Spatial inequality and dynamics of foreign hypermarket retailers in China

Abstract

AbstractThe globalisation of retailing has intensified since the mid‐1990s with the rise of a group of international retailers. Foreign retailers have greatly impacted the Chinese retail market since the opening up of the retail sector in 1992. This study aims to examine spatial inequality and dynamics of foreign hypermarket retailers at different geographic scales in China. Although the relative gaps in foreign hypermarkets among Chinese regions are narrowing, the absolute gaps are widening. Logistic regression models are used to identify locational determinants of foreign retailers Carrefour, Wal‐Mart, and RT‐Mart at the intercity level. Carrefour prefers cities with larger urban district populations, longer time of being open to international retailers, and more foreign investment. While urban district populations are significant to Wal‐Mart and RT‐Mart as well, they favour cities where people have higher annual salaries and aim to achieve internal economies of scale at the provincial level. The three leading foreign retailers also have different first‐city and city size preferences in their provincial expansions.