Independent Supermarkets Research Articles

Assessing the Multichannel Impact of Brand Store Entry by a Digital-Native Grocery Brand

For digital-native fast-moving consumer goods (FMCG) manufacturers that sell through their own online channel and have made headway into supermarkets, brand stores can represent the next step in a multichannel distribution strategy. In this research, the authors investigate the impact of introducing a brand store on a digital-native FMCG brand's sales in its existing company-owned online channel and in independent supermarkets, as well as on the brand's supermarket distribution. By incorporating brand store sales and operational costs, this research also specifies the entry effects on the brand's top-line total brand sales and bottom-line operating profit. Based on before-and-after-with-control-group analyses of the entry of ten brand stores by a digital-native FMCG brand, the authors show that brand store entry boosts supermarket sales, partially driven by a brand store's positive effect on the number of supermarkets listing the brand. Although they cannibalize company-owned online sales, brand store entries generate an influx of own brand store sales that offset online channel losses. Still, accounting for brand stores’ operational costs reveals that top-line growth is not always enough to preserve the bottom line.

Food and Beverage Environments at Store Checkouts in California: Mostly Unhealthy Products

BackgroundAs the only place in a store where customers must pass through, checkouts may be especially influential over purchases. Research is needed to understand the healthfulness of checkout environments. ObjectivesThe objective of this study was to classify checkout product facings in California food stores. MethodsIn a cross-sectional study, 102 stores, including chains (dollar stores, drugstores, specialty food stores, supermarkets, and mass merchandisers) and independent supermarkets and grocery stores were sampled from 4 northern California cities. Observational assessments of each checkout product facing were conducted in February 2021 using the Store CheckOUt Tool. Facings were classified by category and healthfulness, defined by meeting Berkeley’s Healthy Checkout Ordinance’s healthy checkout standards: unsweetened beverages and specific foods containing ≤5 g added sugar and ≤200 mg sodium per serving. Log binomial regressions compared healthfulness by store and checkout characteristics. ResultsOf 26,758 food and beverage checkout facings, the most common categories were candy (31%), gum (18%), sugar-sweetened beverages (SSBs; 11%), salty snacks (9%), mints (7%), and sweets (6%). Water represented only 3% and fruits and vegetables 1% of these facings. Only 30% of food and beverage facings met Berkeley’s healthy checkout standards, with 70% not meeting the standards. The percentage of food and beverage facings not meeting the standards was even higher (89%) among snack-sized packages (≤2 servings/package). Compared with chain supermarkets, mass merchandisers, and specialty food stores (34%–36%), dollar and independent grocery stores had a lower percentage of food and beverage facings that met the healthy checkout standards (18%–20%; P < 0.05). Compared with lane and register areas (35%), endcaps and snaking sections within checkouts had fewer food and beverage facings that met the standards (21%–23%; P < 0.001). ConclusionsMost foods and beverages at checkout consisted of candy, SSBs, salty snacks, and sweets and failed to meet the healthy checkout standards.

A common framework for using and reporting consumer purchase data (CPD) in foodborne outbreak investigations in Europe

ABSTRACT Consumer purchase data (CPD) can be a powerful tool in the investigation of foodborne outbreaks through analyses of electronic records of food that individuals buy. The objective of this study was to develop a common framework for use of CPD in foodborne outbreak investigations using the expertise of European public health professionals from 11 European countries. We also aimed to describe barriers and limitations preventing CPD utilization. CPD are mainly gathered from supermarket loyalty programmes, smaller consortia, and independent supermarkets. Privacy legislation governing CPD was perceived as the most crucial barrier for CPD usage, but still resolvable. The main practical challenges were obtaining consumer consent for CPD usage, the associated workload, data access, format, and analysis. Harmonising methods and reporting across countries, standardised consent forms and electronic consent methods were identified as solutions. This guideline was developed to support outbreak investigators in overcoming barriers in using CPD, thereby increasing public health professionals’ application and value of this powerful investigation tool. In addition, we hope this framework will lead to more public health institutions, in collaboration with food safety authorities, making use of CPD in outbreak investigations in the future.

