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The Effect of Retailer Concentration and Store Format on Consumers’ Food Purchasing Decisions

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  • Volpe, Richard J., III
  • Okrent, Abigail M.
  • Leibtag, Ephraim S.

Abstract

We examine the effect of the market share of supercenter stores on consumers’ food-at-home purchasing habits in the United States. We measure healthfulness several different ways to ensure robustness, but all measurements place a greater value on fresh fruits and vegetables and whole grains than on processed foods high in sugar and sodium. The results show that consumers, on average, purchase less healthful foods at supercenters than they do at supermarkets. Moreover a one-percent increase in the local market share of supercenters results in a decrease in purchase healthfulness for groceries of 0.5 to two percent.

Suggested Citation

  • Volpe, Richard J., III & Okrent, Abigail M. & Leibtag, Ephraim S., 2011. "The Effect of Retailer Concentration and Store Format on Consumers’ Food Purchasing Decisions," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103448, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea11:103448
    DOI: 10.22004/ag.econ.103448
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    References listed on IDEAS

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    1. Cotterill, Ronald W, 1986. "Market Power in the Retail Food Industry: Evidence from Vermont," The Review of Economics and Statistics, MIT Press, vol. 68(3), pages 379-386, August.
    2. Bergès-Sennou Fabian & Bontems Philippe & Réquillart Vincent, 2004. "Economics of Private Labels: A Survey of Literature," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 2(1), pages 1-25, February.
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