Supermarket Characteristics And Operating Costs In Low-Income Areas
AbstractWhether the poor pay more for food than other income groups is an important question in food price policy research. Stores serving low-income shoppers differ in important ways from stores that receive less of their revenues from Food Stamp redemptions. Stores with more revenues from Food Stamps are generally smaller and older, and offer relatively fewer convenience services for shoppers. They also offer a different mix of products, with a relatively high portion of sales coming from meat and private-label products. Metro stores with high Food Stamp redemption rates lag behind other stores in the adoption of progressive supply chain and human resource practices. Finally, stores with the highest Food Stamp redemption rates have lower sales margins relative to other stores, but have significantly lower payroll costs as a percentage of sales. Overall, operating costs for stores with high Food Stamp redemption rates are not significantly different from those for stores with moderate Food Stamp redemption rates. If the poor do pay more, factors other than operating costs are likely to be the reason.
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Bibliographic InfoPaper provided by United States Department of Agriculture, Economic Research Service in its series Agricultural Economics Reports with number 34003.
Date of creation: 2004
Date of revision:
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More information through EDIRC
Food prices; supermarkets; low-income consumers; Food Stamps; metro; nonmetro; Marketing;
Other versions of this item:
- King, Robert P. & Leibtag, Ephraim S. & Behl, Ajay S., 2004. "Supermarket Characteristics And Operating Costs In Low-Income Areas," 2004 Annual meeting, August 1-4, Denver, CO 20361, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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