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Effect Of A Mass Merchandiser On Traditional Food Retailers

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  • Capps, Oral, Jr.
  • Griffin, James M.
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    Abstract

    Non-traditional retailers such as warehouse club stores, discount drug stores, and discount mass merchandisers are new competitors for traditional food retailers. It is expected that non-traditional retailers will account for roughly 14 percent of total grocery sales by the turn of the century. The impact of a particular discount mass merchandiser (Wal-Mart) on the sales of a conventional retail grocery outlet (David's Supermarket, Inc.) located in the rural areas surrounding the Dallas/Ft. Worth metroplex is analyzed. In this case study, Wal-Mart alone is responsible for about a 21 percent reduction in sales.

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    File URL: http://purl.umn.edu/27447
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    Bibliographic Info

    Article provided by Food Distribution Research Society in its journal Journal of Food Distribution Research.

    Volume (Year): 29 (1998)
    Issue (Month): 1 (February)
    Pages:

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    Handle: RePEc:ags:jlofdr:27447

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    Web page: http://fdrs.ag.utk.edu/
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    Related research

    Keywords: Agribusiness;

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    Cited by:
    1. Martens, Bobby J. & Dooley, Frank J. & Florax, Raymond J.G.M., 2010. "A Spatial Analysis of the Effect of Entry by Supercenter and Warehouse Club Retailers on Grocery Sales," Journal of Food Distribution Research, Food Distribution Research Society, vol. 41(2), July.
    2. Martens, Bobby J. & Florax, Raymond J.G.M. & Dooley, Frank J., 2005. "The Effect of Entry by Supercenter and Warehouse Club Retailers on Grocery Sales and Small Supermarkets: A Spatial Analysis," 2005 Annual meeting, July 24-27, Providence, RI 19176, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Richard J. Volpe III & Nathalie Lavoie, 2006. "The Effect of Wal-Mart Supercenters on Grocery Prices in New England," Working Papers 2006-8, University of Massachusetts Amherst, Department of Resource Economics.
    4. Glandon, PJ & Jaremski, Matthew, 2012. "Sales and Firm Entry: The Case of Wal-Mart," Working Papers 2012-03, Department of Economics, Colgate University.
    5. Morganosky, Michelle A. & Cude, Brenda J., 2001. "Why Do Consumers Cross-Shop Between Different Types Of Food Retail Outlets?," Journal of Food Distribution Research, Food Distribution Research Society, vol. 32(03), November.
    6. Cleary, Rebecca & Lopez, Rigoberto, 2007. "Is Wal-Mart Good for Competition? Evidence from Milk Prices," Research Reports 149207, University of Connecticut, Food Marketing Policy Center.
    7. Volpe, Richard J., III & Lavoie, Nathalie, 2005. "The Effect of Wal-Mart Supercenters on Grocery Prices in New England," 2005 Annual meeting, July 24-27, Providence, RI 19188, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Woo, Byung-Joon & Huang, Chung L. & Epperson, James E. & Cude, Brenda J., 2001. "Effect Of A New Wal-Mart Supercenter On Local Retail Food Prices," Journal of Food Distribution Research, Food Distribution Research Society, vol. 32(01), March.
    9. John Fernie & Barbara Hahn & Ulrike Gerhard & Elke Pioch & Stephen J. Arnold, 2006. "The impact of Wal-Mart's entry into the German and UK grocery markets," Agribusiness, John Wiley & Sons, Ltd., vol. 22(2), pages 247-266.
    10. Xiaoou, Liu, 2009. "Rational Addiction Evidence From Carbonated Soft Drinks," 2009 Conference, August 16-22, 2009, Beijing, China 51620, International Association of Agricultural Economists.
    11. Dooley, Frank J. & Mayberry, Matthew & Wilson, Christine A. & Boehlje, Michael, 2002. "Assessing The Effect Of Ecr On Financial And Operating Performance," 2002 Annual meeting, July 28-31, Long Beach, CA 19788, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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