Performance Evaluation Of China’s Retail Industry Listed Companies Based On DEA

In recent years, with the rapid development of domestic economy, retail industry has becomethe most active part in domestic trade. Domestic retail companies survived the financial crisissmoothly and recovered rapidly after the crisis. However, this cannot hide the gap betweendomestic retail companies and foreign advanced retail companies on operation and management.Nowadays, China’s retail companies have some problems, such as low management level, lack ofthe modern management concepts and lack of self-dependent innovation ability. Therefore,scientific and effective performance evaluation is very necessary for domestic retail listedcompanies.This paper bases on such a background and uses scientific evaluation methods to evaluateretail companies’ performance. There is important practical significance for helping retailcompanies improve performance level. The contents are as follows:(a) Referring to the existing literature and summarizing the current situation of domesticretail industry and research status of performance evaluation.(b) This paper uses qualitative analysis and quantitative Analysis to choose input and outputindexes that are suitable for performance evaluation of retail listed companies and choosesdecision making units (DMUs).(c) This paper uses BC2model (a model of DEA) to analyse these DMUs and getscomprehensive efficiency (crste), purely technical efficiency (vrste) and scale efficiency (scale)of every DMU. Then we take effective DMUs as reference and put forward improvementdirection for invalid DMUs. Finally, some advices referring to the above analysis are given topromote operational efficiency of domestic retail companies.