Population Change and its Effects on the Retail Sector: An Exploratory Study

Abstract

James J. Chrisman is with the Department of Management of the University of Georgia, Athens, Georgia, USA. Little research has as yet attempted to determine what links exist between population change and business development. The purpose of this paper is to explore the relationship between population change - natural increases and net migration - and changes in the number of retail businesses and employees in the State of Georgia in the United States between 1970 and 1980. Retail trade was chosen for this research because of its dependence upon population for its viability. Although the research was concentrated on the 159 counties of Georgia, the results have wider implications and interest. Georgia experienced concurrent increases in its population and business sector during the 1970s. Contrary to expectations, natural increase had larger effects on the state's retail sector than net migration in most cases. Since an "inertia" effect may explain these findings, the 1980s may see similar or greater natural increases for the retail sector.