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Effect Of A Mass Merchandiser On Traditional Food Retailers

Author

Listed:
  • Capps, Oral, Jr.
  • Griffin, James M.

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.

Suggested Citation

  • Capps, Oral, Jr. & Griffin, James M., 1998. "Effect Of A Mass Merchandiser On Traditional Food Retailers," Journal of Food Distribution Research, Food Distribution Research Society, vol. 0(Number 1), pages 1-7, February.
  • Handle: RePEc:ags:jlofdr:27447
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    File URL: http://ageconsearch.umn.edu/record/27447/files/29010001.pdf
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    Cited by:

    1. 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).
    2. Richard J. Volpe & Nathalie Lavoie, 2008. "The Effect of Wal-Mart Supercenters on Grocery Prices in New England," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(1), pages 4-26.
    3. P. J. Glandon & Matthew Jaremski, 2014. "Sales and Firm Entry: The Case of Wal-Mart," Southern Economic Journal, Southern Economic Association, vol. 81(1), pages 168-192, July.
    4. Rebecca L. O. Cleary & Rigoberto A. Lopez, 2007. "Is Wal-Mart Good for Competition? Evidence from Milk Prices," Food Marketing Policy Center Research Reports 101, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    5. Volpe, Richard J., III & Lavoie, Nathalie, 2006. "The Effect of Wal-Mart Supercenters on Grocery Prices in New England," Working Paper Series 14515, University of Massachusetts, Amherst, Department of Resource Economics.
    6. 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. 0(Number 1), pages 1-9, March.
    7. repec:ags:jlaare:119159 is not listed on IDEAS
    8. 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).
    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. Rebecca Cleary & Rigoberto Lopez, 2014. "Supermarket responses to Wal-Mart Supercenter expansion: a structural approach," Empirical Economics, Springer, vol. 47(3), pages 905-925, November.
    11. 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. 0(Number 2), pages 1-12, July.
    12. Xiaoou, Liu, 2009. "Rational Addiction Evidence From Carbonated Soft Drinks," 2009 Conference, August 16-22, 2009, Beijing, China 51620, International Association of Agricultural Economists.
    13. 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).
    14. 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. 0(Number 3), pages 1-10, November.

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    Keywords

    Agribusiness;

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