CLUES FOR THE SELECTION OF TECHNICAL-QUALITATIVE ATTRIBUTES IN CHARCOAL FOR BARBECUE USE

Currently, much of the world's production charcoal is destined to cooking food in cookers, wood stoves, and grills, barbecue mainly in developing countries. However, in these countries, there are no official regulations to provide high-quality products. The objective of this study was to investigate some of the main technical and qualitative aspects of charcoal used for barbecue, providing clues for future actions to awaken the attention of consumers to assist in choosing during the acquisition of the product. Charcoal was divided into five categories: supermarket chain, independent supermarkets, meat house, gas stations, and one called "others". Ten stores of each category were randomly selected to collect charcoal packages, where all the brands present at the time of collection were sampled. The collections took place in two distinct years to verify the seasonality of the products. The frequency of the brands, location of suppliers, prices, and informative aspects of the packages was analyzed in detail. The prices of the products presented significant changes, with a significant increase in the charcoal marketed by the supermarket chain category. Trademarks collected in the supermarket chain category presented the greatest amount of information and attributes in the packaging of charcoal, it largely does provide better quality charcoal.

Tips on the variability of BBQ charcoal characteristics to assist consumers in product choice

Charcoal is a widely used barbecue product that comes into direct and indirect contact with the foods ingested. Thus, it must have adequate technical characteristics so that its consumption is not harmful to the environment and human beings. This study aimed to investigate the quality of charcoal for use in domestic barbecue, relating different brands and commercial categories. Products from different brands were collected in two consecutive years, in five different commercial categories: supermarket chain; independent supermarkets; meat market; gas station; and other establishments. The physical, chemical and mechanical properties of charcoal were analyzed. Data were analyzed by uni- and multivariate methods. High variability of product characteristics according to brands, commercial categories and years of collection was detected. In addition, some briquettes marketed as charcoal had characteristics unsuitable for use in barbecue, such as high moisture content (> 9%), high ash content (> 10%) and high friability. Charcoal made available for domestic barbecue has high variability of its technical characteristics for combustion and not all of them were suitable for the use in barbecue.

Retailer perspectives on sugar-sweetened beverage taxes in the California Bay Area.

The sugar-sweetened beverage (SSB) industry has claimed that food and beverage retailers are opposed to SSB taxes. In 2018 and 2019, we formally evaluated retailers’ perceptions of SSB taxes using semi-structured interviews (including open- and closed-ended questions) with 103 randomly selected retailers (50 corner and liquor stores; 28 chain convenience, drug, and mass-merchandise stores; 18 chain supermarkets and discount supermarkets; and 7 independent supermarkets) across 3 cities with SSB taxes (Berkeley, Oakland, and San Francisco); interviews occurred in 2018 and 2019 (approximately 3 years, 1 year and 6 months post tax-implementation, respectively). A majority of both small and large retailers reported the tax had only a minimal effect on their business (70%). About half of retailers believed that other cities should adopt SSB taxes (53%), and were supportive of a statewide SSB tax (53%), noting it would level the playing field and better support health in their communities. Retailers’ responses did not differ based on neighborhood income, and only 2 responses differed significantly between large and small retailers. Only 2 of 103 retailers reported raising the price of a non-beverage product in response to the tax, specifically raising the price of snack foods of low nutritional quality and alcoholic beverages. A majority of retailers in 3 California cities with SSB taxes have no concerns regarding the tax, endorse the health goals of SSB taxes and support statewide expansion of SSB tax policies.

