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

Samuel Haas (), Daniel Herold and Jan T. Schäfer
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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

Journal of Industry, Competition and Trade, 2020, vol. 20, issue 1, No 6, 139-156

Abstract: 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.

Keywords: Shopping hours; Retailing; Coordination; Market entry (search for similar items in EconPapers)
JEL-codes: L22 L41 L81 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:kap:jincot:v:20:y:2020:i:1:d:10.1007_s10842-019-00316-1

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DOI: 10.1007/s10842-019-00316-1

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