Comparison of Chain and Independent Grocery Stores in the San Francisco Area

Abstract

MUCH factual information has been gathered on the economic position of chain and independent stores. On the social side of the problem, in the matter of relative support of the community by the chain and independent stores, little data is available. Paul H. Nystrom in his appraisal of the attack on chain stores under title of Mars Over the Channels of Trade in the American Marketing Journal, October 1935, says: There is probably considerable fact basis for the criticism that chains do not support local community movements as much as they should. This problem deserves the study of both independent retailers and chain store executives. Some progress has already been made upon this point. More can no doubt be done. However, this criticism certainly does not constitute a sufficient basis for attempting to restrict or drive chains out of existence. To obtain some measure of the relative contributions to their communities by both chain and independent grocery stores, a survey was conducted during the past year in the San Francisco Peninsula area. Grocery stores were studied because it is in this field that the chains have had their most rapid growth and because the hot-bed of the struggle between chain and independent retailers centers in the food-retailing business. The study was made by a research agent working as an unbiased observer under direction of a member of the staff of the Stanford University Graduate School of Business. The area covered included the cities of San Bruno, Millbrae, Burlingame, San Mateo, San Carlos, Redwood City, Menlo Park, Palo Alto, Mountain View and Sunnyvale. Employees of the grocery stores in these cities were interviewed and reports obtained from a representative group of 226 persons-102 chain stores employees and 124 independent store employees. No attempt was made to collect material from employees of roadside and neighborhood types of stores.