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National Chains and Trends in Retail Productivity Dispersion

Author

Listed:
  • Dominic Smith
  • G. Jacob Blackwood
  • Michael D. Giandrea
  • Cheryl Grim
  • Jay Stewart
  • Zoltan Wolf

Abstract

Productivity dispersion within an industry is an important characteristic of the business environment, potentially reflecting factors such as market structure, production technologies, and reallocation frictions. The retail trade sector saw significant changes between 1987 and 2017, and dispersion statistics can help characterize how it evolved over this period. In this paper, we shed light on this transformation by developing public-use Dispersion Statistics on Productivity (DiSP) data for the retail sector for 1987 through 2017. We find that from 1987 through 2017, dispersion increased between retail stores at the bottom and middle of the productivity distribution. However, when we weight stores by employment dispersion, the middle of the distribution is lower initially and decreases over time. These patterns are consistent with a retail landscape featuring more and more activity taking place in chain stores with similar productivity. Firm-based dispersion measures exhibit a similar pattern. Further investigation reveals that there is substantial heterogeneity in dispersion levels across industries.

Suggested Citation

  • Dominic Smith & G. Jacob Blackwood & Michael D. Giandrea & Cheryl Grim & Jay Stewart & Zoltan Wolf, 2025. "National Chains and Trends in Retail Productivity Dispersion," Working Papers 25-64, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:25-64
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    File URL: https://www2.census.gov/library/working-papers/2025/adrm/ces/CES-WP-25-64.pdf
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    References listed on IDEAS

    as
    1. Cindy Cunningham & Lucia Foster & Cheryl Grim & John Haltiwanger & Sabrina Wulff Pabilonia & Jay Stewart & Zoltan Wolf, 2023. "Dispersion in Dispersion: Measuring Establishment‐Level Differences in Productivity," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 69(4), pages 999-1032, December.
    2. Chad Syverson, 2004. "Product Substitutability and Productivity Dispersion," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 534-550, May.
    3. Teresa C. Fort & Shawn D. Klimek, 2018. "The Effects of Industry Classification Changes on US Employment Composition," Working Papers 18-28, Center for Economic Studies, U.S. Census Bureau.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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