Distance and number of retail stores: Land area as a proxy for distance

This article examines the relationship between distance and the number of retail stores in SMSA's and states by using land area as a proxy for distance between stores and consumers. Correlation analysis showed no statistically significant relationship between land area and the number of stores. This lack of relationship is attributed to the inadequacy of the land area variable as a proxy for distance. Consequently, actual measures of distance are needed to appraise the relationship between distance and numbers of retail stores.