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Impacts from a retail grocery acquisition: Do national and store brand prices respond differently?

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  • Secor, William
  • Çakır, Metin

Abstract

We investigate the extent to which a grocery retailer merger has different effects on the prices of national and store brands. Using retail scanner data, we retrospectively analyze a food retail acquisition in a large United States city. We focus on fluid milk and ready-to-eat cereal categories, which represent a relatively homogenous and a relatively differentiated product category, respectively. We use a difference-in-difference estimation framework to obtain the causal effect of the acquisition on prices for the acquiring retailer. Our findings provide evidence that store brands in differentiated product categories could allow a retailer to improve its market power.

Suggested Citation

  • Secor, William & Çakır, Metin, 2016. "Impacts from a retail grocery acquisition: Do national and store brand prices respond differently?," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235945, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:235945
    DOI: 10.22004/ag.econ.235945
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    Agribusiness; Consumer/Household Economics;

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