TILEC Work In Progress: Roxana Fernandez Machado (CREST Paris)
"The Alur law and the opening of Drives in the French grocery retail sector"
(with Bonnet C. , Bouamra Z., Chambolle C.)
Drive is an online-ordering service that provides shoppers the possibility to pick up their baskets by car at a given store and in a particular time slot. The rapid expansion of online grocery shopping and Drives openings raised concerns to the French Competition Authority, pushing for stricter regulation on Drives' openings.
This paper assesses the impact of the ALUR law that constrains the opening of Drives with warehouses since 2014 in France.
Given the differentiated impact of this law on the existing retail formats, we run a DiD analysis. Preliminary results show that the law had a significant and negative impact (-6.7%) on the openings of Drives with warehouses. The law affects both independent and adjoined warehouses. Since retailers follow different strategies on the expansion of Drives, we also explore the implications of the law at retailer level. Finally, we investigate potential implications on revenues.
Host: Florian Schütt
* For more information regarding this event please contact M. van Genk , 24 hours before the event at latest.