Performance Analysis for Major Chain Convenience Stores in Taiwan

Abstract

Taiwan is one of the highest density market of convenience stores in the world, and most of the stores belong to certain major chain convenience store systems. Therefore, it is important to analyze the operating performance of these chain convenience stores. This study selects the four largest domestic chain convenience store systems in Taiwan, as 7-Eleven, FamilyMart, Hi-Life, and OK-Mart, for the operational efficiency and comparative analysis. Moreover, this study deploys the data envelopment analysis (DEA) efficiency measurement method for measuring efficiency of these chain convenience stores because of its proved effectiveness in many manufacturing and service operating efficiency analysis. The results of this study show that the operating performance of 7-Eleven is the most efficient due to the economy of scales. However, 7-Eleven should beware of the followed FamilyMart, which owns the 85% relative efficiency compared to 7-Eleven, and may catch up with 7-Eleven if it increases its number of stores.