The project combined newly developed theoretical models and statistical methods with a unique database covering all retail food stores in Sweden during the period 2001–2010. First, we investigated how consumers choose and value different store formats. Second, we analyzed firm strategies and estimated costs to enter and exit stores in local markets. A key contribution of the project was to simulate the development of the retail food market under a number of hypothetical changes. In particular, to evaluate the effects of changing the number of store formats in local markets and quantify how store profits are affected by higher costs for land and buildings.
The project was financed by the Swedish Retail and Wholesale Development Council.