Using data on store openings and household expenditure from 2009 to 2017, the study finds that the law sharply reduced C&C warehouse openings for the two leading French retail chains (by around 91% and 61% respectively), for both independent and store-adjacent warehouse formats alike. This was accompanied by a decline in C&C revenue growth of around 4-5% for the affected retailers.

The research also finds that the two warehouse formats affect local market concentration differently: adjacent warehouses tend to reinforce incumbents' positions, while independent warehouses more often introduce competition and reduce concentration. The authors conclude that entry regulation for omnichannel retail should account for this difference rather than applying uniform rules.

#Omnichannel #RetailCompetitiveness