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Why would two artisanal ice cream shops open in the same neighbourhood?

A Calgarian noticed two ice cream shoppes opened up in her neighbourhood, offering similar frozen treats down the street from each other. But are they all screaming for ice cream or just cannibalizing each others flavours?

Senior producer Jennifer Keene gets the scoop on competition in the world of frozen dairy treats

Ice cream may be the perfect cooling agent for a long, hot summer, but why would two artisan creameries open in the same Calgary neighbourhood? (Paula Duhatschek/CBC)

American economist Nancy Pearcey was quoted saying "Competition is a good thing; it forces us to do our best." But is that the case when we're talking about two artisanal ice cream shops in the same neighbourhood?

Madhia Chowdury dropped us a line from Calgary saying "There is a popular ice-cream shop in my neighbourhood. Recently, another ice cream shop opened across the street … my question is, will the number of customers going to the first ice-cream shop stay the same or decrease? Basically, is the original store losing customers to the new one?"

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Senior producer Jennifer Keene got the scoop on this one, with visits to both shops followed by competition talk with Tom Cooper, professor of strategy in the faculty of business administration at Memorial University of Newfoundland and Labrador.

Listen to the segment above  — or download and subscribe to the Cost of Living podcast. 


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