This paper presents an empirical analysis of spatial competition among major retail chains in the grocery markets of Moscow and St. Petersburg. Using an ordered probit model and spatial data, the determinants of entry and exit decisions in local markets are examined. The results reveal the predominance of the motive to avoid cannibalization: the probability of entry is negatively related to the number of a chain's own stores in the market. On the other hand, an increase in the number of competitors' stores is positively related to the probability of entry. The study also confirms the significance of spatial effects and the heterogeneity of behavior across chain formats.
