Location, Location, Location

A flower shop near Olivet Memorial Park in Colma, CA. (Photo: Tom Hilton)

One of the private-sector retail stores adjacent to the main Austin cemetery sells grave monuments and related items, while another is a major gardening center. These are sensible location decisions—these retailers provide convenience to customers who will be using the cemetery.

A similar example is provided by the locational choice of our sons’ orthodontist—directly across the street from the local middle school. These are examples of agglomeration economies, but are in the retail sector and based on consumer demand, not production.

I wonder what are other good/bizarre examples in which small retail firms’ locational choices are determined by the fixed location of a major public facility that attracts potential customers? Brothels next to seaports?

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COMMENTS: 65

  1. Charlie says:

    In my city there is a “Planned Parenthood” across the street from a highschool in a lower-class neighborhood.

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  2. Alex K says:

    Here in the UK, funeral directors are near hospitals & lawyers set up near magistrates courts.

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  3. Andreas Moser says:

    I recently saw a service for sightseeing tourists advertised right outside a cemetery in Malta: http://andreasmoser.wordpress.com/2011/12/13/mellieha-malta-cemetery/ – I found it odd.

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  4. Erik says:

    This actually could be examined (I think) with a database like D&B. My guess is that you would find a classic example of amalgamation economies with Law firms in close proximity to courthouses. The interesting thing would be then to find variances across metros – examining whether the composition of metropolitan economies altered the incentives of the lawyers to be close to the courthouses or close to the clients.

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  5. Ryan Phelps says:

    Passport photo shops near a consulate.

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  6. Charlie Alfred says:

    Souvenier shops and taverns next to publicly financed sports arenas

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  7. Matt says:

    Auto insurance agency across the street from my high school, orthodontist 3 blocks down, convenience store next door.

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  8. Christian says:

    One obvious one are Hotels next to airports and paper/bookstores next to schools

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