Tesco in Korea: Regulation and Retail Change

摘要

In South Korea, rising resistance has slowed the advance of global retailer Tesco to the advantage of traditional shopping locations. In 2013, Tesco claimed that retrospectively-applied Korean Sunday trading regulations reduced its trading there by 8 per cent. We utilised secondary sources and also conducted an empirical survey of 1,092 consumers in 22 Korean cities to assess reactions to this regulatory change and found evidence of spatial switching back to traditional locations. Our Korean respondents supported the new Sunday trading restraint. Such an outcome would not be expected in those Western countries where further liberalisation is still promoted. Also, the poor trading figures announced by Tesco-Homeplus in 2013 imply that Homeplus never fully adjusted to the Korean market. Issues of society and culture continue to challenge commercial innovations: with spatial implications.