American Economic Journal:
Applied Economics
ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)
Rising Concentration of Household Shopping, Superstar Firms, and the Implications for Retail Markups
American Economic Journal: Applied Economics
(pp. 160–94)
Abstract
This paper documents an increase in the concentration of household shopping in the United States retail sector from 2004 to 2019. Despite a growing number of stores, households visit fewer stores, do more one-stop shopping, and increasingly shop at different retailers from each other. We find that the increasing availability of superstar retailers, the rise in product variety within stores, and the rise of online shopping contribute to these trends. We explore how these trends are linked with rising retail markups. Our calibration suggests a 5–10 percentage point increase in aggregate retail markups during this period.Citation
Leung, Justin H., and Zhonglin Li. 2026. "Rising Concentration of Household Shopping, Superstar Firms, and the Implications for Retail Markups." American Economic Journal: Applied Economics 18 (1): 160–94. DOI: 10.1257/app.20240081Additional Materials
JEL Classification
- D12 Consumer Economics: Empirical Analysis
- D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
- L11 Production, Pricing, and Market Structure; Size Distribution of Firms
- L81 Retail and Wholesale Trade; e-Commerce