IDEAS home Printed from https://ideas.repec.org/a/kap/jrefec/v31y2005i1p53-69.html
   My bibliography  Save this article

Spatial Distribution of Retail Sales

Author

Listed:
  • Ming-Long Lee
  • R. Kelley Pace

Abstract

We examine the distribution of sales for a retail chain in the Houston market using a spatial gravity model. Unlike previous empirical studies, our approach models spatial dependencies among both consumers and retailers. The results show that both forms of spatial dependence exert statistically and economically significant impacts on the estimates of parameters in retail gravity models. Contrary to the suggestions of (Gautschi, D. A. (1981). “Specification of Patronage Models for Retail Center Choice,” Journal of Marketing Research 18, 162–174.) as well as (Eppli, M. J., and J. D. Shilling. (1996). “How Critical Is a Good Location to a Regional Shopping Center?” Journal of Real Estate Research 12, 459–468.), our results show the importance of the distance parameter in retail gravity models may be greatly understated. Thus, ignoring spatial dependence may lead to overestimation of the deterministic extent of trade areas, and underestimate the importance of good locations. Copyright Springer Science + Business Media, Inc. 2005

Suggested Citation

  • 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.
    • Handle: RePEc:kap:jrefec:v:31:y:2005:i:1:p:53-69
    DOI: 10.1007/s11146-005-0993-5
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11146-005-0993-5
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11146-005-0993-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Hardin, William G, III & Wolverton, Marvin L, 2001. "Neighborhood Center Image and Rents," The Journal of Real Estate Finance and Economics, Springer, vol. 23(1), pages 31-46, July.
    2. C.F. Sirmans & Krisandra A. Guidry, 1993. "The Determinants of Shopping Center Rents," Journal of Real Estate Research, American Real Estate Society, vol. 8(1), pages 107-116.
    3. Pace, R Kelley & Gilley, Otis W, 1997. "Using the Spatial Configuration of the Data to Improve Estimation," The Journal of Real Estate Finance and Economics, Springer, vol. 14(3), pages 333-340, May.
    4. Mark J. Eppli & James D. Shilling, 1996. "How Critical Is a Good Location to a Regional Shopping Center?," Journal of Real Estate Research, American Real Estate Society, vol. 12(3), pages 459-468.
    5. A. Porojan, 2001. "Trade Flows and Spatial Effects: The Gravity Model Revisited," Open Economies Review, Springer, vol. 12(3), pages 265-280, July.
    6. Mark J. Eppli & John D. Benjamin, 1994. "The Evolution of Shopping Center Research: A Review and Analysis," Journal of Real Estate Research, American Real Estate Society, vol. 9(1), pages 5-32.
    7. S Brown, 1992. "The Wheel of Retail Gravitation?," Environment and Planning A, , vol. 24(10), pages 1409-1429, October.
    8. Okoruwa, A. Ason & Terza, Joseph V. & Nourse, Hugh O., 1988. "Estimating patronization shares for urban retail centers: An extension of the Poisson gravity model," Journal of Urban Economics, Elsevier, vol. 24(3), pages 241-259, November.
    9. Mark J. Eppli & James D. Shilling, 1996. "How Critical is a Good Location to a Regional Shopping Center?," Wisconsin-Madison CULER working papers 96-03, University of Wisconsin Center for Urban Land Economic Research.
    10. A. Ason Okoruwa & Hugh O. Nourse & Joseph V. Terza, 1994. "Estimating Sales for Retail Centers: An Application of the Poisson Gravity Model," Journal of Real Estate Research, American Real Estate Society, vol. 9(1), pages 85-98.
    11. Dean H. Gatzlaff & G. Stacy Sirmans & Barry A. Diskin, 1994. "The Effect of Anchor Tenant Loss on Shopping Center Rents," Journal of Real Estate Research, American Real Estate Society, vol. 9(1), pages 99-110.
    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. Sohyun Park & Keumsook Lee, 2021. "Examining the Impact of E-Commerce Growth on the Spatial Distribution of Fashion and Beauty Stores in Seoul," Sustainability, MDPI, vol. 13(9), pages 1-20, May.
