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Abstract Electronic retailer changes the location mechanism of brick-and-mortar retailer which may cause the shop-closed tide. With regard to this phenomenon, this study sets up a spatial competition model with an electronic retailer and two brick-and-mortar retailers to reveal the formation of the shop-closed tide within brick-and-mortar retailers from the perspective of spatial location, analyzing the spatial location strategy of brick-and-mortar with quality difference among dual-channel retailers. Different from traditional spatial theory, brick-and-mortar retailers will not locate at the center of the city even if linear transport cost, depending on the ratio of inutility cost and transport cost. Unlike intuition, it proves that electronic retailer may make a higher price than brick-and-mortar. Quality difference pushes brick-and-mortar retailers to locate at the end of the market. Traffic improvement and network supervision will help to agglomerate among brick-and-mortar, boosting intrinsic motivation of the city development.
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Received: 11 October 2016
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2017, Vol. 14 
