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Utilitarian or experiential? Divergent location strategies of the rural coffee retail in the Hangzhou metropolitan area

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  • Chen, Yufan
  • Xu, Kechen
  • He, Yong
  • Chen, Qianhu

Abstract

The rapid proliferation of coffee shops in rural China signifies a profound transformation of rural retail landscapes, propelled by both utilitarian and experiential consumption demands within the broader context of urban–rural integration. This study systematically compares divergent location strategies of two representative rural coffee retail models, Luckin Coffee and independent village cafes, within the Hangzhou Metropolitan Area. An XGBoost-SHAP machine learning framework is applied to examine the nonlinear effects, thresholds, and interaction mechanisms of twelve spatial, socioeconomic, and tourism-related factors affecting retail site selection at the village level. Results indicate that Luckin Coffee primarily targets areas with high population density, robust economic activity, and advanced transportation infrastructure, reflecting a utilitarian expansion strategy. In contrast, independent village cafes are more responsive to population mobility, proximity to tourism attractions, and ecological amenities, emphasizing experiential value creation. These findings reveal pronounced spatial differentiation and complex nonlinearities in rural coffee retail location strategies and provide new insights for rural retail planning and urban–rural integration policy.

Suggested Citation

  • Chen, Yufan & Xu, Kechen & He, Yong & Chen, Qianhu, 2026. "Utilitarian or experiential? Divergent location strategies of the rural coffee retail in the Hangzhou metropolitan area," Journal of Retailing and Consumer Services, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:joreco:v:88:y:2026:i:c:s0969698925003194
    DOI: 10.1016/j.jretconser.2025.104540
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