A Study of Kosa Mart Re-design for the Development of Nadle Stores

Purpose - In general, large companies have larger organizations, funds, and systems to provide more effective and efficient services in the market. However, development needs to support the livelihood of ordinary citizens who work for small businesses as well. This research suggests that a new distribution channel, called a “foothold style Kosa mart,” that cooperates jointly with a distribution center and a large discount mart can provide direct solutions to small and mid-size distributors. This new distribution channel can achieve a limited type of “Nadle shop (small supermarket) foster project” related to building a joint distribution center and improvement in wholesale supply. Research design, data, and methodology - Data about the Korea distribution situation, the Nadle stores, and the logistics centers were collected from literature, Statistics Korea, journals, and reports. Specifically, we investigated information about Kosa Mart and Nadle stores. We focused on the redesign of the distribution center for the Nadle store. Results - The Kosa Mart distribution center now includes 18 warehouses, and has been handling 2000–3000 items. Most of the warehouses have been simply designed and items loaded and stored without refrigeration; thus, it is possible to store only products of certain manufactured goods. The current logistics center has no wholesale function because it failed to resolve the joint purchasing and product supply issues of competitively priced products. Conclusions - This study aimed to identify ways to strengthen the competitiveness of small- and medium-sized retailers. A Kosa Mart redesign aims to unifying the logistics center, stores, and customers. First, the joint wholesale logistics system, equipped with an integrated ordering system, needs to process customer orders and store orders at the same time. Second, excellent small business product development has to connect with production. Third, the store composition needs to support a