Best Use of Retail Space Depends on Neighborhood(Effects of Neighbourhood Characteristics on Store Performance Supermarkets versus Hypermarkets)

This study analyzed the impact of neighborhood characteristics on the types of products sold in supermarkets and hypermarkets (i.e., large retail stores providing products and services of both department stores and grocery stores) in Belgium. Be aware that shopping patterns in supermarkets may be more affected by neighborhood characteristics than larger hypermarkets; therefore, supermarkets should investigate and stock products best suited to their neighborhoods For hypermarkets in neighborhoods with higher income households, dedicate more space to expensive food products.

For hypermarkets in areas with specialty stores, dedicate more space to groceries, self-service dairy, and gourmet meat and less space to clothing. For hypermarkets in areas where people commute to work, dedicate more space to clothing and audio-video products.

Supermarkets in poorer neighborhoods sold more clothing than hypermarkets, perhaps due to better prices, seasonal promotions, and consumers avoiding specialty clothing stores or hypermarkets. However, in neighborhoods with higher income families, supermarkets and hypermarkets sold less clothing, fabrics, and household goods, possibly due to competition from specialty stores.

Hypermarkets sold less clothing, dairy, gourmet meat, and fish when sited near specialty stores that sold the same products, perhaps due to the inconvenience of the large hypermarkets format or customers perceiving specialty stores to have fresher goods.

A. Verhetsel, Department of Transport and Regional Economics, University of Antwerp, Belgium