    2. James P. LeSage & R. Kelley Pace, 2008. "Spatial Econometric Modeling Of Origin‐Destination Flows," Journal of Regional Science, Wiley Blackwell, vol. 48(5), pages 941-967, December.
    3. Shiwei Lu & Shih-Lung Shaw & Zhixiang Fang & Xirui Zhang & Ling Yin, 2017. "Exploring the Effects of Sampling Locations for Calibrating the Huff Model Using Mobile Phone Location Data," Sustainability, MDPI, vol. 9(1), pages 1-18, January.
    4. John Clapp & Katsiaryna Bardos & Tingyu Zhou, 2014. "Expansions and Contractions of Major US Shopping Centers," The Journal of Real Estate Finance and Economics, Springer, vol. 48(1), pages 16-56, January.
    5. Angulo, A. M. & Mtimet, N. & Dhehibi, B. & Atwi, M. & Ben Youssef , O. & Gil, J. M. & Sai, M. B., 2011. "A revisited gravity equation in trade flow analysis: an application to the case of Tunisian olive oil exports," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 21, pages 225-239.
    6. Rasouli, Soora & Timmermans, Harry, 2013. "Assessment of model uncertainty in destinations and travel forecasts of models of complex spatial shopping behaviour," Journal of Retailing and Consumer Services, Elsevier, vol. 20(2), pages 139-146.
    7. T Drezner & Z Drezner, 2008. "Lost demand in a competitive environment," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(3), pages 362-371, March.
    8. Jesus Gonzalez-Feliu & Jean-Louis Routhier & Charles Raux, 2010. "An attractiveness-based model for shopping trips in urban areas," Post-Print halshs-00690098, HAL.
    9. James Paul Lesage & Wolfgang Polasek, 2008. "Incorporating Transportation Network Structure in Spatial Econometric Models of Commodity Flows," Spatial Economic Analysis, Taylor & Francis Journals, vol. 3(2), pages 225-245.
    10. 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.
    11. Koji Murayama & Jun Nagayasu & Lamia Bazzaoui, 2022. "Spatial Dependence, Social Networks, and Economic Structures in Japanese Regional Labor Migration," Sustainability, MDPI, vol. 14(3), pages 1-31, February.
    12. Laurent, Thibault & Margaretic, Paula & Thomas-Agnan, Christine, 2021. "Do neighboring countries matter when explaining bilateral remittances?," TSE Working Papers 21-1221, Toulouse School of Economics (TSE).
    13. Sgrignoli, Paolo & Metulini, Rodolfo & Schiavo, Stefano & Riccaboni, Massimo, 2015. "The relation between global migration and trade networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 417(C), pages 245-260.
    14. Chien-Chou Chen & Guo-Jun Lo & Ta-Chien Chan, 2022. "Spatial Analysis on Supply and Demand of Adult Surgical Masks in Taipei Metropolitan Areas in the Early Phase of the COVID-19 Pandemic," IJERPH, MDPI, vol. 19(11), pages 1-12, May.
    15. Lukas Dargel, 2021. "Revisiting estimation methods for spatial econometric interaction models," Journal of Spatial Econometrics, Springer, vol. 2(1), pages 1-41, December.
    16. 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.
    17. Oshan, Taylor M., 2020. "The spatial structure debate in spatial interaction modeling: 50 years on," OSF Preprints 42vxn, Center for Open Science.
    18. Kelley Pace, R. & LeSage, James P., 2008. "A spatial Hausman test," Economics Letters, Elsevier, vol. 101(3), pages 282-284, December.
    19. Halás Marián & Zuskáčová Veronika, 2013. "Travelling to services in the daily urban system of Olomouc," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 20(20), pages 23-41, June.
    20. Jinju Kim & Jaecheol Kim & Sangkyeong Lee, 2024. "Impact of Spatial Characteristics on Gendered Retail Consumption in Seoul: A Gender-Sensitive Urban Planning Perspective," Sustainability, MDPI, vol. 16(14), pages 1-23, 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. 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.
    2. William G. Hardin III & Marvin L. Wolverton, 2000. "Micro-Market Determinants of Neighborhood Center Rental Rate," Journal of Real Estate Research, American Real Estate Society, vol. 20(3), pages 299-322.
