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Performance in the Food Retailing Segment of the Agri-Food Chain

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  • Smith, David
  • Trant, Michael

Abstract

This paper sets out to measure the performance of the food-retailing sector of the Canadian economy for the period 1990 to 1998. This study was undertaken to provide a baseline study for the sector due to the major changes that took place after 1998. A second driver was to provide recent information on the sector as the last study of this type was conducted in the 1970s. The paper uses profitability as a measure of performance. The measure was chosen because most firms make business decisions based on their profitability, and profitability provides an indication on the direction of employment, investment, and growth of a sector. We find that that food retailing performed better than both non-food retailers and the general economy over the 1990s. While large retailers performed twice as well as small and medium retailers the latter categories performed better than their non-food counterparts over the period.

Suggested Citation

  • Smith, David & Trant, Michael, 2002. "Performance in the Food Retailing Segment of the Agri-Food Chain," Agriculture and Rural Working Paper Series 28028, Statistics Canada.
  • Handle: RePEc:ags:scarwp:28028
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    File URL: http://purl.umn.edu/28028
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    References listed on IDEAS

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    1. Cotterill, Ronald W., 2000. "Dynamic Explanations of Industry Structure and Performance," Research Reports 25224, University of Connecticut, Food Marketing Policy Center.
    2. Charles E. Hyde & Jeffrey M. Perloff, 1994. "Can Monopsony Power be Estimated?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(5), pages 1151-1155.
    3. Kinsey, Jean D., 1998. "Concentration Of Ownership In Food Retailing: A Review Of The Evidence About Consumer Impact," Working Papers 14329, University of Minnesota, The Food Industry Center.
    4. Rude, James & Fulton, Murray E., 2002. "Concentration And Market Power In Canadian Agribusiness," Structural Change as a Source of Trade Disputes Under NAFTA; Proceedings of the 7th Agricultural and Food Policy Systems Information Workshop - 2001 16873, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    5. Giraud-Heraud, Eric & Soler, Louis-Georges & Tanguy, Herve, 1999. "Avoiding Double Marginalisation in Agro-Food Chains," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 26(2), pages 179-198, June.
    6. Larson, Ronald B., 1997. "Key Developments In The Food Distribution System," Working Papers 14350, University of Minnesota, The Food Industry Center.
    7. Richard J. Sexton, 2000. "Industrialization and Consolidation in the U.S. Food Sector: Implications for Competition and Welfare," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(5), pages 1087-1104.
    8. Paul R. Messinger & Chakravarthi Narasimhan, 1995. "Has Power Shifted in the Grocery Channel?," Marketing Science, INFORMS, vol. 14(2), pages 189-223.
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    Keywords

    Agribusiness;

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