Does small store location matter? A test of three classic theories of retail location

Reginald A Litz, Gulasekaran Rajaguru

Research output: Contribution to journalArticleResearchpeer-review

21 Citations (Scopus)


Just how important is physical location as a source of small-firm advantage? In this paper we consider this question by testing the predictive validity of three classic perspectives: central-place theory, spatial interaction theory and the principle of minimum differentiation. In addition, we identify and test two managergrounded hypotheses focusing on locational continuity and transactional convenience. We test these hypotheses on a sample of small U.S. retail hardware stores and find significant support for central-place theory and both manager-grounded hypotheses.
Original languageEnglish
Pages (from-to)477-492
Number of pages16
JournalJournal of Small Business and Entrepreneurship
Issue number4
Publication statusPublished - 2008


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