Do Retail Regulations Protect Traditional Markets as Well as Independent Stores in Korea?

Purpose -This study is to measure the effects of retail legislations on small retailers and traditional markets. Research Design, Data, and Methodology - The authors have developed a questionnaire with five hypotheses on the basis of previous research results and six constructs: the improvement of sales volume, the number of customers, the improvement of store traffic, the increase of store staff, business expansion and retail regulation. Furthermore, the research has adopted a five-point Likert-scale technique. In order to increase research reliability as well as validity, the authors have adopted a few different research techniques such as exploratory factor analysis (EFA) and confirmatory factor analysis (CFA). Results - Although existing retail regulations might be better than nothing for now, the degree of retail constraints on large retailers should be strengthened. Furthermore, different legal methods to protect mom and pops are needed. Conclusions - In order to improve the effects of retail restrictions on large retailers, the research indicates that the central government should change a retail policy, that is, introduce new technical ways to keep mom and pops and conventional markets.