Supersize It: The Growth of Retail Chains and the Rise of the 'Big Box' Retail Format
University of Missouri - Department of Economics
Shawn D. Klimek
U.S. Census Bureau - Center for Economic Studies
Van H. Pham
Baylor University - Department of Economics
May 10, 2010
Journal of Economics and Management Strategy, Forthcoming
This paper documents and explains the recent rise of "big box" general merchandisers. Data from the Census of Retail Trade for 1977-2007 show that general-merchandise chains grew much faster than specialist retail chains, and that general merchandisers that added the most stores also disproportionately increased their product offerings. We explain these facts with a model in which a retailer's scale economies interact with consumer gains from one-stop shopping to generate a complementarity between a retailer's scale and scope.
Number of Pages in PDF File: 54
Keywords: Retail, Chain, Big Box, Superstore, Economies of Scale, General Merchandise, One Stop Shopping
JEL Classification: L11, L25, L81working papers series
Date posted: August 21, 2008 ; Last revised: December 6, 2011
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