Campus Units

Supply Chain and Information Systems

Document Type

Article

Publication Version

Published Version

Publication Date

2010

Journal or Book Title

Journal of Food Distribution Research

Volume

41

Issue

2

First Page

46

Last Page

57

DOI

10.22004/ag.econ.139056

Abstract

This research evaluates the effects of entry by supercenters and warehouse club retailers on the location of retail grocery sales. Drawing on location theory and empirical works, spatial econometric convergence models are specifi ed and estimated. Because grocery shopping is generally a local phenomenon, the spatial models are used to capture spillover effects between geographical areas. The results show that supercenter and warehouse club retailers have a signifi cant and large effect on growth of grocery sales, especially in low population areas. The results suggest that the large stores are new grocery distribution channels, which are changing where consumers shop for groceries.

“There’s a lot more business out there in small-town America than I ever dreamed of.” —Sam Walton, Founder of Wal-Mart

Comments

This article is published as Martens, B. J., Dooley, F., and Florax, R.J.G.M. (2010) A Spatial Analysis of the Effect of Entry by Supercenter and Warehouse Club Retailers on Grocery Sales, Journal of Food Distribution Research, 41(2), 39-57. Doi: 10.22004/ag.econ.139056. Posted with permission.

Copyright Owner

The Food Distribution Research Society, Inc.

Language

en

File Format

application/pdf

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