Abstract
The predictability of factors discussed under the Social Optimality Model by Flath and Nariu (1996) in explaining the density of retailers in Malaysia are explored. The empirical result shows that except for population density, all factors are in accord with the predictions of the model. In addition, the factors that led to a decline in the number of small-scale retailers and expansion of large-scale retailers are explored, and the study concludes with policies to deal with this phenomenon.
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