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Shopping Hours and Entry - an Empirical Analysis of Aldi’s Opening Hours

Author

Listed:
  • Samuel Haas

    (Justus-Liebig-University, Chair for Industrial Organization, Regulation and Antitrust)

  • Daniel Herold

    (Justus-Liebig-University, Chair for Industrial Organization, Regulation and Antitrust)

  • Jan T. Schäfer

    (Justus-Liebig-University, Chair for Industrial Organization, Regulation and Antitrust)

Abstract

Aldi, the biggest discounter in Germany, started to systematically extend shopping hours of its stores in 2016. We interpret the decision to extend opening hours of a specific Aldi store as entry into a new market. By using a novel data set containing the opening hours of nearly all German grocery retailers, we find the following interesting correlations: The probability that a given Aldi outlet extends its shopping hours past 8 p.m. (i) increases if nearby Aldi outlets already extended shopping hours and (ii) decreases if nearby stores run by Aldi’s close competitors did not expand shopping hours past 8 p.m.. These results seem surprising in conjunction with cannibalization and residual demand, but can be explained by consumer and firm learning or market expansion.

Suggested Citation

  • Samuel Haas & Daniel Herold & Jan T. Schäfer, 2020. "Shopping Hours and Entry - an Empirical Analysis of Aldi’s Opening Hours," Journal of Industry, Competition and Trade, Springer, vol. 20(1), pages 139-156, March.
    • Handle: RePEc:kap:jincot:v:20:y:2020:i:1:d:10.1007_s10842-019-00316-1
    DOI: 10.1007/s10842-019-00316-1
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    References listed on IDEAS

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    Cited by:

    1. Yamada, Mai, 2020. "The Regulation Level of Business Hours," MPRA Paper 101392, University Library of Munich, Germany.

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    More about this item

    Keywords

    Shopping hours; Retailing; Coordination; Market entry;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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