Location strategies of broad-line retailers: an empirical investigation

This research is an exploratory investigation into location strategies used by broad-line specialist retailers. Location data for 86 broad-line specialists in the home repair and office supply category located in three southeast metropolitan areas are analyzed. Using distance as a measure of retail structure, it is shown that broad-line specialist retailers tend to locate close to general merchandise retailers. Also, broad-line specialists employ two location strategies with respect to other broad-line specialists-proximity (locating close to a competing broad-line specialist) and distancing (not locating close to a competing broad-line specialist). Moreover, the adoption of proximity or distancing as a location strategy depends upon market characteristics. Broad-line specialists tend to use proximity in trade areas with high income, high population density, high per capita income, with younger populations, and high home ownership. Managerial implications and suggestions for future research are offered.