Abstract

Service retailers have to develop a large number of outlets to cover geographic markets and they also have to manage their store networks effectively. However, they are not studied enough both what types of strategic options for store network management are there in the domestic context and how the way of store network management affect corporate performances depending on their situation. This research attempts to clarify the relationship between market expansion strategies of service retailers and their corporate performances by analyzing 51 Japanese listed food service firms as well as to give some implications regarding how they should manage store networks to attain the highest profitability and efficiency. Main results are (1) It is assured over time that Proactive Expansion and Dispersed National Expansion are more profitable and more efficient in using assets to generate earnings compared to Local Concentration, and (2) Proactive Expansion has been the most profitable strategy, while Dispersed National Expansion became the most efficient strategy in using assets to generate earnings instead of Proactive Expansion in these two years.

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