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The Effect of Wal-Mart Supercenters on Grocery Prices in New England

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  • Volpe, Richard J., III
  • Lavoie, Nathalie

Abstract

This study analyzes the effect of the presence of Wal-Mart Supercenters on the prices at conventional supermarkets in Massachusetts, Connecticut, and Rhode Island. Using price indexes constructed from primary price data on a basket of 54 goods and holding several demographics and market conditions constant, we determine that Supercenters result in a 7.79% average price reduction in national brand goods and a 6.38% average price reduction in private label goods. Wal-Mart Supercenters also price their groceries on average 15.65% lower than supermarkets competing with Supercenters and 22.28% lower than supermarkets geographically distant from Supercenters.

Suggested Citation

  • 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).
  • Handle: RePEc:ags:aaea05:19188
    DOI: 10.22004/ag.econ.19188
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    Cited by:

    1. Richard J. Volpe III & 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.

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