Abstract MP08: Targeted Healthy Food Incentives Influence Grocery Purchase Quality and Purchase of Targeted Foods: Results From the Randomized Controlled Crossover Smart Cart Study

Introduction: Incentives can increase healthy food purchases, but less is known about whether they improve dietary quality. The Smart Cart Study evaluated whether healthful food incentives based on customer preferences and purchase history increased grocery purchase quality and the proportion of spending on targeted foods. Hypothesis: Targeted incentives will increase grocery purchase quality as measured by the Grocery Purchase Quality Index- 2016 (GPQI) and percent spending on targeted healthful foods. Methods: Adults (n=224) who shopped at an independent supermarket for ≥50% of their groceries, participated in the store’s loyalty program, and completed study questionnaires were enrolled in summer 2018. All participants received a 5% loyalty card discount. The intervention group received targeted weekly coupons (~$10 value) with brief education to improve purchase quality for 13-weeks. A computerized study algorithm allocated targeted healthy food coupons to participants’ loyalty cards by using purchase history, dietary preferences, and diet quality. The control group received weekly brief education and occasional generic coupons. After a brief washout, the groups crossed over. GPQI-16 scores (range 0-75) were calculated from cumulative food purchasing data by comparing actual to recommended spending within 11 food groups, with higher scores reflecting higher purchase quality; % spending on targeted vs. all foods was also compared. Paired t-tests examined differences between groups. Results: Participants with extreme spending (i.e. top/bottom 1%) were excluded, leaving an analytic sample of 207 mostly white adults (95%), with mean age of 56 and 50% with household incomes ≥100K. The Table shows changes in GPQI-16 scores and % spending in the first 13-week intervention period, followed by the cross-over intervention period. Conclusions: Results from this pilot trial suggest that targeted healthy supermarket incentives are feasible and are promising tools to help improve diet quality and health.

Evaluating the effect of individually-targeted food incentives on grocery purchases: The smart cart study protocol for a randomized controlled cross-over trial

Background/AimsHealth stakeholders are interested in the promise of healthy food incentives to improve dietary quality. The Smart Cart Study tested whether targeting healthful food incentives based on customer preferences and purchase history was effective for improving grocery purchase quality. DesignRandomized controlled crossover design of 224 adults who shopped at an independent supermarket for ≥50% of their groceries, participated in the store's loyalty program, and completed validated diet and sociodemographic/behavioral questionnaires. Participants were randomized using 1:1 blocked randomization; all participants received a 5% discount on their purchases with their loyalty card. For the first 13-weeks, the intervention group received individually-targeted weekly coupons (valued up to $10) with brief nutrition education to improve grocery purchase quality. The study team developed healthy food coupons, and the study algorithm allocated targeted coupons to participants' loyalty cards using purchase history, dietary preferences/allergies, and baseline diet quality. Control participants received weekly untargeted nutrition education and occasional generic coupons. Following a 2–4 week washout period, the two groups crossed over. The primary study outcomes were purchases of targeted products and grocery purchase quality measured using the validated Grocery Purchase Quality Index-2016; the study was powered to detect a minimum 3% difference in purchase quality. ConclusionsThe Smart Cart Study tested a novel application of automated individually-targeted marketing using customer purchase history, dietary quality, and preferences to identify and deliver targeted incentives to improve grocery purchase quality. Future research could scale this program through collaboration between multiple stakeholders, including supermarkets, workplace wellness initiatives and insurance companies.

Market structure determinants of performance for independent supermarkets

We create a novel dataset by merging Nielsen TDLinx data with the results of a survey of supermarket managers. We study the determinants of store performance for independent supermarkets, as measured by sales per square foot, paying particular attention to local market structure. The results show a negative and significant impact of market concentration on independent supermarket performance, which is robust to model specification. We also identify a number of format‐specific impacts and performance drivers such as store characteristics, all of which motivate future research.

Is the type and location of grocery stores a predictor of healthy and unhealthy food availability? A cross-sectional study.

