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Location and co-location in retail: a probabilistic approach using geo-coded data for metropolitan retail markets
Jönköping University, Jönköping International Business School, JIBS, Economics, Finance and Statistics.
Jönköping University, Jönköping International Business School, JIBS, Economics, Finance and Statistics.
2014 (English)In: The annals of regional science, ISSN 0570-1864, E-ISSN 1432-0592, Vol. 52, no 2, 385-408 p.Article in journal (Refereed) Published
Abstract [en]

In this paper, we employ geo-coded data at a fine spatial resolution for Sweden’s metropolitan areas to assess retail co-location. Retail clusters and their place in urban space are assessed from several angles. The probability of a specific type of retail unit to be established in a 250 by 250 m square is modelled as a function of (i) the presence of other similar retail establishments, (ii) the presence of stores that belong to other retail sectors and (iii) other characteristics of the square area, and its access to demand in the pertinent urban landscape. The analysis clarifies which types of retail clusters one can expect to find in a metropolitan region, as well as their relationship to the urban landscape. We analyse three distinct types of stores: clothing, household appliances, and specialized stores. Stores with high intensities of interaction are co-located, and predominantly located close to the urban cores, consistent with predictions from bid rent theory and central place theory. We further document negative location tendencies between shops that sell frequently purchased products and shops that sell durables. Moreover, our results highlight the importance of demand in the close surroundings, which is particularly strong for small-scale establishments.

Place, publisher, year, edition, pages
2014. Vol. 52, no 2, 385-408 p.
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-23748DOI: 10.1007/s00168-014-0591-7OAI: oai:DiVA.org:hj-23748DiVA: diva2:715432
Available from: 2014-05-05 Created: 2014-05-05 Last updated: 2014-05-05Bibliographically approved
In thesis
1. Retail Location
Open this publication in new window or tab >>Retail Location
2014 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

The thesis in hand presents four individual chapters, all of which explore the spatial aspects of the retail sector. The theoretical framework used in all four papers is vastly rooted in the urban and regional economics literature. Using novel data from Sweden for the application of various econometric methods, the thesis investigates (i) the distance sensitivity of demand and market reach for various types of retail activities, (ii) the spatial composition of retail markets and co-location patterns between the various branches of the sector, (iii) the spatial determinants of independent retailers’ productivity, and (iv) the relationship between the retail sector and place attractiveness.

The first paper (co-authored with Johan Klaesson) establishes a methodological framework for estimating distance decay and market accessibility for various types of retail activities given a lack of consumer data. The paper addresses the heterogeneous nature of the sector and provides a solid categorization for various types of retail activities. The second paper (coauthored with Johan P. Larsson) employs a unique empirical approach to characterize the location and co-location of retailers in the metropolitan markets. The analysis captures the co-location tendencies between various types of retailers at a highly disaggregated  geographical level, where the importance of access to demand in the pertinent urban landscape is also accentuated.

In the third paper, I investigate the spatial determinants of retail productivity. The focus of the paper is on the influence of market size and regional hierarchy on the productivity of independent retailers. The results show a higher productivity premium from the immediate market potential for stores located in central markets compared to stores located in non-central markets. On the other hand, regional market potential is found to play an equally important role for the productivity of stores located both in central and non-central markets. In the fourth paper, I address the role of retail as an urban amenity. In the empirical analysis, to capture the relevance of consumption possibilities for place attractiveness, “access to stores” measures are constructed for both the municipal and regional levels. Although consumption possibilities in the region are found to be positively associated with the place attractiveness of both rural and city municipalities, store access in municipal market boundaries is found to be relevant only for the place attractiveness of city municipalities.

Place, publisher, year, edition, pages
Jönköping: Jönköping International Business School, 2014. 188 p.
Series
JIBS Dissertation Series, ISSN 1403-0470 ; 097
National Category
Business Administration
Identifiers
urn:nbn:se:hj:diva-23753 (URN)978-91-86345-52-5 (ISBN)
Public defence
2014-05-23, B1014 at JIBS, Jönköping, 10:00 (English)
Opponent
Supervisors
Available from: 2014-05-05 Created: 2014-05-05 Last updated: 2014-05-05Bibliographically approved

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Citation style
  • apa
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