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Competition, Productivity, and Survival of Grocery Stores in the Great Depression

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  • Emek Basker
  • Chris Vickers
  • Nicolas L. Ziebarth

Abstract

We study the grocery industry in Washington, DC, during the Great Depression using data from the 1929 Census of Distribution, a 1929–1930 survey by the Federal Trade Commission, and a 1935 business directory. We first document the differences between chains and independents in the Washington, DC, grocery market circa 1929 to better understand chains' competitive advantages. Second, we study correlates of survival from 1929 to 1935, a period of major contraction and upheaval. We find that more productive stores survived at higher rates, as did stores with greater assortment and lower prices. Presaging the supermarket revolution, combination stores were much more likely to survive to 1935 than other grocery formats.

Suggested Citation

  • Emek Basker & Chris Vickers & Nicolas L. Ziebarth, 2018. "Competition, Productivity, and Survival of Grocery Stores in the Great Depression," Working Papers 18-24, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:18-24
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    References listed on IDEAS

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    Cited by:

    1. Mkansi, Marcia & Nsakanda, Aaron Luntala, 2021. "Leveraging the physical network of stores in e-grocery order fulfilment for sustainable competitive advantage," Research in Transportation Economics, Elsevier, vol. 87(C).
    2. David R. Agrawal & David E. Wildasin, 2019. "Sales Taxation, Spatial Agglomeration, and the Internet," CESifo Working Paper Series 7742, CESifo.

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    More about this item

    Keywords

    Grocery Stores; Survival; Great Depression; Chains;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • N82 - Economic History - - Micro-Business History - - - U.S.; Canada: 1913-

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