Comments on: Why Do Competing Stores Open Up Next To Each Other?

By: JimJuber

JimJuber — Mon, 23 Nov 2009 19:08:20 +0000

Hmmm…..I would subscribe to the notion of vehicle traffic. Meaning, you build where vehicle traffic exist. Its not that the customer is clueless, its because of existing traffic. All sales models are built on getting customers in the door. Think about it, all resturants, grocery stores, gas stations, drug stores are local on a main arterials with stop lights. Vehicle traffic.

By: Weekend reading: All abroad

Weekend reading: All abroad — Sat, 21 Nov 2009 17:15:33 +0000

[...] Why do competing stores open next to each other? – Weakonomics [...]

By: Kevin M

Kevin M — Mon, 16 Nov 2009 18:08:02 +0000

Even better is when the fast food joints are in the same building – my wife and I love the KFC/Taco Bell combo. She gets her bean burrito, I get my chicken, everyone wins!

By: the weakonomist

the weakonomist — Mon, 16 Nov 2009 16:29:21 +0000

This is why I cited other examples. BB and CC, and the drug stores all basically sell the same stuff too. HD and Lowes have exclusive products though, paint is real big here.

By: Philip

Philip — Mon, 16 Nov 2009 15:54:15 +0000

The problem I see with one instance anyway is Lowe’s/Home Depot. They sell the same products, unlike your car example not having the one that they want. Since they both carry the same product again it seems that they would not be able to sway the customer unless there is another factor.

Guess I need to read the article you linked now.

By: Chick J

Chick J — Sat, 14 Nov 2009 17:20:27 +0000

Talk about serendipity. I just pick up my granddaughter and we were talking about why there was a CVS going up right across from a Rite Aid. We both thought it was silly to have two like business near each other. She said she had always wonder why that all the gas stations were group together , too.

Now we will have more to talk about when I take her home. Thanks.

By: Rob Bennett

Rob Bennett — Sat, 14 Nov 2009 14:23:21 +0000

Another one like this is that having competitors often helps a business. If you are the only one in a field, you have the market to yourself but few people know about what you sell. If there are competitors, you have to fight with them for business but they all help spread the word about the benefits of the product or service being offered.

Rob
Rob Bennett´s last blog ..Podcast #177 — All About Backtesting

By: Emily

Emily — Sat, 14 Nov 2009 13:27:28 +0000

Thinking smaller, with fast food, we have a Burger King and McDonald’s across the street from each other. When I want to pick up BK, my husband wants McD or vice versa. We can each get what we want without much trouble. Both companies get a sale.
Emily´s last blog ..Toy Storage

By: Craig

Craig — Fri, 13 Nov 2009 17:01:59 +0000

It’s for the aggregation of services. More people are likely to stop in the area helping out both companies. You can also trade and help out with services and learn from one another. That’s why all tech is in Silicon Valley, all casinos in Vegas, all fashion in NY and so many others.