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Diane Publishing Books
Why Are Wal-Mart and Target Next-Door Neighbors?
Jenny Schuetz (au)
A notable change in the U.S. retail market over the past 20 years has been the rise of Big Box stores, retail chains with large stores selling a wide range of consumer goods at discount prices. Relatively little is known about how Big Box stores choose locations. This study examines where new big Box stores locate with respect to 3 types of existing establishments: own-firm stores, other retailers in the same product space (competitors), and retailers in other produce spaces (complements). Results indicate that new Big Box stores tend to avoid existing own-firm stores and locate near complementary Big Box stores. However, there is little evidence that new Big Boxes avoid competitors. Firms in the same product space may not be perfect substitutes, or firms may prefer to share consumers in a desirable location rather than cede the entire market to competitor firms. Tables. This is a print on demand report.
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