Bricks and Clicks: The Impact of Physical Store Dynamics on E‑Commerce

David Bounie, John Galbraith, Gabrielle Gambuli.

2026

Abstract

Spatial inequalities in retail access persist as firms concentrate in dense areas. While e-commerce may reduce such disparities, evidence remains mixed. This paper examines how individuals adjust online spending in response to changes in local access to brick-and-mortar retail. Using store openings and closures as shocks, we combine them with high-frequency card-level transaction data to track purchases across channels at a fine spatial scale. We implement an event-study difference-in-differences design to test whether reduced local access increases online spending, indicating substitution toward e-commerce.