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Larsson J.P.,Jonkoping International Business School | Larsson J.P.,Center for Entrepreneurship and Spatial Economics | Oner O.,Jonkoping International Business School | Oner O.,Center for Entrepreneurship and Spatial Economics
Annals of Regional Science | Year: 2014

In this paper, we employ geo-coded data at a fine spatial resolution for Sweden's metropolitan areas to assess retail co-location. Retail clusters and their place in urban space are assessed from several angles. The probability of a specific type of retail unit to be established in a 250 by 250 m square is modelled as a function of (i) the presence of other similar retail establishments, (ii) the presence of stores that belong to other retail sectors and (iii) other characteristics of the square area, and its access to demand in the pertinent urban landscape. The analysis clarifies which types of retail clusters one can expect to find in a metropolitan region, as well as their relationship to the urban landscape. We analyse three distinct types of stores: clothing, household appliances, and specialized stores. Stores with high intensities of interaction are co-located, and predominantly located close to the urban cores, consistent with predictions from bid rent theory and central place theory. We further document negative location tendencies between shops that sell frequently purchased products and shops that sell durables. Moreover, our results highlight the importance of demand in the close surroundings, which is particularly strong for small-scale establishments. © 2014 Springer-Verlag Berlin Heidelberg. Source

Klaesson J.,Center for Entrepreneurship and Spatial Economics | Oner O.,Center for Entrepreneurship and Spatial Economics | Oner O.,Research Institute of Industrial Economics
Review of Regional Studies | Year: 2015

Retail is concentrated in areas where demand is high. A measure of market potential can be used to calculate place-specific demand for retail services. The effect of distance on market potential depends on the willingness of consumers to travel for the products they purchase. The spatial reach of demand is frequently operationalized using a distance-decay function. The purpose of this paper is to estimate such distance-decay functions for different branches of the retail sector. The paper uses spatial data from the Stockholm region in Sweden. The results indicate that, in line with theory, there are indeed differences in the distance decay of demand among retail subsectors. © 2015, Southern Regional Science Association. Source

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