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Local, Organic, Inexpensive and Safe: Can Large Retailers Do It All?

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  • An, Henry
  • Pouliot, Sebastien
  • Volpe, Richard
Abstract
One of the most important changes in the food industry in recent decades has been the increase in retailer concentration at the national level. The trade publication Progressive Grocer releases the Super 50 annually, a ranking of the 50 largest food retailers in the U.S., by receipts. In 1997 the top 5 retailers controlled 24 percent of the national market. By 2004 this figure was 46 percent and by 2010, 61 percent.1 Much of this change has been driven by waves of mergers and acquisitions (Franklin, 2001), but it is impossible to overlook the role that big box, low-cost supercenter stores, particularly Wal-Mart, have played.2 Wal-Mart entered food retail with its first supercenter in 1988 and has since grown to become the largest food retailer in the U.S. by a wide margin.

Suggested Citation

  • An, Henry & Pouliot, Sebastien & Volpe, Richard, 2012. "Local, Organic, Inexpensive and Safe: Can Large Retailers Do It All?," ISU General Staff Papers 201201010800001009, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:201201010800001009
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    References listed on IDEAS

    as
    1. Jayson L. Lusk & Brian C. Briggeman, 2009. "Food Values," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(1), pages 184-196.
    2. Martinez, Stephen W. & Hand, Michael S. & Da Pra, Michelle & Pollack, Susan L. & Ralston, Katherine L. & Smith, Travis A. & Vogel, Stephen J. & Clark, Shellye & Lohr, Luanne & Low, Sarah A. & Newman, , 2010. "Local Food Systems: Concepts, Impacts, and Issues," Economic Research Report 96635, United States Department of Agriculture, Economic Research Service.
      • Martinez, Steve & Hand, Michael & Da Pra, Michelle & Pollack, Susan & Ralston, Katherine & Smith, Travis & Vogel, Stephen & Clarke, Shellye & Lohr, Luanne & Low, Sarah & Newman, Constance, 2010. "Local food systems: concepts, impacts, and issues," MPRA Paper 24313, University Library of Munich, Germany.
    3. Leibtag, Ephraim S. & Barker, Catherine & Dutko, Paula, 2010. "How Much Lower Are Prices at Discount Stores? An Examination of Retail Food Prices," Economic Research Report 96767, United States Department of Agriculture, Economic Research Service.
    4. Greene, Catherine R. & Dimitri, Carolyn & Lin, Biing-Hwan & McBride, William D. & Oberholtzer, Lydia & Smith, Travis A., 2009. "Emerging Issues in the U.S. Organic Industry," Economic Information Bulletin 58617, United States Department of Agriculture, Economic Research Service.
    5. Loureiro, Maria L. & Umberger, Wendy J., 2007. "A choice experiment model for beef: What US consumer responses tell us about relative preferences for food safety, country-of-origin labeling and traceability," Food Policy, Elsevier, vol. 32(4), pages 496-514, August.
    6. John M. Antle, 2000. "No Such Thing as a Free Safe Lunch: The Cost of Food Safety Regulation in the Meat Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 310-322.
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