David Blakemore

The purpose of this study was to examine the factors that influence the patterns of out shopping and retail structure in small towns across Canada. A sample of 98 small towns was examined, using stepwise regression, to identify factors affecting out shopping and linkage analysis to construct 'clusters' for the retail structure of small towns. The literature review helped to identify a common measure of out-shopping (pull factors) and variables that might influence variation in this phenomenon from one town to the next. A total of 16 variables were tested, of which four were used in the final model construction. The results indicate that the percent of population aged 65 or more, the percent of population employed and the total number of retail locations were associated with increased levels of local consumer shopping (a positive influence on pull factors). The presence of a Wal-Mart location within 35 kilometres incurred a negative relationship with pull factors (increased levels of out shopping). Linkage analysis identified three main types of retail activity that tended to cluster together, home furnishings, electronics, and auto repair. This presence of these types of retailers in small towns suggested higher levels of local economic health. Two of the types, home furnishings and electronics, incurred a significant, positive relationship with pull factors, suggesting that towns with these types of businesses in their retail structure were enjoying higher levels of local consumer shopping. The results of this study may be of particular use to municipal planners interested in fostering a viable and sustainable commercial sector within their communities in the face of the modern retail revolution.