Portuguese food retailers – Exploring three classic theories of retail location

Abstract

This article sets forth results from an exploratory empirical study that aimed to test the predictive validity of three classic location theories: central place theory, spatial interaction theory and the principle of minimum differentiation. Correlation, linear regression and analytical procedures in a Geographic Information System were used to reveal relationships between variables. The results show that all theories find significant support. It was possible to relate store location with distance to the centre, population density and competitor's location. It was also found that store location is related to consumer's proximity to the store (when stores are smaller) and the store's attractiveness to the consumer (when stores are larger).