment conditions. In fact, the level of overall physical infrastructure was found to be one of the most significant variables on the markets’ average sales outcomes (Yi & Gim, 2018).…”

Cultural Perspective of Traditional Cheese Consumption Practices and Its Sustainability among Post-Millennial Consumers

“…Traditional food products are often recognized by means of association with their regional identity [1] and have always played an important role in the European, especially Mediterranean, culture, diet, and economy. As the new consumer generation of post-millennials is emerging, the biggest challenge for the marketplace [2] is to ensure progress that is proficient, so as to ensure that the current needs for an intact environment, social justice, and economic prosperity are met, without restraining the capacity of future generations to satisfy their desires [3]. The social sustainability [4] of traditional food is addressed in the current article, which focuses on traditional cheese product consumption amongst young consumers.…”

“…In this paper, the authors aim to understand how loyalty towards traditional foods are built amongst young consumers, as previous research shows that younger customers are more concerned about emotional attachment and experiences [35,36] rather than the attributes of products and services. Therefore, the authors use a consumer culture theory (CCT) perspective to examine the following: (1) the way individuals use their traditional products to identify themselves with the culture and feel that they are a part of the community, (2) underlying values that turns young consumers into loyal customers of hellim/halloumi cheese, and (3) its implications to hellim/halloumi producers.…”