Location and Co-location in Retail - A Probabilistic Approach Using Geo-coded Data for Swedish Metropolitan Retail Markets
This paper offers a unique empirical approach to detect co-location patterns in the retail sector. We analyse the co-location of retail service establishments in Sweden by using geo-coded data. We pinpoint each establishment in Sweden down to a 250 by 250 metre square. Our analysis captures a general pattern for the co-location of different types of retailing activities, also taking into account several spatial attributes of location. We study the three major retail markets in Sweden (Stockholm, Malmö, and Gothenburg). We position the paper within a framework in which the presence of an economic activity in space is explained by the spatial attributes of the place as well as the nature of the economic activity. Our empirical design follows a probabilistic approach, whereby the probability of finding a particular type of retailing activity in a square is explained by the presence of similar and different kinds of retailing activities in the respective square, as well as by the characteristics of their location. We select three major and distinct types of retailing stores: clothing, household appliances, and specialized stores. Our findings are well in line with the propositions of bid rent theory and central place theory for retail markets. We further document negative location tendencies between shops that sell frequently purchased products and shops that sell durables. Moreover, our results highlight the importance of demand in the close surroundings, which is particularly strong for small-scale establishments.
|Date of creation:||05 Mar 2013|
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- Edward L. Glaeser, Jed Kolko, and Albert Saiz, 2001.
Journal of Economic Geography,
Oxford University Press, vol. 1(1), pages 27-50, January.
- Ed Glaeser & Jed Kolko & Albert Saiz, 2000. "Consumer City," NBER Working Papers 7790, National Bureau of Economic Research, Inc.
- Edward L. Glaeser & Jed Kolko & Albert Saiz, 2000. "Consumer City," Harvard Institute of Economic Research Working Papers 1901, Harvard - Institute of Economic Research.
- Richard Florida & Charlotta Mellander & Kevin Stolarick, 2008. "Inside the black box of regional development: human capital, the creative class and tolerance," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 615-649, September.
- Florida, Richard & Mellander, Charlotta & Stolarick, Kevin, 2007. "Inside the Black Box of Regional Development - human capital, the creative class and tolerance," Working Paper Series in Economics and Institutions of Innovation 88, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
- Andersson, Martin & Klaesson, Johan, 2006. "Regional Interaction & Economic Diversity - exploring the role of geographically overlapping markets for a municipality’s diversity in retail and durables," Working Paper Series in Economics and Institutions of Innovation 49, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
- Börje Johansson & Johan Klaesson & Michael Olsson, 2003. "Commuters’ non-linear response to time distances," Journal of Geographical Systems, Springer, vol. 5(3), pages 315-329, November. Full references (including those not matched with items on IDEAS)
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