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New Competition For Supermarkets: A Case Study

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  • Capps, Oral, Jr.

Abstract

Non-traditional retailers such as warehouse club stores, discount drug stores, and discount mass merchandisers are new competitors for traditional food retailers. It is expected that non- traditional retailers will account for roughly 14 percent of total grocery sales by the turn of the century. The impact of a particular discount mass merchandiser (Wal-Mart) on the sales of a conventional retail grocery outlet (David's Supermarket, Inc.) located in the rural areas surrounding the Dallas/Ft. Worth metroplex is analyzed in this case study. In this case study, Wal-Mart alone is responsible for about a 17 percent reduction in sales.

Suggested Citation

  • Capps, Oral, Jr., 1997. "New Competition For Supermarkets: A Case Study," Working Papers 14322, University of Minnesota, The Food Industry Center.
    • Handle: RePEc:ags:umrfwp:14322
    DOI: 10.22004/ag.econ.14322
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    References listed on IDEAS

    as
    1. Kaufman, Phillip R., 1996. "What'S Driving Food Distribution - Forces For Change," Journal of Food Distribution Research, Food Distribution Research Society, vol. 27(1), pages 1-5, February.
    2. Jean Kinsey & Ben Senauer, 1996. "Consumer Trends and Changing Food Retailing Formats," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1187-1191.
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    Cited by:

    1. Davies, Terry & Konisky, David M., 2000. "Environmental Implications of the Foodservice and Food Retail Industries," Discussion Papers 10761, Resources for the Future.
    2. Larson, Ronald B., 1997. "Key Developments In The Food Distribution System," Working Papers 14350, University of Minnesota, The Food Industry Center.

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    Industrial Organization; Marketing;

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