Abstract

http://ssrn.com/abstract=2227172
 
 

Citations



 


 



Supermarket Entry and the Survival of Small Stores


Fernando Borraz


Universidad de la Republica - Faculty of Social Sciences; Central Bank of Uruguay

Juan Dubra


University of Montevideo - Department of Economics

Daniel Ferres


University of Montevideo - Department of Economics

Leandro Zipitria


dECON - FCS - UdelaR

2013

Review of Industrial Organization, 2013

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. By using detailed geographical information about supermarkets and smaller stores we are able to identify the link between entrants 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 butchers, bakeries, grocery and fresh pasta shops but significance varies with model specification for kiosks.

Keywords: supermarket entry, competition, small store attrition

JEL Classification: C41, D40, L10, L13, L81

Accepted Paper Series


Not Available For Download

Date posted: March 3, 2013 ; Last revised: March 5, 2013

Suggested Citation

Borraz, Fernando and Dubra, Juan and Ferres, Daniel and Zipitria, Leandro, Supermarket Entry and the Survival of Small Stores (2013). Review of Industrial Organization, 2013. Available at SSRN: http://ssrn.com/abstract=2227172

Contact Information

Fernando Borraz
Universidad de la Republica - Faculty of Social Sciences ( email )
CP 11200 Montevideo
Uruguay
Banco Central del Uruguay ( email )
Diagonal Fabini 777
Montevideo, CP 11100
Uruguay
Juan Dubra
University of Montevideo - Department of Economics ( email )
Prudencio de Pena 2440
Montevideo, CP 11600
Uruguay
5982 707 4461 (Phone)
HOME PAGE: http:\\www2.um.edu.uy\dubraj
Daniel Ferres
University of Montevideo - Department of Economics ( email )
Prudencio de Pena 2440
Montevideo, CP 11600
Uruguay
Leandro Zipitria (Contact Author)
dECON - FCS - UdelaR ( email )
Constituyente 1502
Montevideo, CP 11620
Uruguay
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