When does retail clustering support store survival? The roles of store attributes and market conditions

Retail clustering—retailers locating near one another—is common, yet its implications for store survival remain debated. Clustering may increase customer traffic and reduce search costs, but it can also intensify local competition. Drawing on consumer-based agglomeration theory, this study applies an established dartboard-based clustering measure to the retail context and examines how clustering relates to establishment survival in Los Angeles County from 1990 to 2020. Using Cox proportional hazards models with time-varying covariates, we find that the survival benefits of clustering are highly contingent. Clustering primarily benefits small chains, younger stores, and establishments in higher-income areas, while its benefits diminish or may reverse for larger chains, older stores, and establishments in lower-income areas. These findings clarify when retail clustering supports survival and offer guidance for retail location strategy.