A Qualitative Study on Retailer Experiences With Philadelphia’s Sweetened Beverage Tax

Abstract

ObjectivesWe aimed to explore the knowledge, attitudes, and responses of retailers in Philadelphia the Philadelphia Beverage Tax (implemented January 1, 2017) and to identify their perceptions of tax implementation. MethodsResearchers conducted semi-structured interviews with retailers within Philadelphia before (Phase I; n = 15) and after (Phase II; n = 11) the Philadelphia Beverage Tax was implemented. Purposeful sampling was used to recruit participants with different store locations and customer base characteristics. A priori codes based on the interview guide were used to organize data, and analytic memos were developed and reviewed to identify themes that emerged within the data. ResultsFive important themes emerged: (1) concerns about the tax purpose, amount, and use of revenue; (2) concerns about the tax’s financial impact; (3) business strategies to lessen financial burden of the tax; (4) perceptions of customer response to the tax based on income; and (5) tax implementation experiences. Retailers were initially worried about the tax and how the city would use the tax revenue. Pre- and post- tax implementation, participants had knowledge gaps about the tax including misinformation about the cost increase and the beverages included in the tax. Results also highlighted ways to improve implementation, including greater communication about the tax. ConclusionsRetailers in Philadelphia implemented various strategies to offset negative effects on taxed beverage sales. Cities implementing a beverage tax would benefit from investment in educational outreach and support to business owners prior to tax implementation and ensure transparency in how tax revenue will be spent. Funding SourcesThis study was supported by Bloomberg Philanthropies. SVH was supported by the National Research Service Award from the National Institutes of Health (NIH). JF was supported by the National Institute of Diabetes and Digestive and Kidney Diseases of the National Institutes of Health. This paper is solely the responsibility of the authors and does not necessarily represent the official views of the NIH.