earticle

영어

This study is focused on the higher survival rate of brand stores than general stores under competitive market environment with excess competition which results in frequent closing of stores. Survival analysis is used to compare the closing risk between brand stores and general stores so that the effect of brand on survival and closing of stores can be analyzed empirically. For the survival analysis, total 2,844 data of newly opened F&B stores in 2011 was used from Seoul business license record and the stores are located in 241 major Seoul retail market. According to Kaplan-Meier method on survival function of brand store and general store, the survival rate of brand store shows a marked difference after 500 days of opening and gets higher as days go by. Multivariate analysis using Cox-proportional hazards model also indicates the closing risk of brand stores is 0.761 times of general stores. As a result of several analyses, it can be explained that brand stores have higher competitiveness than general stores by having more loyal customers and supports from head office. And this means brand can be one of important strategies for the stores to survive under highly competitive market environment.