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We propose location‐then‐variety competition for a multiproduct and multi‐store oligopoly, in which the number of firms, the number of stores and their location, and the number of varieties are endogenously determined. We show that as compared to price‐then‐variety and quantity‐then‐variety competition, location‐then‐variety competition with multistores yields a much richer set of equilibrium outcomes, such as market segmentation, interlacing, sandwich, and enclosure.