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IKEA entry - Effects on firms in retail and hospitality
Jönköping University, Jönköping International Business School, JIBS, Economics.
(English)Manuscript (preprint) (Other academic)
Abstract [en]

This study examines the entry effects of a durable goods big box, IKEA, on incumbent firms in the retail, accommodation and restaurant sectors in Sweden. Using a difference-in-difference approach combined with matching, the effects of IKEA entry on the net turnover and employment of incumbent firms located at varying distances from the new IKEA store are examined. The results show that entry by IKEA increases the net turnover of retail firms near the entry site that sell complement goods, indicating that IKEA entry causes demand spillovers due to multipurpose shopping. IKEA entry also increases the net turnover of accommodation firms in the region, which indicates that the entrant has a positive effect on the attractivity of the area. The estimations reveal no effects on retail firms located in the affected city centers, which suggests that retail in central places may have a certain resilience to competition from out-of-town retail clusters. No robust effects on substitute goods retailers or restaurants are found.

National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-48308OAI: oai:DiVA.org:hj-48308DiVA, id: diva2:1429130
Available from: 2020-05-08 Created: 2020-05-08 Last updated: 2020-05-08Bibliographically approved
In thesis
1. Spatial organization of retail activities
Open this publication in new window or tab >>Spatial organization of retail activities
2020 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis is a compilation of four independent papers that examine the spatial process of retail location. The central question I ask is how changes in access to consumer demand affects retail in terms of size and survival. I empirically analyze these aspects on municipality, neighborhood and firm level using Swedish data from Statistics Sweden, HUI Research AB and Datscha Sweden.

The first paper (co-authored with Sven-Olov Daunfeldt, Oana Mihaescu and Niklas Rudholm) examines the effect of durable goods big-box retailer IKEA entry on retail net turnover and employment in the municipalities of entry and their neighbors. In the second paper I assess the effect of IKEA entry on firm level net turnover and employment of retail, restaurants, and accommodation firms at varying distances from the new IKEA. The third paper (co-authored with Johan Klaesson) addresses the relationship between entry of out-of-town located shopping malls and the exit of incumbent stores. We examine how the probability of exit relates to the order of the goods that are sold by the retailers and how local density of demand influences the outcome. In the third paper I examine changes in food store access by proximity on the neighborhood level and how this is related to population density.

Place, publisher, year, edition, pages
Jönköping: Jönköping University, Jönköping International Business School, 2020. p. 49
Series
JIBS Dissertation Series, ISSN 1403-0470 ; 136
National Category
Economics
Identifiers
urn:nbn:se:hj:diva-48314 (URN)978-91-86345-99-0 (ISBN)
Public defence
2020-05-29, Zoom Webinar and in B1014, Jönköping International Business School, Jönköping, 10:00 (English)
Opponent
Supervisors
Funder
Swedish Retail and Wholesale Development Council
Available from: 2020-05-08 Created: 2020-05-08 Last updated: 2020-05-08Bibliographically approved

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Nilsson, Helena

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf