Large Food Retailers Research Articles

Supply network stress-testing of food security on the establishment-level

Recent events exemplified the fragility of national and international supply networks (SNs), leading to significant supply shortages of essential goods, such as food and medicines. Severe disruptions propagating along complex SNs can expose entire regions or countries to these risks. A lack of data and quantitative methodology has hitherto prevented an empirical quantification of the vulnerabilities of populations created by SN disruptions. Here, we propose supply network stress-testing (SNST) as a new data-driven methodology to quantify product-level supply losses of administrative districts that result from cascading supply disruptions between establishments. We demonstrate SNST on a large fraction of the Austrian food SN – composed of the pork production network from farms to meat processors and the distribution network of large food retailers – containing 23,001 establishments, 44,730 supply links, and 116 administrative districts. We rank all establishments with respect to their systemic criticality for the population using a novel systemic risk index, ESR I i crit . We identify 28 facilities that – in case of failure – are expected to cause severe supply shortages to up to 20% of the population. SNST enables governments and industry to stress-test national supply networks of critical goods, to identify their weak spots and make them more resilient to future crises.

Anthropomorphic Sad Expressions Reduce Waste of “Single” Imperfect Food

ABSTRACTPoint‐of‐sale anthropomorphism—attributing human characteristics to nonhuman entities—has been shown to increase evaluations of food that deviates in shape or form from consumer expectations (“imperfect food”). However, while previous research has included the use of primary emotions to manipulate anthropomorphism, it is unclear whether depicting imperfect produce with happy or sad emotional expressions is more effective in boosting choice of such produce. This research addresses this gap and additionally examines a novel type of imperfection: when produce is torn off the bunch it normally comes in. A field study conducted at a large food retailer in Germany revealed that sales of “single” bananas significantly increased when they were anthropomorphized with sad emotions compared to when they were anthropomorphized with happy emotions or not anthropomorphized. Across three preregistered online experiments, this research corroborates the effectiveness of sad emotional expressions in boosting purchase intentions, establishes compassion as the underlying process, generalizes this effect to other produce (i.e., tomatoes), and shows that a price discount eliminates this effect. The findings of this research are particularly relevant for food retailers aiming to increase purchases, and thus reduce waste, of fresh produce that has become a loose “single.”

Potential Impacts of Diversification of Food Retail Working Hours on Consumer Behaviour and the Benefits for Local Producers in Latvia

The capability of large food retail chains to respond quickly to changes in consumer behaviour and their dominant market position affects all food market players and often conflicts with the interests of national food producers, which can reduce the presence of locally sourced products in the food product mix in the country. Accordingly, the present research aims to identify the impacts of the diversification of opening hours of food supermarkets on consumer shopping habits and the implications for creating an advantage for small and medium agri-food producers in selling their products. The research applied a quantitative approach to identify the main trends in society (n = 2738), with a survey including 31 variables to quantify consumer behaviour, values, and opinions and seven socio-demographic variables. If a decision was made in Latvia to close grocery shops on Sundays or reduce their opening hours on weekends, 85% of consumers indicated that they would be unlikely to change their usual shopping location and would plan to shop at a supermarket on other days. The choice between farmers’ markets and local food shops on Sundays would be made by 45% of consumers, with more than half (53%) of them shopping at local food shops at least a few times a month. The research uniquely investigated the impact of reducing supermarket opening hours on the competitive advantage of small and medium-sized agri-food producers. The findings revealed that reducing supermarket opening hours does not confer a competitive advantage to the producers or significantly shift consumer preferences towards their products.

Voluntary versus mandatory food labels, Australia.

