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Abstract
This research evaluates the effects of entry by supercenters and warehouse club retailers on the location of retail grocery
sales. Drawing on location theory and empirical works, spatial econometric convergence models are specifi ed and
estimated. Because grocery shopping is generally a local phenomenon, the spatial models are used to capture spillover
effects between geographical areas. The results show that supercenter and warehouse club retailers have a signifi cant
and large effect on growth of grocery sales, especially in low population areas. The results suggest that the large stores
are new grocery distribution channels, which are changing where consumers shop for groceries.