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Crowding-Out Effect on Local Retailers and Commercial Establishments by Invading Retail Chains

Authors: Brian Ceh*, Ryerson University, Tony Hernandez, Ryerson University, Julie Robertson, Ryerson University
Topics: Business Geography, Economic Geography
Keywords: retail, geography, store, canada, local,
Session Type: Paper
Presentation File: No File Uploaded


There has been longstanding controversy around the impact that large retailers have on smaller, independent, localized stores. This particular debate is heightened when a large retailer arrives in or locates near a community. This study examines this relationship using Canadian retail data from 2008 to 2015. It is shown that when large retail chain moves into a community there are some adverse impacts on local retail activity. Additionally, when several box-stores are located within a community the impact is magnified with long-standing adverse outcomes. Not only are local retailers crowded-out by the larger invading retail chains, but that retail vacancies also increase in a community. It is expected that as online retailing escalates this will only magnify the outcomes detected in this study.

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