Do retailers benefit from network affiliation in all locations

Magali Chaudey (), Muriel Fadairo () and Frédéric Perdreau ()
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Magali Chaudey: Univ Lyon, UJM Saint-Etienne, GATE UMR 5824
Muriel Fadairo: Université Savoie Mont-Blanc – Irege Lab.
Frédéric Perdreau: Univ Lyon, UJM Saint-Etienne, COACTIS EA 4161

Economics Bulletin, 2020, vol. 40, issue 2, 1623-1633

Abstract: When a retailer enters a new market, the location and the decision whether to join a branded network are two major choices that must be faced. This empirical paper concerns the performance outcome of these choices. Based on French data, we measure the outlet performance with respect to turnover growth and economic return. Our analytical framework and our results highlight that network membership does not systematically provide advantages at the outlet level. The advantages of network membership decrease with increasing distance from the locus of economic activity.

Keywords: Performance; Location; Affiliated retailer; Independent retailer (search for similar items in EconPapers)
JEL-codes: L2 M2 (search for similar items in EconPapers)
Date: 2020-06-07
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Citations: View citations in EconPapers (1)

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