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The Effect of Entry by Supercenter and Warehouse Club Retailers on Grocery Sales and Small Supermarkets: A Spatial Analysis

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  • Martens, Bobby J.
  • Florax, Raymond J.G.M.
  • Dooley, Frank J.

Abstract

This research evaluates the effects of entry by supercenters and warehouse clubs on retail grocery sales and the exit of small supermarkets. Drawing on literature from trade area analysis, agglomeration, and location theory, spatial econometric models are estimated. Results suggest that warehouse and supercenter stores have a significant and large effect on the change in grocery sales and the exit of small supermarkets operating at the county level.

Suggested Citation

  • Martens, Bobby J. & Florax, Raymond J.G.M. & Dooley, Frank J., 2005. "The Effect of Entry by Supercenter and Warehouse Club Retailers on Grocery Sales and Small Supermarkets: A Spatial Analysis," 2005 Annual meeting, July 24-27, Providence, RI 19176, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea05:19176
    DOI: 10.22004/ag.econ.19176
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    Cited by:

    1. Riungu, Claris Karimi, 2011. "Effects of Supermarkets on Fresh Fruit and Vegetables Small-Scale Farmers in Central Kenya," Research Theses 134484, Collaborative Masters Program in Agricultural and Applied Economics.

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