IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v34y2017icp102-116.html
   My bibliography  Save this article

Portuguese food retailers – Exploring three classic theories of retail location

Author

Listed:
  • Reigadinha, Tânia
  • Godinho, Pedro
  • Dias, Joana

Abstract

This article sets forth results from an exploratory empirical study that aimed to test the predictive validity of three classic location theories: central place theory, spatial interaction theory and the principle of minimum differentiation. Correlation, linear regression and analytical procedures in a Geographic Information System were used to reveal relationships between variables. The results show that all theories find significant support. It was possible to relate store location with distance to the centre, population density and competitor's location. It was also found that store location is related to consumer's proximity to the store (when stores are smaller) and the store's attractiveness to the consumer (when stores are larger).

Suggested Citation

  • Reigadinha, Tânia & Godinho, Pedro & Dias, Joana, 2017. "Portuguese food retailers – Exploring three classic theories of retail location," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 102-116.
  • Handle: RePEc:eee:joreco:v:34:y:2017:i:c:p:102-116
    DOI: 10.1016/j.jretconser.2016.09.015
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698915301089
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Joan-Ramon Borrell & Laura Fernández-Villadangos, 2010. "Clustering or scattering: the underlying reason for regulating distance among retail outlets," Working Papers XREAP2010-12, Xarxa de Referència en Economia Aplicada (XREAP), revised Dec 2010.
    2. Pennerstorfer, Dieter & Weiss, Christoph, 2013. "Spatial clustering and market power: Evidence from the retail gasoline market," Regional Science and Urban Economics, Elsevier, vol. 43(4), pages 661-675.
    3. Picone, Gabriel A. & Ridley, David B. & Zandbergen, Paul A., 2009. "Distance decreases with differentiation: Strategic agglomeration by retailers," International Journal of Industrial Organization, Elsevier, vol. 27(3), pages 463-473, May.
    4. Irmen, Andreas & Thisse, Jacques-Francois, 1998. "Competition in Multi-characteristics Spaces: Hotelling Was Almost Right," Journal of Economic Theory, Elsevier, vol. 78(1), pages 76-102, January.
    5. Barreda-Tarrazona, Iván & García-Gallego, Aurora & Georgantzís, Nikolaos & Andaluz-Funcia, Joaquín & Gil-Sanz, Agustín, 2011. "An experiment on spatial competition with endogenous pricing," International Journal of Industrial Organization, Elsevier, vol. 29(1), pages 74-83, January.
    6. Jerry Hausman & Ephraim Leibtag, 2007. "Consumer benefits from increased competition in shopping outlets: Measuring the effect of Wal-Mart," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(7), pages 1157-1177.
    7. Sergio Porta & Emanuele Strano & Valentino Iacoviello & Roberto Messora & Vito Latora & Alessio Cardillo & Fahui Wang & Salvatore Scellato, 2009. "Street Centrality and Densities of Retail and Services in Bologna, Italy," Environment and Planning B, , vol. 36(3), pages 450-465, June.
    8. Wen‐Tai Hsu, 2012. "Central Place Theory and City Size Distribution," Economic Journal, Royal Economic Society, vol. 122(563), pages 903-932, September.
    9. Hymel, Kent, 2014. "Do parking fees affect retail sales? Evidence from Starbucks," Economics of Transportation, Elsevier, vol. 3(3), pages 221-233.
    10. Janet S. Netz & Beck A. Taylor, 2002. "Maximum Or Minimum Differentiation? Location Patterns Of Retail Outlets," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 162-175, February.
    11. Ming-Long Lee & R. Kelley Pace, 2005. "Spatial Distribution of Retail Sales," The Journal of Real Estate Finance and Economics, Springer, vol. 31(1), pages 53-69, August.
    12. Zhang, Z John, 1995. "Price-Matching Policy and the Principle of Minimum Differentiation," Journal of Industrial Economics, Wiley Blackwell, vol. 43(3), pages 287-299, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Olga Porro & Francesc Pardo-Bosch & Núria Agell & Mónica Sánchez, 2020. "Understanding Location Decisions of Energy Multinational Enterprises within the European Smart Cities’ Context: An Integrated AHP and Extended Fuzzy Linguistic TOPSIS Method," Energies, MDPI, Open Access Journal, vol. 13(10), pages 1-29, May.
    2. Yıldız, Nurdan & Tüysüz, Fatih, 2019. "A hybrid multi-criteria decision making approach for strategic retail location investment: Application to Turkish food retailing," Socio-Economic Planning Sciences, Elsevier, vol. 68(C).
    3. Gonzalo Wandosell & María Concepción Parra-Meroño & Raul Baños, 2019. "Online Store Locator: An Essential Resource for Retailers in the 21st Century," Social Sciences, MDPI, Open Access Journal, vol. 8(2), pages 1-13, February.
    4. Hallak, Rob & Assaker, Guy & O’Connor, Peter & Lee, Craig, 2018. "Firm performance in the upscale restaurant sector: The effects of resilience, creative self-efficacy, innovation and industry experience," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 229-240.
