Campus Units
Supply Chain and Information Systems
Document Type
Article
Publication Version
Published Version
Publication Date
2008
Journal or Book Title
Journal of Food Distribution Research
Volume
39
Issue
3
First Page
13
Last Page
28
DOI
10.22004/ag.econ.55981
Abstract
The U.S. retail grocery industry shifted from an industry dominated by small grocers serving local markets to one characterized by large retailers present in international markets. Average retail grocery concentration as measured by CR4 increased from 19.9 in 1997 to 31.0 in 2002 (U.S. Department of Commerce, Bureau of the Census, 2000; 2005). Wal-Mart’s tremendous growth is the catalyst to this change, but little is known about Wal-Mart’s effect on market concentration. This analysis evaluates the effects of de novo entry by Wal-Mart Supercenters on retail grocery concentration. The effect of Wal-Mart Supercenters on changes in retail grocery concentration is estimated using econometric modeling. The results show that existing Wal-Mart Supercenter operations and entry by Wal-Mart Supercenters significantly increase the rate of change in retail grocery concentration.
Copyright Owner
The Food Distribution Research Society, Inc.
Copyright Date
2008
Language
en
File Format
application/pdf
Recommended Citation
Martens, Bobby J., "The Effect of Entry by Wal-Mart Supercenters on Retail Grocery Concentration" (2008). Supply Chain and Information Systems Publications. 75.
https://lib.dr.iastate.edu/scm_pubs/75
Included in
Entrepreneurial and Small Business Operations Commons, Operations and Supply Chain Management Commons, Organizational Behavior and Theory Commons, Sales and Merchandising Commons, Technology and Innovation Commons
Comments
This article is published as Martens, B.J., The Effect of Entry by Wal-Mart Supercenters on Retail Grocery Concentration. Journal of Food Distribution Research; 2008, 39(3); 13-28. Doi: 10.22004/ag.econ.55981. Posted with permission.