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The Effect of Entry by Supercenter and Warehouse Club Retailers on Grocery Sales and Small Supermarkets: A Spatial Analysis

  • Martens, Bobby J.
  • Florax, Raymond J.G.M.
  • Dooley, Frank J.

This research evaluates the effects of entry by supercenters and warehouse clubs on retail grocery sales and the exit of small supermarkets. Drawing on literature from trade area analysis, agglomeration, and location theory, spatial econometric models are estimated. Results suggest that warehouse and supercenter stores have a significant and large effect on the change in grocery sales and the exit of small supermarkets operating at the county level.

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File URL: http://purl.umn.edu/19176
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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2005 Annual meeting, July 24-27, Providence, RI with number 19176.

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Date of creation: 2005
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Handle: RePEc:ags:aaea05:19176
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  1. Lung-fei Lee, 2003. "Best Spatial Two-Stage Least Squares Estimators for a Spatial Autoregressive Model with Autoregressive Disturbances," Econometric Reviews, Taylor & Francis Journals, vol. 22(4), pages 307-335.
  2. Bruce Marion, 1998. "Competition in Grocery Retailing: The Impact of a New Strategic Group on BLS Price Increases," Review of Industrial Organization, Springer, vol. 13(4), pages 381-399, August.
  3. Krugman, Paul R, 1981. "Intraindustry Specialization and the Gains from Trade," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 959-73, October.
  4. Emek Basker, 2005. "Job Creation or Destruction? Labor Market Effects of Wal-Mart Expansion," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 174-183, February.
  5. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, June.
  6. Curry, B & George, K D, 1983. "Industrial Concentration: A Survey," Journal of Industrial Economics, Wiley Blackwell, vol. 31(3), pages 203-55, March.
  7. Michael J. Hicks & Kristy Wilburn, 2005. "The Locational Impact of Wal-Mart Entrance: A Panel Study of the Retail Trade Sector in West Virginia," Urban/Regional 0511011, EconWPA.
  8. Woo, Byung-Joon & Huang, Chung L. & Epperson, James E. & Cude, Brenda J., 2001. "Effect Of A New Wal-Mart Supercenter On Local Retail Food Prices," Journal of Food Distribution Research, Food Distribution Research Society, vol. 32(01), March.
  9. Levy, David, 1985. "Specifying the Dynamics of Industry Concentration," Journal of Industrial Economics, Wiley Blackwell, vol. 34(1), pages 55-68, September.
  10. Marius Brülhart, 1998. "Economic Geography, Industry Location and Trade: The Evidence," The World Economy, Wiley Blackwell, vol. 21(6), pages 775-801, 08.
  11. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-59, December.
  12. Ingene, Charles A. & Yu, Eden S. H., 1981. "Determinants of retail sales in SMSAs," Regional Science and Urban Economics, Elsevier, vol. 11(4), pages 529-547, November.
  13. Capps, Oral, Jr. & Griffin, James M., 1998. "Effect Of A Mass Merchandiser On Traditional Food Retailers," Journal of Food Distribution Research, Food Distribution Research Society, vol. 29(1), February.
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