    5. Adeniyi, Oluwole & Brown, Abraham & Whysall, Paul, 2020. "Retail location preferences: A comparative analysis," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    6. Wonjun Cho & Minho Kim & Hyunjung Kim & Youngsang Kwon, 2020. "Transforming Housing to Commercial Use: A Case Study on Commercial Gentrification in Yeon-nam District, Seoul," Sustainability, MDPI, Open Access Journal, vol. 12(10), pages 1-17, May.
    7. Ceren Erdin & Halil Emre Akbaş, 2019. "A Comparative Analysis of Fuzzy TOPSIS and Geographic Information Systems (GIS) for the Location Selection of Shopping Malls: A Case Study from Turkey," Sustainability, MDPI, Open Access Journal, vol. 11(14), pages 1-22, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bonein, Aurélie & Turolla, Stéphane, 2017. "Spatial competition with demand uncertainty: A laboratory experiment," Working Papers 266260, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    2. Schuetz, Jenny, 2015. "Why are Walmart and Target Next-Door neighbors?," Regional Science and Urban Economics, Elsevier, vol. 54(C), pages 38-48.
    3. Isabelle M. Nilsson & Oleg A. Smirnov, 2017. "Clustering vs. relative location: Measuring spatial interaction between retail outlets," Papers in Regional Science, Wiley Blackwell, vol. 96(4), pages 721-741, November.
    4. Yi Deng & Gabriel Picone, 2013. "Strategic Clustering and Competition by Alcohol Retailers: An Emperical Anlysis of Entry and Location Decisions," Working Papers 1013, University of South Florida, Department of Economics.
    5. Nilsson, Isabelle M. & Smirnov, Oleg A., 2016. "Measuring the effect of transportation infrastructure on retail firm co-location patterns," Journal of Transport Geography, Elsevier, vol. 51(C), pages 110-118.
    6. Buechel, Berno & Klein, Jan, 2014. "Do Consumers' Preferences Really Matter? - A Note on Spatial Competition with Restricted Strategies," MPRA Paper 55288, University Library of Munich, Germany.
    7. Bernardo, Valeria & Borrell, Joan-Ramon & Perdiguero, Jordi, 2016. "Fast charging stations: Simulating entry and location in a game of strategic interaction," Energy Economics, Elsevier, vol. 60(C), pages 293-305.
    8. Heijnen, Pim & Soetevent, Adriaan R., 2018. "Price competition on graphs," Journal of Economic Behavior & Organization, Elsevier, vol. 146(C), pages 161-179.
    9. Darlene Chisholm & Margaret McMillan & George Norman, 2010. "Product differentiation and film-programming choice: do first-run movie theatres show the same films?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 34(2), pages 131-145, May.
    10. Adriana Nikolic & Christoph Weiss, 2014. "Spatial interactions in location decisions: Empirical evidence from a Bayesian spatial probit model," Department of Economics Working Papers wuwp177, Vienna University of Economics and Business, Department of Economics.
    11. Pennerstorfer, Dieter, 2017. "Can competition keep the restrooms clean? Price, quality and spatial competition," Regional Science and Urban Economics, Elsevier, vol. 64(C), pages 117-136.
    12. Firgo, Matthias & Pennerstorfer, Dieter & Weiss, Christoph R., 2015. "Centrality and pricing in spatially differentiated markets: The case of gasoline," International Journal of Industrial Organization, Elsevier, vol. 40(C), pages 81-90.
    13. Wieland, Thomas, 2014. "Räumliches Einkaufsverhalten und Standortpolitik im Einzelhandel unter Berücksichtigung von Agglomerationseffekten: Theoretische Erklärungsansätze, modellanalytische Zugänge und eine empirisch-ökonome," MPRA Paper 77163, University Library of Munich, Germany.
    14. Bergantino, Angela Stefania & Capozza, Claudia & Intini, Mario, 2018. "Empirical investigation of retail gasoline prices," Working Papers 18_5, SIET Società Italiana di Economia dei Trasporti e della Logistica.
    15. Li Gan & Manuel A. Hernandez, 2013. "Making Friends with Your Neighbors? Agglomeration and Tacit Collusion in The Lodging Industry," The Review of Economics and Statistics, MIT Press, vol. 95(3), pages 1002-1017, July.
    16. Lijesen, M.G., 2010. "Empirical applications of spatial competition; an interpretative literature review," Serie Research Memoranda 0006, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    17. Elizalde, Javier, 2013. "Competition in multiple characteristics: An empirical test of location equilibrium," Regional Science and Urban Economics, Elsevier, vol. 43(6), pages 938-950.
    18. Wen-Jung Liang & Kuang-Cheng Wang & Hong-Ren Din, 2014. "Spatial Competition and Flexible Manufacturing with Spatially Discriminatory Pricing," ERSA conference papers ersa14p234, European Regional Science Association.
    19. Aurélien Nioche & Basile Garcia & Thomas Boraud & Nicolas Rougier & Sacha Bourgeois-Gironde, 2019. "Interaction effects between consumer information and firms' decision rules in a duopoly: how cognitive features can impact market dynamics," Palgrave Communications, Palgrave Macmillan, vol. 5(1), pages 1-11, December.
    20. Mitsuru Igami, 2011. "Does Big Drive Out Small?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 38(1), pages 1-21, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:34:y:2017:i:c:p:102-116. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nithya Sathishkumar). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.