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Spillover effects when IKEA enters: Do incumbent retailers win or lose?
Institute of Retail Economics, Stockholm, Sweden.
Institute of Retail Economics, Stockholm, Sweden.
Jönköping University, Jönköping International Business School, JIBS, Economics. Institute of Retail Economics, Stockholm, Sweden.
Institute of Retail Economics, Stockholm, Sweden.
2019 (English)In: Papers in regional science (Print), ISSN 1056-8190, E-ISSN 1435-5957Article in journal (Refereed) Epub ahead of print
Abstract [en]

We investigate the effects of IKEA entry in three Swedish municipalities, finding that revenues for incumbent retailers located 1 km from the new IKEA store experienced a 7% increase due to positive spillover. The effect was insignificant for retailers located in city centres or more than 1 km from IKEA. Moreover, the positive agglomeration effects only dominate the negative competition effects for stores that sell complementary products, while same-market retailers located between 2 and 5 km from the new IKEA store experienced revenue loss due to IKEA entry. In contrast to retail revenues, the effects on employment were statistically insignificant. 

Place, publisher, year, edition, pages
Springer, 2019.
Keywords [en]
agglomeration, big-box retailing, propensity score matching, shopping externalities, spatial sssanalysis
National Category
Economic Geography
Identifiers
URN: urn:nbn:se:hj:diva-45392DOI: 10.1111/pirs.12459ISI: 000474252100001Scopus ID: 2-s2.0-85068611941OAI: oai:DiVA.org:hj-45392DiVA, id: diva2:1338530
Available from: 2019-07-23 Created: 2019-07-23 Last updated: 2019-07-23Bibliographically approved

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Nilsson, Helena

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  • apa
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  • de-DE
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  • en-US
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  • nn-NB
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  • Other locale
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Output format
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  • asciidoc
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