IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v34y2018i4p756-770.html
   My bibliography  Save this article

Food retail market structure and produce purchases in the United States

Author

Listed:
  • Xiaowei Cai
  • Richard Volpe
  • Christiane Schroeter
  • Lisa Mancino

Abstract

Market concentration is associated with food prices, but little is known about the other potential economic consequences of market structure in food retailing. We create a novel dataset by merging IRI household‐level purchase records with Nielsen TDLinx data on store location and USDA Food Environment Atlas data to study the food market structure and produce purchases. Treating zip codes as markets, we find that increased market concentration is associated with decreased produce expenditures. This impact is larger in rural markets than in urban areas. In addition, the presence of most nontraditional store formats such as convenience stores and dollar stores is associated with decreased produce purchases. However, the opposite is true for club stores and natural/gourmet supermarkets. The estimated effects of market entry are small, supporting the literature on supermarket intervention studies. [EconLit citations: L1, D1, D4, R2].

Suggested Citation

  • Xiaowei Cai & Richard Volpe & Christiane Schroeter & Lisa Mancino, 2018. "Food retail market structure and produce purchases in the United States," Agribusiness, John Wiley & Sons, Ltd., vol. 34(4), pages 756-770, October.
    • Handle: RePEc:wly:agribz:v:34:y:2018:i:4:p:756-770
    DOI: 10.1002/agr.21552
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/agr.21552
    Download Restriction: no
    File URL: https://libkey.io/10.1002/agr.21552?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. A. Yeşim Orhun, 2013. "Spatial differentiation in the supermarket industry: The role of common information," Quantitative Marketing and Economics (QME), Springer, vol. 11(1), pages 3-37, March.
    2. Paul B. Ellickson, 2013. "Supermarkets As A Natural Oligopoly," Economic Inquiry, Western Economic Association International, vol. 51(2), pages 1142-1154, April.
    3. Rahkovsky, Ilya & Snyder, Samantha, 2015. "Food Choices and Store Proximity," Economic Research Report 210316, United States Department of Agriculture, Economic Research Service.
    4. Aggarwal, A. & Cook, A.J. & Jiao, J. & Seguin, R.A. & Moudon, A.V. & Hurvitz, P.M. & Drewnowski, A., 2014. "Access to supermarkets and fruit and vegetable consumption," American Journal of Public Health, American Public Health Association, vol. 104(5), pages 917-923.
    5. Neil Wrigley & Daniel Warm & Barrie Margetts, 2003. "Deprivation, Diet, and Food-Retail Access: Findings from the Leeds ‘Food Deserts' Study," Environment and Planning A, , vol. 35(1), pages 151-188, January.
    6. Courtemanche, Charles & Carden, Art, 2011. "Supersizing supercenters? The impact of Walmart Supercenters on body mass index and obesity," Journal of Urban Economics, Elsevier, vol. 69(2), pages 165-181, March.
    7. Richard Volpe & Abigail Okrent & Ephraim Leibtag, 2013. "The Effect of Supercenter-format Stores on the Healthfulness of Consumers' Grocery Purchases," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(3), pages 568-589.
    8. Liran Einav & Ephraim Leibtag & Aviv Nevo, 2010. "Recording discrepancies in Nielsen Homescan data: Are they present and do they matter?," Quantitative Marketing and Economics (QME), Springer, vol. 8(2), pages 207-239, June.
    9. Ping, Robert Jr., 1995. "Some uninvestigated antecedents of retailer exit intention," Journal of Business Research, Elsevier, vol. 34(3), pages 171-180, November.
    10. Ver Ploeg, Michele & Mancino, Lisa & Todd, Jessica E. & Clay, Dawn Marie & Scharadin, Benjamin, 2015. "Where Do Americans Usually Shop for Food and How Do They Travel To Get There? Initial Findings from the National Household Food Acquisition and Purchase Survey," Economic Information Bulletin 262116, United States Department of Agriculture, Economic Research Service.
    11. Ver Ploeg, Michele & Nulph, David & Williams, Ryan Blake, 2011. "Mapping Food Deserts in the U.S," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-4.
    12. Timothy J. Richards & Stephen F. Hamilton, 2006. "Rivalry in Price and Variety among Supermarket Retailers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(3), pages 710-726.
    13. Rummo, P.E. & Meyer, K.A. & Boone-Heinonen, J. & Jacobs, D.R., Jr. & Kiefe, C.I. & Lewis, C.E. & Steffen, L.M. & Gordon-Larsen, P., 2015. "Neighborhood availability of convenience stores and diet quality: Findings from 20 years of follow-up in the Coronary Artery Risk Development in Young Adults study," American Journal of Public Health, American Public Health Association, vol. 105(5), pages 65-73.
    14. Chih-ching Yu & John M. Connor, 2002. "The price-concentration relationship in grocery retailing: Retesting Newmark," Agribusiness, John Wiley & Sons, Ltd., vol. 18(4), pages 413-426.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xiao Dong & H. Allen Klaiber & Zoë Plakias, 2023. "I scream, you scream, we all scream for local ice cream: Consumer preferences for locally processed foods," Agribusiness, John Wiley & Sons, Ltd., vol. 39(1), pages 51-64, January.
    2. Stefan Hirsch & David Lanter & Robert Finger, 2021. "Profitability and profit persistence in EU food retailing: Differences between top competitors and fringe firms," Agribusiness, John Wiley & Sons, Ltd., vol. 37(2), pages 235-263, April.