To compare uptake of the voluntary Health Star Rating front-of-pack nutrition labelling system with uptake of a mostly mandatory country-of-origin label in Australia over a similar period. We used data on numbers and proportions of products carrying health stars and country-of-origin labelling recorded annually between 2015 and 2023 through surveys of four large Australian food retailers. We determined the proportion of products with health stars and country-of-origin labels for each year by dividing the number of products carrying each label by the total number eligible to carry that label. The uptake of the voluntary Health Star Rating increased steadily between 2014 and 2018, reaching a maximum of 42% (8587/20 286) of products in 2021 before decreasing to 39% (8572/22 147) in 2023. Mandatory country-of-origin labelling uptake rose rapidly and was found on 93% (17 567/18 923) of products in 2023. In categories where country-of-origin labelling was voluntary, uptake by 2023 was 48% (3313/6925). In our 2023 sample of 22 147 products, 11 055 (50%) carried country-of-origin labelling only, 7466 (35%) carried both health star and country-of-origin labelling, 1106 (5%) carried health star labels only and 2520 (11%) carried neither label. The experience with country-of-origin labelling shows that widespread and rapid food labelling change can be achieved when required by law. The Australian government should mandate the Health Star Rating without delay. Australia's experience supports other jurisdictions in implementing mandatory front-of-pack nutrition labelling as well as updates to global guidance to recognize mandatory labelling as best-practice in delivering benefits to consumers.

'Uma das coisas que mais agrega valor é o orgânico’ – Novas trajetórias e singularidades no mercado dos produtos orgânicos

As they were regulated and institutionalized, organic products took on new trajectories and meanings with the emergence of a more varied market focusing on specific audiences and new qualification references. In this paper we investigate some of the new meanings and different qualifications organic products have assumed by analyzing their new trajectories and singularities within an increasingly flexible and dynamic market containing wider and more heterogeneous range of actors and distinct products that circulate around the organic concept but are neither rigidly defined by or dependent upon this meaning. Using data from primary and secondary sources on how these products were singularized, we attempt to demonstrate that throughout the process of regulating and institutionalizing organic products, “organic” has not only become commodified but also assumed other overlapping meanings, with this characteristic potentially becoming less central or products even ceasing altogether to be organic. In our analysis we highlight trade fairs that focus on these products, their entry into large food companies and retailers, ultra-processed organic products, and how they approximate other qualification references (such as the concepts of vegan, diet, and light).

Beef, Beans, or Byproducts?

Flexitarianism was one of the top food trends of the summer in 2020. Characterizing reductions in meat eating as representative of the reflections on personal and societal health that were taking place at the time, Canada’s largest food retailer, Loblaw situated the company’s expanded plant-based offerings as a response to a “new us” that was emerging from the COVID-19 pandemic. This article explores the protein pathways that Loblaw opens and closes by promoting “flexitarian choices for our changing lifestyles”. Focussing on reduced beef consumption as a target of flexitarian intervention, I situate flexitarianism in relation to calls for a “protein transition”, which would address the risks the dominant beef industry poses to animal, human, and planetary wellbeing. Drawing from a larger case study on beef shopping at Loblaw supermarkets, I consider the extent to which the version of flexitarianism on display at Loblaw supermarkets might support the status quo in the dominant beef industry. As a flexible framework, flexitarianism holds potential to respond contextually to the needs of varying food networks in Canada. As a defined consumer demographic, however, flexitarianism is poised to reroute this flexibility away from diverse food systems toward adaptable investments, which would insulate financial portfolios from the risks of intensive animal agriculture without requiring meaningful changes within those industries.

Structural racism and geographic access to food retailers in the United States: A scoping review.

This scoping review summarized findings and key measures from U.S.-based studies that 1) examined associations between geographic indicators of structural racism (e.g., redlining, racial segregation) and access to food retailers (e.g., supermarkets, convenience stores) or 2) documented disparities in access by neighborhood racial/ethnic composition. In 2022, relevant scientific literature was reviewed using Covidence software. Independent reviewers examined 13,069 citations; 163 citations advanced to the full-text review stage and 70 were selected for inclusion. Twenty-one studies (30%) linked one or more indicator of structural racism to food retailer access while 49 (70%) solely examined differences in access by neighborhood racial/ethnic composition. All studies featuring indicators of structural racism reported significant findings; however, indicators varied across studies making it difficult to make direct comparisons. Key indicators of structural racism in the food access literature included redlining (n=3), gentrification (n=3), and racial segregation (n=4). Many U.S.-based studies have evaluated food retailer access by neighborhood racial/ethnic composition. Moving forward, studies should model indicators of structural racism and determine their influence on geographic access to large and small food retailers.

