Research areas

The regional significance of retail

During the latest decades, retailing has been going through a period of extensive structural transformation. External retail areas have grown outside city centers, creating challenges for retailing  in both city centers  and suburbs. E-commerce has also increased its market share at the expense of traditional retailing, with major consequences for the geographical location of trade. Research that focuses on understanding these developments constitute one of our priority research areas at the Institute of Retail Economics.

These subjects have been studied in several research projects. In one of our completed projects, we have analyzed the importance of retail investments as a cause of regional growth. The results show that spillover effects due to entry by large retailers can create regional growth , especially in small and medium-sized cities. This is of major importance as industrial policy tends to be directed at supporting R&D-intensive industries, while few investments are targeting the retail industry. Within this research area, we have also conducted research on how municipalities are affected by new IKEA establishments, and how support for rural communities can be designed to ensure access to food retailing also in these remote regions.

In our ongoing research, we analyze the role of retailing for place attractiveness, by, for example, investigating how large retail establishments affect property values. We have also chosen to focus research on the challenge of how to create attractive city centers in smaller cities, in a time when retail activities are more and more concentrated in external retail areas.

Scientific publications written in this area

Sven-Olov Daunfeldt, Oana Mihaescu, Helena Nilsson & Niklas Rudholm.

Spillover effects when IKEA enters: Do incumbent retailers win or lose?

Forthcoming Papers in Regional Science.
Yujiao Li, Johan Håkansson, Oana Mihaescu & Niklas Rudholm

Agglomeration economies in urban retailing: are there productivity spillovers when big-box retailers enter urban markets?

Applied Economics Letters
Han, M., Mihaescu, O., Li, Y., and Rudholm, N.

​Comparison and one-stop shopping after big-box retail entry: A spatial difference-in-difference analysis.

Journal of Retailing and Consumer Services 40:175-187.
vom Hofe, R., Mihaescu, O. & Lynne Boorn, M.

Are homeowners willing to pay more for access to parks? Evidence from a spatial hedonic study of the Cincinnati, Ohio, USA park system.

Journal of Regional Analysis and Policy, 48(3)
Bergman, M.A., Granlund, D., & Rudholm, N.

Squeezing the last drop out of your suppliers: an empirical study of market-based purchasing policies for generic pharmaceuticals.

Oxford Bulletin of Economics and Statistics, 76, 969-996.
Carling, K., Håkansson, J., Meng, X., & Rudholm, N.

The effects of taxing truck distance on CO2 emissions from transports in retailing.

Transportation Research Part A: Policy and Practice, 97, 47-54.
Daunfeldt, S-O., Mihaescu, O., Nilsson, H., & Rudholm, N.

What happens when IKEA comes to town?

Regional Studies 51(2): 313-323.
Mihaescu, O., & Rudholm, N.

Defining relevant product markets for pharmaceuticals.

Bulletin of Economic Research, 69(4), E126-E149.