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Exploring Small Area Demand for Grocery Retailers in Tourist Areas

Author

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  • Andy Newing

    (At time of writing: Centre for Spatial Analysis and Policy, School of Geography, University of Leeds, UK. Current: Faculty of Engineering and the Environment, University of Southampton, Highfield, Southampton SO17 1BJ, UK)

  • Graham Clarke

    (School of Geography, University of Leeds, Leeds LS2 9JT, UK)

  • Martin Clarke

    (School of Geography, University of Leeds, Leeds LS2 9JT, UK)

Abstract

This paper uses data from a major loyalty card scheme to draw insights about the characteristics of grocery expenditure by tourists. The authors explore the volume, value and composition of store-based visitor expenditure using consumer data from the loyalty card scheme. They focus on grocery spending at selected stores in Cornwall, a popular tourist destination in South West England. The loyalty card data provide a valuable source rarely available for academic investigations. The authors are able to analyse visitor spend by socio-economic and geodemographic characteristics, drawing a range of comparisons with residential demand from within the store catchment areas. They demonstrate that visitor grocery expenditure is complex and varies by store, destination and type of customer. The paper presents evidence to suggest that the current approaches used to estimate sales uplift and local-level economic impact from visitor demand are unable to account for the complexities of this form of expenditure. Based on these insights, the authors recommend that sophisticated modelling is employed to estimate the impact of visitor expenditure.

Suggested Citation

  • Andy Newing & Graham Clarke & Martin Clarke, 2014. "Exploring Small Area Demand for Grocery Retailers in Tourist Areas," Tourism Economics, , vol. 20(2), pages 407-427, April.
    • Handle: RePEc:sae:toueco:v:20:y:2014:i:2:p:407-427
    DOI: 10.5367/te.2013.0277
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    References listed on IDEAS

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    1. Robert Young & Anita Fernandez Young & Jennifer Parkin & Abigail Diamond, 2010. "Assessing the Economic Impact of Culture in English Market Towns: A Causal Chain Approach," Tourism Economics, , vol. 16(4), pages 925-951, December.
    2. Vicky Dudding & Chris Ryan, 2000. "The Impacts of Tourism on a Rural Retail Sector: A New Zealand Case Study," Tourism Economics, , vol. 6(4), pages 301-319, December.
    3. Bruno Bracalente & Cecilia Chirieleison & Massimo Cossignani & Luca Ferrucci & Marina Gigliotti & M. Giovanna Ranalli, 2011. "The Economic Impact of Cultural Events: The Umbria Jazz Music Festival," Tourism Economics, , vol. 17(6), pages 1235-1255, December.
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    Cited by:

    1. Ye, Zi & Clarke, Graham & Newing, Andy, 2021. "Estimating small-area demand of urban tourist for groceries: The case of Greater London," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).

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