Pages 32-35
Under the population decrease and the buying power depression, the traditional reproduction expansion type chain store businesses have been losing their basic growth conditions. Typical established retail stores have enlarged the business size and increased the numbers of stores. However, they facedwith facility productivity decrease caused by overly increased the number of chain stores, also the sales channel shift such as to the Internet stores. The break-even point and the fixed expense level of retail store business are typically high. Under such conditions, enlarged size of business causes higher fixed expenses and limited flexibility of businessmanagements. We name the structural contradictions in business growth as CGP(Chain store paradox). Here we propose the new distribution and retail business theory that is vital under decreased populationmarket conditions. The distribution and retail businesses have beenmostly structured by the limited number of large enterprises and existing lowproductivity retail stores. The remarkable growth of Internet business changed the retail business from traditional retail store business style to the new business functionwhere anybodymay be the player. Changing the distribution and the retail store business to the newlogistic network type of business tiedwith the local area industries and other businesses will provides new age business growth of the distribution, retail business and the local area industries and other businesses aswell.
