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Retail productivity: The effects of market size and regional hierarchy

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  • Özge Öner

Abstract

How important is regional hierarchy for retailers’ productivity? This paper investigates the determinants of independent retailers’ productivity in Sweden between 2002 and 2008 with respect to market size and regional hierarchy. Using an accessible market potential approach, the impact of the potential demand in close proximity, and in the region is investigated separately for stores in central and peripheral retail markets. The findings suggest that the market size in close proximity has a higher impact on the productivity of stores located in central markets, whereas the market potential in the region has similar productivity returns for both stores in central markets and stores in non‐central markets. ¿Qué importancia tiene la jerarquía regional para la productividad de los minoristas? Este artículo investiga los determinantes de la productividad de los minoristas independientes en Suecia entre 2002 y 2008 con respecto al tamaño del mercado y la jerarquía regional. Mediante el uso de un enfoque de potencial de mercado accesible, se investiga por separado el impacto de la demanda potencial en la proximidad y en la región para las tiendas en los mercados minoristas centrales y periféricos. Los resultados sugieren que el tamaño del mercado en la proximidad inmediata tiene un mayor impacto en la productividad de las tiendas ubicadas en los mercados centrales, mientras que el potencial de mercado en la región tiene retornos de productividad similares tanto para las tiendas en los mercados centrales como para las tiendas en mercados no centrales. 地域のヒエラルキーは小売業の生産性にどのくらい重要なのか? 本稿では、市場規模と地域のヒエラルキーという点で、2002年から2008年のスウェーデンの独立した小売業者の生産性の決定因子を検討する。利用しやすい市場ポテンシャルアプローチを用いて、近接地およびその地域における潜在的需要を、中心地の商店と周辺部の小売業と別々に検討する。知見は近接する市場の規模は市場の中心にある商店の生産性により強い影響を及ぼすが、その一方で地域の市場ポテンシャルには中心地の商店と非中心部にある市場の両方に類似した生産性の効果が認められる。

Suggested Citation

  • Özge Öner, 2018. "Retail productivity: The effects of market size and regional hierarchy," Papers in Regional Science, Wiley Blackwell, vol. 97(3), pages 711-736, August.
  • Handle: RePEc:bla:presci:v:97:y:2018:i:3:p:711-736
    DOI: 10.1111/pirs.12268
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    Cited by:

    1. Ismaëlh Cissé & Jean Dubé, 2024. "Survival of new and small retail businesses facing mega‐retailers in non‐metropolitan areas—The case of Walmart in the province of Quebec," Growth and Change, Wiley Blackwell, vol. 55(1), March.
    2. Mikaela Backman & Janet E. Kohlhase, 2022. "Labor force diversity and new firm formation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 68(1), pages 9-28, February.
    3. Romero, Jaime & Cruz-Roche, Ignacio & Charron, Jean-Philippe, 2020. "The myth of price convergence under economic integration: A proposed explanation for the difference in food prices across European countries," European Management Journal, Elsevier, vol. 38(2), pages 267-276.

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