New England's Retail Landscape: an Analysis of the County-Level Retail Restructuring, 1998 to 2008 Christopher J
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University of Connecticut OpenCommons@UConn Master's Theses University of Connecticut Graduate School 5-7-2011 New England's Retail Landscape: An analysis of the county-level retail restructuring, 1998 to 2008 Christopher J. Rappa University of Connecticut - Storrs, [email protected] Recommended Citation Rappa, Christopher J., "New England's Retail Landscape: An analysis of the county-level retail restructuring, 1998 to 2008" (2011). Master's Theses. 46. https://opencommons.uconn.edu/gs_theses/46 This work is brought to you for free and open access by the University of Connecticut Graduate School at OpenCommons@UConn. It has been accepted for inclusion in Master's Theses by an authorized administrator of OpenCommons@UConn. For more information, please contact [email protected]. New England’s Retail Landscape: An analysis of the county-level retail restructuring, 1998 to 2008 Christopher John Rappa B.A., University of Connecticut, 2009 B.S., University of Connecticut, 2009 A Thesis Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Arts at the University of Connecticut 2011 APPROVAL PAGE Master of Arts Thesis New England’s Retail Landscape: An analysis of the county-level retail restructuring, 1998 to 2008 Presented by Christopher John Rappa, B.A., B.S. Major Advisor ___________________________________________________________ Jeffrey P. Osleeb, Ph.D. Associate Advisor ________________________________________________________ William H. Berentsen, Ph.D. Associate Advisor ________________________________________________________ Carol Atkinson-Palombo, Ph.D. University of Connecticut 2011 ii ACKNOWLEDGEMENTS This thesis is dedicated to Alexander C. Vias, who spent countless hours answering my questions and providing me with guidance over the past year. Alex was the inspiration for this thesis and I could not have asked for a better major advisor. I also want to thank my associate advisors, Jeffrey Osleeb, William Berentsen, and Carol Atkinson-Palombo for their insightful comments and suggestions. Finally, I want to thank my parents, George and Josephine. I could not have come this far without their love and support. iii TABLE OF CONTENTS 1 INTRODUCTION...........................................................................................1 1.1 Background and Research Questions....................................................1 1.2 An Unprecedented Battle: St. Albans vs. Wal-Mart .............................3 1.3 Structure of the Thesis ..........................................................................5 2 LITERATURE REVIEW ............................................................................. 7 2.1 Introduction ..........................................................................................7 2.2 Classical Theory and Recent Extensions .............................................8 2.3 The New Retail Geography ................................................................12 2.4 Empirical and Geographical Analyses ...............................................20 2.5 Conclusion ..........................................................................................25 3 CONCEPTUAL MODEL, DATA, & METHODOLOGY ........................27 3.1 Introduction ........................................................................................27 3.2 Conceptual Model and Research Expectations ..................................27 3.3 Data ....................................................................................................33 3.4 Methodology, Part I ...........................................................................37 3.5 Methodology, Part II ..........................................................................43 3.6 Conclusion ..........................................................................................44 4 DISCUSSION I: 2-Digit NAICS Level Analysis ........................................46 4.1 Introduction ........................................................................................46 4.2 Retail Change .....................................................................................46 4.3 The Cluster Analysis ..........................................................................49 4.4 Empirical Results I: Nonmetropolitan County Clusters .....................54 iv 4.5 Empirical Results II: Metropolitan County Clusters ..........................60 4.6 Conclusion ..........................................................................................67 5 DISCUSSION II: 3-Digit NAICS Level Analysis .......................................69 5.1 Introduction ........................................................................................69 5.2 New England, in general ....................................................................71 5.3 Urban vs. Rural New England ...........................................................75 5.4 Clusters ...............................................................................................85 5.5 Conclusion ..........................................................................................97 6 CONCLUSION ...........................................................................................100 6.1 Findings............................................................................................100 6.2 Critique/Future Research .................................................................102 APPENDIX A: FIGURES EXCLUDED FROM TEXT ..............................110 APPENDIX B: TABLES EXCLUDED FROM TEXT ................................111 REFERENCES .................................................................................................122 v LIST OF TABLES Table 3.1 2-digit NAICS Code Definitions .........................................................38 Table 3.2 2-digit NAICS Code Definitions after Aggregation ............................39 Table 3.3 Socioeconomic Variables of Interest ...................................................40 Table 3.4 3-digit NAICS Code Breakdown of Retail Trade (Sector 44) .............44 Table 4.1 Place of Retail in the New England Economy .....................................47 Table 4.2 Retail Change and Socioeconomic Characteristics for the Seven Cluster Solution and Corresponding Socioeconomic Averages for New England ....................................................................................................51 Table 5.1 Types of Stores within each of the Twelve Retail Trade Subsectors ..70 Table 5.2 Structural Trends in New England’s Retail Sector, Entire Region ......72 Table 5.3 Structural Trends in New England’s Retail Sector, Urban vs. Rural Counties .................................................................................77 Table 5.4 Counties Losing Population, Number of Retail Categories with Less than Five Firms (2008), and Number of Firms with Less than 10 Employees (1998 & 2008) ...............................................................................84 Table 5.5 Structural Trends in New England’s Retail Sector, Cluster 3 .............87 Table 5.6 Structural Trends in New England’s Retail Sector, Cluster 4 .............88 Table 5.7 Structural Trends in New England’s Retail Sector, Cluster 1 .............89 Table 5.8 Structural Trends in New England’s Retail Sector, Cluster 2 .............91 Table 5.9 Structural Trends in New England’s Retail Sector, Cluster 6 .............92 Table 5.10 Structural Trends in New England’s Retail Sector, Cluster 7 .............93 Table 5.11 Structural Trends in New England’s Retail Sector, Cluster 5 .............96 Table 6.1 Examples of Local “Battles” with Big-Box Stores ............................104 Table 6.2 Examples of Size-Cap Ordinances on Retail Development in New England ..................................................................................................106 vi Table E.1 Population and Retail Sector Characteristics of Counties Removed from Analysis ................................................................................109 Table B.1 Socioeconomic variables prior to factor analysis ..............................111 Table B.2 Retail Sector in New England compared to U.S. and Regions .........111 Table B.3 Foreign Born Residents in Hartford, CT by neighborhood, 2000.....112 Table B.4 Examples of historic mills in Cluster 5 counties ...............................113 Table B.5 Structural characteristics omitted from in-text table, Urban vs. Rural ..............................................................................................114 Table B.6 Structural characteristics omitted from in-text table, Cluster 1 ........115 Table B.7 Structural characteristics omitted from in-text table, Cluster 3 ........116 Table B.8 Structural characteristics omitted from in-text table, Cluster 4 ........117 Table B.9 Structural characteristics omitted from in-text table, Cluster 2 ........118 Table B.10 Structural characteristics omitted from in-text table, Cluster 6 ........119 Table B.11 Structural characteristics omitted from in-text table, Cluster 7 ........120 Table B.12 Structural characteristics omitted from in-text table, Cluster 5 ........121 vii LIST OF FIGURES Figure 3.1 General Processes of Retail Restructuring and Related Socioeconomic Characteristics in Rural America ...........................................28 Figure 3.2 Typical and Hypothesized Outcomes Resulting from the Interaction between Retail Restructuring and Socioeconomic Conditions......30 Figure 3.3 New England Metropolitan/Nonmetropolitan