The evolution and impact of the general merchandise sector
29 Jan 2016-
About: The article was published on 2016-01-29. It has received 3 citations till now.
Citations
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TL;DR: In this article, the authors survey the empirical literature analyzing the consequences of entry regulation in retail industries and compare studies relying on quasi-experimental variation in regulation to those based on structural models and comment on strengths and challenges of each approach.
Abstract: We survey the empirical literature analyzing the consequences of entry regulation in retail industries. We begin by providing some background on the most common forms of entry regulation and their rationales. We use OECD data to show evidence of a general trend towards less stringent entry regulation in the past 15 years. However, substantial heterogeneity persists across countries. Next, we review a number of empirical contributions that analyze the effects of entry regulation on market outcomes. We compare studies relying on quasi-experimental variation in regulation to those based on structural models and comment on strengths and challenges of each approach. We summarize the results obtained by the literature with respect to several important outcomes that entry regulation can be expected to affect, such as market structure, entry, productivity and employment. We conclude presenting a few relevant topics that the literature has yet to address and, therefore, represent promising avenues for future research.
7 citations
Posted Content•
TL;DR: In this article, the authors examined changes in the retail sector in the US over the period 1999 to 2017, and found that the negative impact of online commerce on physical retail during this period was consistent with anecdotal evidence.
Abstract: We examine changes in the retail sector in the US over the period 1999 to 2017. While there were fewer physical stores in 2017 compared to the start of the period (consistent with the widely reported notion of a “retail apocalypse”), other indicators including employment, real sales, real value added and real payroll of brick and mortar retailers had recovered to their pre-Great Recession peaks by 2017. Consistent with anecdotal evidence, we document a negative impact of online commerce on physical retail during this period. In contrast, the growth in big box stores (which slowed in the aggregate after 2009) was positively correlated with the growth of other retail physical activity across counties. We document a striking rise in restaurants (NAICS 722), so that including them in the retail sector (as in the older SIC classification) yields much stronger trends for physical retail activity. We find this growth in restaurants was positively correlated with growth of other physical retail, so it was not propelled by a reduction in costs induced by the decline of other physical retail. Instead, we find suggestive evidence that two-thirds (one-half) of the growth in restaurant establishments (employment) can be attributed to the relative increase in consumer expenditure share for restaurant food. We briefly summarize emerging trends, and note significant venture capital funding for delivery and other services that may complement traditional physical retail stores. Preliminary analysis of the (short-term) impact of the ongoing COVID-19 pandemic shock shows a very negative impact on retail, and the particularly precipitous effect on restaurants raises concerns about the likely long-term effects of the COVID-19 crisis on many local communities.
5 citations
01 Jan 2022
TL;DR: In this article , the prime landmarks of institutional changes in Japanese retail structure are discussed, and the authors discuss the importance of these landmarks in the evolution of the Japanese retail industry in general.
Abstract: This study aims to discuss the prime landmarks of institutional changes in Japanese retail structure.
References
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TL;DR: In this article, the authors survey the empirical literature analyzing the consequences of entry regulation in retail industries and compare studies relying on quasi-experimental variation in regulation to those based on structural models and comment on strengths and challenges of each approach.
Abstract: We survey the empirical literature analyzing the consequences of entry regulation in retail industries. We begin by providing some background on the most common forms of entry regulation and their rationales. We use OECD data to show evidence of a general trend towards less stringent entry regulation in the past 15 years. However, substantial heterogeneity persists across countries. Next, we review a number of empirical contributions that analyze the effects of entry regulation on market outcomes. We compare studies relying on quasi-experimental variation in regulation to those based on structural models and comment on strengths and challenges of each approach. We summarize the results obtained by the literature with respect to several important outcomes that entry regulation can be expected to affect, such as market structure, entry, productivity and employment. We conclude presenting a few relevant topics that the literature has yet to address and, therefore, represent promising avenues for future research.
7 citations
Posted Content•
TL;DR: In this article, the authors examined changes in the retail sector in the US over the period 1999 to 2017, and found that the negative impact of online commerce on physical retail during this period was consistent with anecdotal evidence.
Abstract: We examine changes in the retail sector in the US over the period 1999 to 2017. While there were fewer physical stores in 2017 compared to the start of the period (consistent with the widely reported notion of a “retail apocalypse”), other indicators including employment, real sales, real value added and real payroll of brick and mortar retailers had recovered to their pre-Great Recession peaks by 2017. Consistent with anecdotal evidence, we document a negative impact of online commerce on physical retail during this period. In contrast, the growth in big box stores (which slowed in the aggregate after 2009) was positively correlated with the growth of other retail physical activity across counties. We document a striking rise in restaurants (NAICS 722), so that including them in the retail sector (as in the older SIC classification) yields much stronger trends for physical retail activity. We find this growth in restaurants was positively correlated with growth of other physical retail, so it was not propelled by a reduction in costs induced by the decline of other physical retail. Instead, we find suggestive evidence that two-thirds (one-half) of the growth in restaurant establishments (employment) can be attributed to the relative increase in consumer expenditure share for restaurant food. We briefly summarize emerging trends, and note significant venture capital funding for delivery and other services that may complement traditional physical retail stores. Preliminary analysis of the (short-term) impact of the ongoing COVID-19 pandemic shock shows a very negative impact on retail, and the particularly precipitous effect on restaurants raises concerns about the likely long-term effects of the COVID-19 crisis on many local communities.
5 citations