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Empirical Investigation - Impact of Retail Location on Retailer Revenues

This is a research report on Empirical Investigation - Impact of Retail Location on Retailer Revenues uploaded by Smartchap MP in category: All Documents »  Retail Management »  Locational & Store Strategy section of our research repository.
1612 views, 0 comments, Last Update: Feb 28, 2015.
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Tags: Empirical Investigation , Retail Location , Retailer Revenues
Description:
This paper investigates the impact of store location, a retailer's most costly and long-term marketing mix decision, on retailer revenues. We estimate models of consumer spending at the leading packaged goods retailers in a metropolitan market based on two dimensions of retail location: (i) proximity to consumers, i.e., travel times, and (ii) proximity to other stores, i.e., agglomeration. Both are important predictors of consumer spending and hence retailer revenues. Moreover, location effects are heterogeneous and often asymmetric across retail formats.



 

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