    3. Francois Des Rosiers & Marius Theriault & Catherine Lavoie, 2009. "Retail Concentration and Shopping Center Rents - A Comparison of Two Cities," Journal of Real Estate Research, American Real Estate Society, vol. 31(2), pages 165-208.
    4. John Clapp & Katsiaryna Bardos & Tingyu Zhou, 2014. "Expansions and Contractions of Major US Shopping Centers," The Journal of Real Estate Finance and Economics, Springer, vol. 48(1), pages 16-56, January.
    5. Rasouli, Soora & Timmermans, Harry, 2013. "Assessment of model uncertainty in destinations and travel forecasts of models of complex spatial shopping behaviour," Journal of Retailing and Consumer Services, Elsevier, vol. 20(2), pages 139-146.
    6. Eckert, Andrew & He, Zhen & West, Douglas S., 2015. "An empirical analysis of tenant location patterns near department stores in planned regional shopping centers," Journal of Retailing and Consumer Services, Elsevier, vol. 22(C), pages 61-70.
    7. William Hardin & Marvin Wolverton & Jon Carr, 2002. "An Empirical Analysis of Community Center Rents," Journal of Real Estate Research, Taylor & Francis Journals, vol. 23(1-2), pages 163-178, January.
    8. Tony Shun-TeYuo & Colin Lizieri & Phillip McCann & Neil Crosby, 2011. "Rental Values in UK Shopping Malls," Urban Studies, Urban Studies Journal Limited, vol. 48(8), pages 1667-1679, June.
    9. Peter F. Cowell & Henry J. Munneke, 1998. "Percentage Leases and the Advantages of Regional Malls," Journal of Real Estate Research, American Real Estate Society, vol. 15(3), pages 239-252.
    10. Yan Liu & Linchuan Yang & Kwong Wing Chau, 2020. "Impacts of Tourism Demand on Retail Property Prices in a Shopping Destination," Sustainability, MDPI, vol. 12(4), pages 1-14, February.
    11. Mark J. Eppli & Steve P. Laposa, 1997. "A Descriptive Analysis of the Retail Real Estate Markets at the Metropolitan Level," Journal of Real Estate Research, American Real Estate Society, vol. 14(3), pages 321-338.
    12. Liu, Xuan & Tong, De & Huang, Jiangming & Zheng, Wenfeng & Kong, Minghui & Zhou, Guohui, 2022. "What matters in the e-commerce era? Modelling and mapping shop rents in Guangzhou, China," Land Use Policy, Elsevier, vol. 123(C).
    13. Puligadda, Sanjay & Ross, William T. & Chen, Jinjie & Howlett, Elizabeth, 2012. "When loyalties clash purchase behavior when a preferred brand is stocked out: The tradeoff between brand and store loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 19(6), pages 570-577.
    14. Sergio Garate & Anthony Pennington-Cross, 2014. "Measuring the Impact of Agglomeration on Productivity: Evidence from Chilean Retailers," Urban Studies, Urban Studies Journal Limited, vol. 51(8), pages 1653-1671, June.
    15. Alexander Kubis & Maria Hartmann, 2007. "Analysis of Location of Large-area Shopping Centres. A Probabilistic Gravity Model for the Halle–Leipzig Area," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 27(1), pages 43-57, February.
    16. Charles C. Carter & Kerry D. Vandell, 2005. "Store Location in Shopping Centers: Theory & Estimates," Journal of Real Estate Research, American Real Estate Society, vol. 27(3), pages 237-266.
    17. Jinju Kim & Jaecheol Kim & Sangkyeong Lee, 2024. "Impact of Spatial Characteristics on Gendered Retail Consumption in Seoul: A Gender-Sensitive Urban Planning Perspective," Sustainability, MDPI, vol. 16(14), pages 1-23, July.
    18. Saša Medić & Jelena Atanacković Jeličić & Milan Rapaić, 2024. "Advancing Social and Economic Sustainability in Urban Areas: A Methodology for Determining Architectural Programs of Shopping Centers," Sustainability, MDPI, vol. 16(8), pages 1-25, April.
    19. Herman J Bierens & Thomas Kontuly, 2008. "Testing the Regional Restructuring Hypothesis in Western Germany," Environment and Planning A, , vol. 40(7), pages 1713-1727, July.
    20. Neil A Powe, 2012. "Small Town Vitality and Viability: Learning from Experiences in the North East of England," Environment and Planning A, , vol. 44(9), pages 2225-2239, September.

    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:kap:jrefec:v:31:y:2005:i:1:p:53-69. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.