Supermarket Entry and the Survival of Small Stores
We analyze the effect of supermarket entry on the exit of small stores in the food retailing sector in Montevideo between 1998 and 2007. We use detailed geographical information to identify the link between supermarket entry and the exit of nearby small stores. Entry of supermarkets using small- to...
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| Published in | Review of industrial organization Vol. 44; no. 1; pp. 73 - 93 |
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| Main Authors | , , , |
| Format | Journal Article |
| Language | English |
| Published |
Boston
Springer
01.02.2014
Springer US Springer Nature B.V |
| Subjects | |
| Online Access | Get full text |
| ISSN | 0889-938X 1573-7160 |
| DOI | 10.1007/s11151-013-9379-7 |
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| Abstract | We analyze the effect of supermarket entry on the exit of small stores in the food retailing sector in Montevideo between 1998 and 2007. We use detailed geographical information to identify the link between supermarket entry and the exit of nearby small stores. Entry of supermarkets using small- to medium-size formats creates a competitive threat for the existing small stores, decreasing their probability of survival. The result is robust to several model specifications and varying definitions of what constitutes a supermarket. The impact of supermarket entry is unequivocal for groceries, bakeries, fresh pasta shops, and butcher shops. |
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| AbstractList | We analyze the effect of supermarket entry on the exit of small stores in the food retailing sector in Montevideo between 1998 and 2007. We use detailed geographical information to identify the link between supermarket entry and the exit of nearby small stores. Entry of supermarkets using small- to medium-size formats creates a competitive threat for the existing small stores, decreasing their probability of survival. The result is robust to several model specifications and varying definitions of what constitutes a supermarket. The impact of supermarket entry is unequivocal for groceries, bakeries, fresh pasta shops, and butcher shops.[PUBLICATION ABSTRACT] We analyze the effect of supermarket entry on the exit of small stores in the food retailing sector in Montevideo between 1998 and 2007. We use detailed geographical information to identify the link between supermarket entry and the exit of nearby small stores. Entry of supermarkets using small- to medium-size formats creates a competitive threat for the existing small stores, decreasing their probability of survival. The result is robust to several model specifications and varying definitions of what constitutes a supermarket. The impact of supermarket entry is unequivocal for groceries, bakeries, fresh pasta shops, and butcher shops. Reprinted by permission of Springer We analyze the effect of supermarket entry on the exit of small stores in the food retailing sector in Montevideo between 1998 and 2007. We use detailed geographical information to identify the link between supermarket entry and the exit of nearby small stores. Entry of supermarkets using small- to medium-size formats creates a competitive threat for the existing small stores, decreasing their probability of survival. The result is robust to several model specifications and varying definitions of what constitutes a supermarket. The impact of supermarket entry is unequivocal for groceries, bakeries, fresh pasta shops, and butcher shops. |
| Author | Ferrés, Daniel Borraz, Fernando Dubra, Juan Zipitría, Leandro |
| Author_xml | – sequence: 1 givenname: Fernando surname: Borraz fullname: Borraz, Fernando – sequence: 2 givenname: Juan surname: Dubra fullname: Dubra, Juan – sequence: 3 givenname: Daniel surname: Ferrés fullname: Ferrés, Daniel – sequence: 4 givenname: Leandro surname: Zipitría fullname: Zipitría, Leandro |
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| CitedBy_id | crossref_primary_10_1007_s11151_019_09699_1 crossref_primary_10_15722_jds_16_6_201806_55 crossref_primary_10_1007_s10460_024_10561_8 crossref_primary_10_1007_s10842_014_0175_3 crossref_primary_10_5209_AGUC_60476 crossref_primary_10_1257_app_20150310 crossref_primary_10_1257_pol_20210817 crossref_primary_10_1515_jafio_2017_0029 crossref_primary_10_1007_s00181_014_0834_6 crossref_primary_10_1111_joie_12096 crossref_primary_10_1108_BIJ_04_2021_0189 crossref_primary_10_2139_ssrn_2425859 crossref_primary_10_1177_0973801018800082 crossref_primary_10_1016_j_dss_2023_114036 crossref_primary_10_1016_j_jretai_2022_02_006 crossref_primary_10_1016_j_econmod_2023_106585 crossref_primary_10_1016_j_habitatint_2024_103245 crossref_primary_10_1016_j_worlddev_2021_105631 crossref_primary_10_17657_jcr_2022_1_31_33 crossref_primary_10_3390_su7066626 |
| Cites_doi | 10.1111/j.1468-0297.2009.02348.x 10.1016/j.labeco.2007.11.004 10.3982/ECTA6649 10.1162/0034653054638355 10.1111/j.1465-7295.2007.00091.x 10.1080/09578810601070613 10.1007/s11151-011-9278-8 10.1162/0034653053327568 10.1162/003355302320935052 10.1002/1520-6297(200124)17:1<105::AID-AGR1005>3.0.CO;2-N 10.1111/1467-7679.00178 10.1920/re.ifs.2024.0787 10.3386/w9120 10.3386/w10712 |
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| Keywords | Competition Small store attrition Supermarket entry |
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| SubjectTerms | Bakeries Business structures Butcher shops Butchering Competition Competitive advantage Developing countries Discount department stores Economics Economics and Finance Grocery industry Grocery stores Implementation maturity model Industrial Organization LDCs Market entry Microeconomics Neighborhoods Pasta Private stores Retail industry Retail stores Retail trade Retailing Retailing industry Shopping Shops Small & medium sized enterprises-SME Studies Supermarkets Survival Uruguay |
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| Title | Supermarket Entry and the Survival of Small Stores |
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