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Impact of Supermarkets on Traditional Markets and Retailers in Indonesia's Urban Centers

Author

Listed:
  • Daniel Suryadarma

    (SMERU)

  • Adri Poesoro
  • Sri Budiyati
  • Akhmadi
  • Meuthia Rosfadhila

Abstract

This study measures the impact of supermarkets on traditional markets in urban centers in Indonesia quantitatively using difference-in-difference and econometric methods as well as qualitatively using in-depth interviews. The quantitative methods find no statistically significant impact on earnings and profit but a statistically significant impact of supermarkets on the number of employees in traditional markets. The qualitative findings suggest that the decline in traditional markets is mostly caused by internal problems from which supermarkets benefit. Therefore, ensuring the sustainability of traditional markets would require an overhaul of the traditional market management system, enabling them to compete with and survive alongside supermarkets.

Suggested Citation

  • Daniel Suryadarma & Adri Poesoro & Sri Budiyati & Akhmadi & Meuthia Rosfadhila, 2007. "Impact of Supermarkets on Traditional Markets and Retailers in Indonesia's Urban Centers," Development Economics Working Papers 22548, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:develo:22548
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    File URL: http://www.eaber.org/node/22548
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    Cited by:

    1. Schipmann, Christin & Qaim, Matin, 2011. "Modern food retailers and traditional markets in developing countries: Comparing quality, prices, and competition strategies in Thailand," GlobalFood Discussion Papers 108348, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    2. Mathew Joseph & Nirupama Soundararajan & Manisha Gupta & Sanghamitra Sahu, 2008. "Impact of Organized Retailing on the Unorganized Sector," Macroeconomics Working Papers 22167, East Asian Bureau of Economic Research.
    3. Chang, Han-Hsin & Di Caprio, Alisa & Sahara, Sahara, 2015. "Global Agrifood Value Chains and Local Poverty Reduction: What Happens to Those Who Don’t Plug In?," ADB Economics Working Paper Series 453, Asian Development Bank.
    4. Kulke, Elmar & Suwala, Lech, 2015. "Internationalization of grocery retailers in emerging markets – general considerations and economic impacts," EconStor Preprints 247642, ZBW - Leibniz Information Centre for Economics.
    5. Dyck, John H. & Woolverton, Andrea E. & Rangkuti, Fahwani Yuliati, 2012. "Indonesia's Modern Retail Food Sector: Interaction With Changing Food Consumption and Trade Patterns," Economic Information Bulletin 127495, United States Department of Agriculture, Economic Research Service.
    6. Reardon, Thomas & Gulati, Ashok, 2008. "The rise of supermarkets and their development implications: International experience relevant for India," IFPRI discussion papers 752, International Food Policy Research Institute (IFPRI).
    7. Mathew Joseph & Nirupama Soundararajan & Manisha Gupta & Sanghamitra Sahu, "undated". "Impact of Organized Retailing on the Unorganized Sector," Indian Council for Research on International Economic Relations, New Delhi Working Papers 222, Indian Council for Research on International Economic Relations, New Delhi, India.
    8. Bernadette Dsilva & Stephen D’silva & Roshni Subodhkumar Bhuptani, 2010. "Positioning Strategies In Indian SuperMarkets: An Empirical Study," Far East Journal of Psychology and Business, Far East Research Centre, vol. 1(3), pages 32-58, December.

    More about this item

    Keywords

    impact evaluation; traditional market; supermarket; Urban; Indonesia;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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