Modelling Supermarket Store Locations

Ian Molho and Michael Waterson

Scottish Journal of Political Economy, 1989, vol. 36, issue 4, 375-84

Abstract: The purpose of this paper is to suggest a theoretical approach to modeling multiplant firm locations and to apply it to store locations of a major British supermarket chain. Choice of store location is seen as a major weapon in long-run competition between rival groups and the authors focus upon explaining that aspect of selection concerned with broad catchment areas. The theory, and the results of the Tobit estimation of the model, indicate that distance from headquarters is a major determinant of store location, while local real wages, unemployment, and the density of rival shops also play a significant role. Copyright 1989 by Scottish Economic Society.

Date: 1989
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Persistent link: https://EconPapers.repec.org/RePEc:bla:scotjp:v:36:y:1989:i:4:p:375-84

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