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What's Green and Orange and Still Rents Movies? Investigating the Closures of Family Video Stores

Authors: JOE TOKOSH*,
Topics: Business Geography, Economic Geography
Keywords: retail, stores, marketing
Session Type: Paper
Day: 4/7/2020
Start / End Time: 10:15 AM / 11:30 AM
Room: Virtual Track 2
Presentation File: Download

At it's peak, Family Video operated over 700 locations in 19 US States. With that total decreasing to nearly 500 stores, this study asks and answers the question; What factors are most associated with the stores the company has decided to close. Using a comprehensive data base of all former and current Family Video locations, a binary logistic regression tests multiple influential variables as to their contributory relationship toward whether a store closed or not. Large populations, and larger sized stores were significant influences and indicated that stores with larger surrounding populations and more square footage space were more likely to close. Another interesting finding is that stores in large shopping plazas were more likely to close compared to standalone stores. Vacant and partially vacant cotenants increased the likelihood of a store closure and food or retail cotenants lowered the likelihood of a store closure. Implications and future research routes are discussed.

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