To investigate whether geographical location or type of store is associated with differences in healthy and unhealthy food availability in grocery stores. A cross-sectional study using the Victorian Healthy Food Basket to measure food availability (44 'healthy' and 10 'unhealthy' items) in a convenience sample of 112 stores in urban and regional Victoria, Australia. Logistic regression analyses assessed whether location (regional, urban), distance from capital city central business district (km) and type of store (chain supermarket, independent supermarket and general store) predicted the number of missing healthy and unhealthy food items. There were 54 chain supermarkets, 43 independent supermarkets and 15 general stores, with 56% of stores located in urban areas and 44% located regionally. The strongest significant predictor of missing items was being a general store, which had greater odds (odds ratio (OR) = 136, 95% confidence interval (CI) = 13-1399) of having missing 'healthy' items and missing 'unhealthy' items (OR = 63, 95% CI = 7-575), compared with chain supermarkets. Independent supermarkets had increased odds of having missing 'healthy' items (OR = 7, 95% CI = 2-22) compared with chain supermarkets. Regional store location was a significant predictor of missing 'healthy' and 'unhealthy' items, compared with urban location (OR = 6, 95% CI = 2-25) and (OR = 7, 95% CI = 2-29), respectively. Store type was a stronger predictor of stores having missing 'healthy' and 'unhealthy' food items than the store distance from a large urban centre. General stores and independent supermarkets may be important settings for interventions to improve availability of healthy food.

Food availability and accessibility in the local food distribution system of a low-income, urban community in Worcester, in the Western Cape province

Objectives: The objective was to understand the local food distribution system in Avian Park, with a focus on food availability and accessibility.Study design: This was a quantitative food store survey that employed semi-structured interviews and focus group discussions.Setting: The study was conducted in Avian Park, situated in the Breede Valley, in the Western Cape province.Subjects: Thirteen spaza shops, three chain supermarkets, three street vendors, two butchers, two wholesalers, a community café and a small, independent supermarket randomly selected from the community were included. Food retail outlet managers and community residents were also included.Outcome measures: The outcome measures were food prices, availability, and access and quality.Results: The café stocked 56% of the surveyed food items, spaza shops 66% and the supermarket 69%. Spaza shops stocked sweetened products, basic staples and processed food. A variety of vegetables was available at the café and supermarket, with less variety in the spaza shops. Processed and staple food was most expensive in the spaza shops, while fruit and vegetables were generally cheaper. Food prices were below the national average in all of the food categories, except for bread, cereals, grains, sweets and sugar. Interviews with shop owners indicated that fruit and vegetables were not kept because of spoilage, space limitations, storage issues and lack of transport. Focus group discussions with residents indicated a need for fruit, vegetables and meat outlets within walking distance.Conclusion: Community food prices were not the main factor inhibiting food accessibility, but rather variety and quality.

Food‐Retail Development and the Myth of Everyday Low Prices: The Case of Brazil

This article analyses the changes in Brazilian food retailing by investigating the co‐existence of, and the pricing variation across, large supermarket chains and small independent supermarkets. It uses cointegration tests to show that, despite the widespread belief that small supermarkets are inefficient and charge higher prices, they in fact charge lower prices. Accordingly, in contrast to the prevailing literature on food‐retail development, competition in food retail is complex and cannot be described as a simple Darwinian process of market concentration. The article explores the survival of small retail and its consequences for the current discussion on modern food retail in developing countries.

As transações entre varejistas e fornecedores de frutas, legumes e verduras na cidade de São Paulo

O objetivo deste artigo é caracterizar as estratégias usadas por três diferentes formatos de varejo (grande rede, associações de pequenos e médios supermercados e supermercados independentes) em suas compras de frutas, legumes e verduras (FLV) com foco na questão dos padrões de qualidade exigidos. A abordagem teórica utilizada é de economia dos custos de transação. Para a pesquisa empírica é utilizado o método de casos múltiplos viabilizado por meio de entrevistas presenciais com representantes dos distintos formatos de varejo na cidade de São Paulo. Os resultados indicam que há diferenças nas estratégias dos variados formatos de varejo com seus fornecedores de FLV. No caso de pequenos e médios supermercados é bastante representativo o fornecimento proveniente da Ceagesp (Companhia de Entrepostos e Armazéns Gerais do Estado de São Paulo), mesmo para o grande varejista entrevistado; cerca de 25% do suprimento de FLV é da Ceagesp, o que caracteriza uma relação de mercado. O restante é fornecido pelos chamados distribuidores de origem. Por fim, os resultados do artigo têm implicações gerenciais para os produtores de FLV, indicando que há alternativas de inserção nas cadeias produtivas de FLV tendo em vista os diferentes formatos de varejo e suas estratégias distintas de relacionamento com fornecedores.

