The Location of New Anchor Stores within Metropolitan Areas

Posted: 26 Mar 2018

See all articles by Tingyu Zhou

Tingyu Zhou

Florida State University

John M. Clapp

University of Connecticut - Department of Finance

Date Written: 2015

Abstract

We examine the intra-metropolitan location decisions of retail stores by focusing on the openings of a comprehensive list of department (“anchor”) stores in the United States. The nonparametric K-density procedure shows that new stores are more dispersed than existing stores; their locations depend on existing competitive conditions. By applying a conditional logit model (CLM), we find that the location choices of new anchors can be associated with zoning, population, CBD and highway proximity, potential revenue and revenue growth, cannibalization, competition and localization economies. We find a lower bound on negative competitive effects in some regions. The CLM-based K-density confidence intervals explain actual location patterns within three miles.

Suggested Citation

Zhou, Tingyu and Clapp, John M., The Location of New Anchor Stores within Metropolitan Areas (2015). Regional Science and Urban Economics, Vol. 50, 2015. Available at SSRN: https://ssrn.com/abstract=3148986

Tingyu Zhou (Contact Author)

Florida State University ( email )

821 Academic Way
Tallahassee, FL 32306
United States

John M. Clapp

University of Connecticut - Department of Finance ( email )

School of Business
2100 Hillside Road
Storrs, CT 06269
United States
860-486-5057 (Phone)
860-486-0349 (Fax)

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