A Spatial Analysis of the Effect of Entry by Supercenter and Warehouse Club Retailers on Grocery Sales
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.
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- Emek Basker & Michael Noel, 2009.
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- Emek Basker & Michael Noel, 2007. "The Evolving Food Chain: Competitive Effects of Wal-Mart's Entry into the Supermarket Industry," Working Papers 0712, Department of Economics, University of Missouri.
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"The Effect of Wal-Mart Supercenters on Grocery Prices in New England,"
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- Richard J. Volpe III & Nathalie Lavoie, 2006. "The Effect of Wal-Mart Supercenters on Grocery Prices in New England," Working Papers 2006-8, University of Massachusetts Amherst, Department of Resource Economics.
- Jerry Hausman & Ephraim Leibtag, 2007.
"Consumer benefits from increased competition in shopping outlets: Measuring the effect of Wal-Mart,"
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John Wiley & Sons, Ltd., vol. 22(7), pages 1157-1177.
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