Dietary portfolio approach to reducing the risk of cardiovascular disease: The Polymeal revisited

AbstractAims: The Polymeal was first proposed as a ‘tastier and safer’ alternative to a polypharmacy approach to cardiovascular disease risk reduction. The present study aimed to examine the affordability of the Polymeal, and to propose modifications based on economic considerations, and the latest scientific evidence, to achieve consistency with current public health recommendations.Methods: Prices for each food component specified in the Polymeal were obtained from a major and independent supermarket chain in a representative middle socioeconomic demographic region of metropolitan Melbourne, Australia. Items included fish (114 g, four times/week), fruits and vegetables (400 g/day), dark chocolate (100 g/day), garlic (2.7 g/day), almonds (68 g/day) and red wine (150 mL/day). Prices were calculated using an average of the major brands, or the most commonly eaten fruits, vegetables or fish. Modifications of the Polymeal were proposed based on published research and public health recommendations since the Polymeal was first proposed.Results: Average price of the Polymeal was AU$11.89 per day falling to AU$8.46 if the cheapest food items were chosen. Modifications to the Polymeal included: consuming fish oil capsules instead of fish, reduction in the quantity of dark chocolate and removal of red wine. These modifications halved the cost of the Polymeal, while choosing the cheapest food items further lowered the cost to AU$3.49 per day. Modification of the Polymeal gave substantial reductions in both energy and saturated fat (51% and 84%, respectively).Conclusion: The modified Polymeal is a more affordable variation of the Polymeal, which takes into account current scientific evidence and public health recommendations.

The Neighborhood Food Resource Environment and the Health of Residents with Chronic Conditions

Residence in disadvantaged neighborhoods is associated with poorer access to healthy foods. To understand associations between the neighborhood food resource environment and residents' health status and body mass index (BMI) for adults with and without chronic conditions. Cross-sectional multilevel analysis. 2,536 adults from the 2000-2001 Los Angeles Family and Neighborhood Survey. The food resource environment was defined as the number of chain supermarkets, independent supermarkets, small markets, or convenience stores per roadway miles in the census tract. The main dependent variables were self-rated health, dichotomized as excellent or fair/poor, and body mass index (BMI). Multilevel regression models examined the association between the food resource environment and both BMI and the odds of reporting excellent health after adjustment for neighborhood SES and individual characteristics. More chain supermarkets per roadway mile in a census tract was associated with higher adjusted rates of reporting excellent health (33%, 38%, and 43% for those in the lowest, middle, and highest tertiles of chain supermarkets) and lower adjusted mean BMI (27, 26, and 25 kg/m(2)) for residents without a chronic condition, but not those with a chronic condition. In contrast, having more convenience stores per roadway mile was associated with lower health ratings only among adults with a chronic condition (39%, 32%, and 27% for the lowest to highest tertile of convenience stores). Health status and BMI are associated with the local food environment, but the associations differ by type of market and presence of a chronic condition.

What fills the gaps in food deserts? Mapping independent groceries, food stamp card utilization and chain fast-food restaurants in the Chicago area

Recent research has identified the existence of “food deserts” in many urban (and rural) areas, characterized by a lack of access to chain supermarkets. With few exceptions, these studies have focused on chains rather than independent supermarkets. The Northeastern Illinois Community Food Security Assessment is a GIS and survey based study of food access in the six-county Chicago metropolitan area. Preliminary results indicate that poor and minority areas are less likely to have full-line chain supermarkets, but it does not necessarily follow that all of these communities have poor food access since many Hispanic and other ethnic communities have many stores that cater to their cuisines. More interestingly, food stamp card allocation and redemption data indicate that most poor African–American areas have much higher levels of allocation than redemption. Surrounding areas have higher redemption than allocation levels, indicating that residents are spending their food stamp money at stores in these surrounding neighborhoods. This food stamp usage data set is compared to the mix of stores in the particular neighborhoods in question. Further analysis looks at the pattern of chain fast-food restaurants in the Chicago area. While national chains are not absent from most ‘food deserts,’ as with supermarkets, many of these areas are served more by local chains and independents.

