Winners and Losers: Store-Type and regional variations in response to mandatory retail closures

This study investigates how mandatory Sunday closures of large grocery chains in Korea affect sales transactions of nearby retailers, focusing on retail types and regional characteristics. Using two years of credit card transaction data from four cities with different population sizes and densities, we analyze changes in transaction volumes at non-chain grocery retailers and convenience stores. While non-chain grocery retailers, which are often considered as substitutes for large grocery chains, experience significant declines in transaction volumes on closure days, convenience stores show increased transactions. These effects are more pronounced in smaller cities, but weaker in larger ones. This study contributes to debates on retail regulation by showing how policy effects vary across retail types and regions and also provides insights into the functioning and various impacts of operating hour regulations in complex retail environments.