The Effect of Entry by Supercenter and Warehouse Club Retailers on Grocery Sales and Small Supermarkets: A Spatial Analysis

This research evaluates the effects of entry by supercenters and warehouse clubs on retail grocery sales and the exit of small supermarkets. Drawing on literature from trade area analysis, agglomeration, and location theory, spatial econometric models are estimated. Results suggest that warehouse and supercenter stores have a significant and large effect on the change in grocery sales and the exit of small supermarkets operating at the county level