Supermarkets and their impacts on the agrifood system of Brazil: The competition among retailers

AbstractThis article proposes an explanation for evidence that challenges the received knowledge in relation to the advance of large supermarket chains in the Brazilian food market. It was thought that the large, more efficient chains would eliminate the traditional stores and the smaller supermarkets as well, based on price competition. However, the evolution of the food retail structure in Brazil shows growth in the number of traditional firms and independent supermarkets in the last nine years, with little evidence of loss of importance in food sales, especially as to the independent supermarkets whose share in food sales has grown. [EconLit citation: L100, L130, Q130.] © 2005 Wiley Periodicals, Inc. Agribusiness 21: 133–147, 2005.

Supermarkets in China: the case of Shanghai

Supermarkets have established a visible presence in Shanghai with some 1,000 stores and an estimated 5 per cent of market share. Local chains dominate the sector but well-known international retailers are very active. Studies indicate that a large proportion of consumers regularly shop in supermarkets but they use them 'selectively', mostly for packaged and processed foods, and continue to purchase fresh food in traditional outlets. The author uses a variety of data types and a number of research methods to analyse supermarkets' penetration into Shanghai. A background discussion of the food retail system in Shanghai highlights the traditional formats, the local and foreign supermarket chains, and the independent supermarkets. The data from a consumer shopping behaviour study is then used to assess supermarkets' penetration. Supermarkets' fast penetration into Shanghai is surprising given the findings of earlier studies, which identified the existence of serious limitations on the format's penetration into less developed countries (LDCs). Consequently, the focus in the second part of the paper is on explaining the reasons for the success of supermarkets. The impact of the factors identified in the earlier studies as constraining supermarkets' advance were evaluated and it was found that in Shanghai three of these factors (consumers, traditional retailers and government) did not cause serious problems for supermarkets. Only the supply-side conditions negatively affected their operations. The Shanghai example highlights the need to update our thinking regarding the LDCs' food retail modernization process in a number of directions. First local supermarket chains, not foreign ones, drive the process. Second, supply-side factors, not the demand-side ones that were emphasized in earlier studies, pose the major difficulties. Third, this analysis affirms the importance of the 'selective' adoption phenomenon where LDC consumers who regularly shop in supermarkets continue to purchase fresh food in traditional outlets. The implications of this analysis for food retail modernization theory and for practice are discussed and the prospects for further development of the supermarket sector in Shanghai are assessed.

Evolving Relationships between Food Manufacturers and Retailers: Implications for Food System Organization and Performance

This paper focuses primarily on bargaining relationships between manufacturers of advertised-brand grocery products and supermarket operators (supermarket chains and wholesalers who purchase most of the groceries sold by independent supermarket operators). This is part of the ongoing process of incorporating firm and industry behavior into foodmarketing system analyses. Developing a dynamic theory which predicts evolving structure and performance of industries and subsectors would not only benefit industry analysts but also allow academic and government researchers to plan and communicate better their research results. Data needed for statistical analyses of the effects of dynamic vertical linkages on industry structure are not available. Therefore, this analysis draws primarily from an extensive study of food distributor procurement practices which merged trade literature data and scores of confidential interviews with grocery buyers and sellers (Hamm 1981). The validity of the conclusions drawn by this or any analytical descriptive research rests upon the accuracy of the empirical observations and the logic used in the analysis. The value of such research is in its potential contribution to the formulation of testable new theoretical constructs as well as in its empirical findings. A Conceptual Framework of Buyer-Seller Bargaining