Nadle Store is a new shopping culture for customers who used to shop at the SSM (Super Super Market). “Nadle” literally means “a trip” in Korean. The purpose of building the Nadle Store is that customers can visit the market like a trip bringing out lots of happiness. People might believe that local markets are not as great as big scaled markets like Homeplus and E-mar t in Korea. However, local markets have many advantages such as managements, facilities, quality of products and services, which are emphasizing the advantage of locality. This is because Nadle Store focuses on the locality to satisfy the varied customers. Many efforts have been made to improve the merit of the traditional market ever since 2009, the starting year of Nadle Store. Even though, there are also some drawbacks of Nadle markets. We can have positive perspectives on the future development of Nadle Store when people get accurate information about the Nadle Store.

 
 

   Why did Nadle Stores Start?
   These days SSM (Super Super Mart) has a great influence on the lives of people. For example, the merger between Homeplus and Homever brought a huge surplus to Homeplus, and they founded subsidiary companies such as Homeplus Express and Homeplus Life-long Education Center. Moreover, warehouse stores founded by foreign companies are increasing the share of the market. As a result, SSM exerts a greater influences on our lives than before and they have grown into a nation-wide scale. Afterward, SSM can simply control the price of the product. SSM stretches its influence not only on the market economy but also on the manpower of the local area. As conglomerates advanced into the mart industry, the small local stores are automatically losing their share in the markets. Consequently, lots of small local stores were forced out of business. Someone might say this situation is natural thing in a market economy; however, the owners of small stores are almost in danger of bankruptcy. To protect the local business, the government partly intervenes into the market economy. The two government related groups, the Small and Medium Business Administration (SMBA) and Small Enterprise and Market Service public corporation (SEMS) planned to implement the “Nadle Store” as an effort of protecting the local stores. They support the small retailers with consulting programs and an improvement in accommodations. People can easily find Nadle Stores in their local areas. As Nadle Store is run by small separate retailers, the title of stores can be different. However, they use a Nadle Store logo in a front sign with the name of the store so people can recognize whether the mart is Nadle store or not. In Yuseong-gu, Daejeon, where Chungnam National University is located, there are 47 Nadle Stores (290 in Daejeon). It is not hard to find a Nadle Store if people take more attention to these stores.

   The Expansion of Nadle Store
   “Each store in a local alley is small and its influence is also small. However, if we are in the group of ‘Nadle Stores’ we can have powerful strength,” Mr. Lee who is the owner of “Bingrae Thank Q mart” said about Nadle Stores. When local retail traders apply to be a Nadle Store, there is a sort of checking system which mainly looks at how the stores are managed. They need to get approval to have the title of Nadle Store. The application form can be downloaded from the official website of Nadle Store and anyone can access to the site. This open system leads local retail traders to move easily toward the Nadle Store. When a store gets the title, small changes are being made, which can bring a great success.

   What Happens When a Mart Becomes Nadle Store?
   There are some changes when a single mart becomes Nadle Store. First, there would be some external changes of the store. An insertion of the logo of Nadle Store is added on to the store’s sign which is hanging in front. After, the sign gets much neater by cleaning the dirt. As the sign changes into the new form, it is possible to get more attention from customers. Most importantly, the way of deciding the price changes. Generally, local retail traders just decided the price by just a rule of the thumb. After getting a support, they get a comfortable sailing system and it is run by a computer system called POS which is a short of point-of-sales. POS automatically calculates sales and predicts the profits. After installing the computer system, shop owners can display inventory in smart ways. For example, if POS predicts that people prefer product A more than product B, retailers can stock product A more and it will lead to the better inventory management. Besides, the owners get to know the number of products and use this information for the next order. After changing into a Nadle Store, the display stand of market changes as it considers the moving line of customers. Many retail traders changed their display stand from horizontal line to the vertical lines. It also leads to convenience of shopping.

 
   Second, the Small and Medium Business Administration (SMBA) provides an education service for small retailers. The aim of the education is to help them to have a management mind. Because of this education in management, retailers can learn how to make a better management plans and develop a marketing strategy. Also to compete with Super Super Market (SSM), Nadle Stores make a group to purchase the product together. They can get the same product by lower price. Through the group purchasing system, owners can share the information about purchasing route. When there was no group for purchasing, retailers have to buy products by the price only suggested by suppliers. As the price gets lower by the group purchase system, Nadle Stores have the competitive price compared to the other big markets.

 

   Have Nadle Stores Produced Fine Results?
   The government’s core business project to activate the local business, the Nadle Store, is being criticized as “window-dressing for the administration”. Senuri Party’s Rep. Kim-Han-pyo analyzed and showed the data from Small and Medium Business Administration (SMBA). The government invested a total of 75,000,000,000 won during the last 5 years and 1,086 of Nadle Stores were closed, which is about 12% of the total number. This result shows that the Nadle Store is not working as well as predicted. The Small and Medium Business Administration (SMBA) made a goal to open 10,000 Nadle Stores from 2010. Nevertheless, it seems that the SMBA is striving to increase only the number of Nadle Stores. In fact, 80% of the budget is used for the first-opening progress and the rest is used for post management and infrastructure construction. Some specialists criticize the improper use of financial budget which doesn’t care about the later prosperity. Hence, it is possible to say that the SMBA has failed to strengthen the autonomy of local stores. It is not easy to survive between major supermarkets by executing the budget like this. Though the forced closure of SSM has started, not all the local stores are better off.

   Can Nadle Stores and SSM be harmonious?
   In recent days, the supermarkets having the title of Nadle Store have rapidly increased. As local store owners who run Nadle Stores are supported by the government, they are finding effective ways of management in various ways. Strategies that fit the local situation are needed to survive against the influence of SSM. In addition, the government should design the long-term investment plan to support the local business in the fields of the trade, sale stock management, attentive consulting program and local infrastructure construction. In order to make the Nadle Store grow in the domestic local market, government and retailers should keep moving forward for the growth. Finally, the customers who have the right to shop anywhere, should be a rational consumer. Individuals should have to figure out what they can do for the harmonious growth of Nadle Stores and SSM. 

 

 O Se-rin | By CP Cub-Reporter

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