    3. Hung‐Hao Chang & Brian Lee, 2022. "The association between food outlet accessibility and market competition to household food expenditures: Empirical evidence from the convenience store industry in Taiwan," Agribusiness, John Wiley & Sons, Ltd., vol. 38(1), pages 134-153, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cai, Xiaowei & Volpe, Richard J. & Schroeter, Christiane & Mancino, Lisa, 2017. "Food Retail Market Structure and Produce Purchases in the U.S," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258471, Agricultural and Applied Economics Association.
    2. Richard Volpe & Edward C Jaenicke & Lauren Chenarides, 2018. "Store Formats, Market Structure, and Consumers’ Food Shopping Decisions," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 40(4), pages 672-694, December.
    3. Lauren Chenarides & Edward C. Jaenicke, 2019. "Documenting the Link Between Poor Food Access and Less Healthy Product Assortment Across the U.S," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(3), pages 434-474, September.
    4. Mancino, Lisa & Guthrie, Joanne & Ver Ploeg, Michele & Lin, Biing-Hwan, 2018. "Nutritional Quality of Foods Acquired by Americans: Findings From USDA's National Household Food Acquisition and Purchase Survey," Economic Information Bulletin 276248, United States Department of Agriculture, Economic Research Service.
    5. Freire, Tiago & Rudkin, Simon, 2019. "Healthy food diversity and supermarket interventions: Evidence from the Seacroft Intervention Study," Food Policy, Elsevier, vol. 83(C), pages 125-138.
    6. Zeng, Di & Thomsen, Michael R. & Nayga, Rodolfo M. & Bennett, Judy L., 2019. "Supermarket access and childhood bodyweight: Evidence from store openings and closings," Economics & Human Biology, Elsevier, vol. 33(C), pages 78-88.
    7. Giuntella, Osea & Rieger, Matthias & Rotunno, Lorenzo, 2020. "Weight gains from trade in foods: Evidence from Mexico," Journal of International Economics, Elsevier, vol. 122(C).
    8. Bastian, Nathaniel D. & Swenson, Eric R. & Ma, Linlin & Na, Hyeong Suk & Griffin, Paul M., 2017. "Incentive contract design for food retailers to reduce food deserts in the US," Socio-Economic Planning Sciences, Elsevier, vol. 60(C), pages 87-98.
    9. Charles Courtemanche & Art Carden & Xilin Zhou & Murugi Ndirangu, 2019. "Do Walmart Supercenters Improve Food Security?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(2), pages 177-198, June.
    10. Meilin Ma & Tina L. Saitone & Richard J. Volpe & Richard J. Sexton & Michelle Saksena, 2019. "Market Concentration, Market Shares, and Retail Food Prices: Evidence from the U.S. Women, Infants, and Children Program," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(3), pages 542-562, September.
    11. Gian-Claudia Sciara & Kristin Lovejoy & Susan Handy, 2018. "The Impacts of Big Box Retail on Downtown: A Case Study of Target in Davis (CA)," Journal of the American Planning Association, Taylor & Francis Journals, vol. 84(1), pages 45-60, January.
    12. Rudkin, Simon, 2015. "Supermarket Interventions and Diet in areas of Limited Retail Access: Policy Suggestions from the Seacroft Intervention Study," MPRA Paper 62434, University Library of Munich, Germany.
    13. Rahkovsky, Ilya & Snyder, Samantha, 2015. "Food Choices and Store Proximity," Economic Research Report 210316, United States Department of Agriculture, Economic Research Service.
    14. Meilin Ma & Tina L Saitone & Richard J Volpe & Richard J Sexton & Michelle Saksena & Craig GundersenEditor, 2019. "Market Concentration, Market Shares, and Retail Food Prices: Evidence from the U.S. Women, Infants, and Children Program," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 41(3), pages 542-562.
    15. Dmitrii Tereshchenko, 2022. "Competition among Russian Grocery Stores: Database on St. Petersburg, 2017–2021," HSE Working papers WP BRP 258/EC/2022, National Research University Higher School of Economics.
    16. Matthew Freedman & Annemarie Kuhns, 2018. "Supply-side subsidies to improve food access and dietary outcomes: Evidence from the New Markets Tax Credit," Urban Studies, Urban Studies Journal Limited, vol. 55(14), pages 3234-3251, November.
    17. Cho, Clare & Volpe, Richard J., 2017. "Independent Grocery Stores in the Changing Landscape of the U.S. Food Retail Industry," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258517, Agricultural and Applied Economics Association.
    18. Kristen Cooksey Stowers & Qianxia Jiang & Abiodun T. Atoloye & Sean Lucan & Kim Gans, 2020. "Racial Differences in Perceived Food Swamp and Food Desert Exposure and Disparities in Self-Reported Dietary Habits," IJERPH, MDPI, vol. 17(19), pages 1-14, September.
    19. Chenarides, Lauren & Jaenicke, Edward C., 2016. "Store Choice and Consumer Behavior in Food Deserts: An Empirical Application of the Distance Metric Method," 2017 Allied Social Sciences Association (ASSA) Annual Meeting, January 6-8, 2017, Chicago, Illinois 250118, Agricultural and Applied Economics Association.
    20. Xiao Dong & H. Allen Klaiber & Zoë Plakias, 2023. "I scream, you scream, we all scream for local ice cream: Consumer preferences for locally processed foods," Agribusiness, John Wiley & Sons, Ltd., vol. 39(1), pages 51-64, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:agribz:v:34:y:2018:i:4:p:756-770. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.