Creating Value for Sustainability by Transforming the Food Well-being Paradigm—Alternative New Food Product Development

Due to supply chain disruptions and sourcing uncertainties, multinational and large food manufacturers, retailers and suppliers are investing in New Food Product Development (NFPD) to add value and differentiate themselves from homogeneous food markets. However, for start-up food companies, especially in the NFPD field and within marketing research, this is difficult to do. This article’s aim is to analyse a microalgae milk pioneer and proteinalternative food technology company, its emerging NFPD, and its focused values, highlighting the differences with prior evolutions. A design science methodology and case study are applied. The findings show that technologydriven NFPD, with an integrative process, is promising. Moreover, a diversified and plant-based NFPD is encouraged as it creates sustainability values for consumer well-being by enhancing food technology and business performance. This study contributes to the NFPD literature and marketing research by improving current understandings of how to implement sustainability through technological breakthroughs and innovation in the NFPD process. In addition, it makes a methodological contribution by means of demonstrating how design science can help researchers think outside the box and create practical research to provide valuable solutions. Finally, this is the first study to use design science guidelines to create the NFPD value chain framework.

Exploring success factors in food waste prevention initiatives of retailers: the critical role of digital technologies

PurposeFood waste is a severe problem affecting the supply chain due to its significant adverse social and environmental effects. Even if the topic is hotly debated in the literature, there is a lack of research about the success factors influencing food waste prevention initiatives retailers undertake.Design/methodology/approachThe research analyzes how several variables (i.e. product-related variables and technology-enabling variables) might impact the success of the sales of products close to the expiration date that is sold at a discounted price. Data from 390.000 products sold at a discounted price in 2020 and 2021 by a large Italian food retailer were examined with a regression analysis.FindingsThe results highlight that both product-related and technology-enabling variables influence the success of food prevention initiatives aimed at selling products close to the expiration date at a discounted price. In particular, the authors stress the importance of digital technologies in supporting food waste prevention initiatives.Practical implicationsThe study offers several practical implications for managers in structuring a waste prevention initiative. The introduction of digital technologies, the monitoring of specific variables or the ability to find synergies with other food waste prevention initiatives are discussed to support retailers in reducing food losses.Originality/valueThe paper is focused on the retailer perspective, which is barely investigated due to the difficulty in finding data.

Enhancing Short-Term Berry Yield Prediction for Small Growers Using a Novel Hybrid Machine Learning Model

This study presents a novel hybrid model that combines two different algorithms to increase the accuracy of short-term berry yield prediction using only previous yield data. The model integrates both autoregressive integrated moving average (ARIMA) with Kalman filter refinement and neural network techniques, specifically support vector regression (SVR), and nonlinear autoregressive (NAR) neural networks, to improve prediction accuracy by correcting the errors generated by the system. In order to enhance the prediction performance of the ARIMA model, an innovative method is introduced that reduces randomness and incorporates only observed variables and system errors into the state-space system. The results indicate that the proposed hybrid models exhibit greater accuracy in predicting weekly production, with a goodness-of-fit value above 0.95 and lower root mean square error (RMSE) and mean absolute error (MAE) values compared with non-hybrid models. The study highlights several implications, including the potential for small growers to use digital strategies that offer crop forecasts to increase sales and promote loyalty in relationships with large food retail chains. Additionally, accurate yield forecasting can help berry growers plan their production schedules and optimize resource use, leading to increased efficiency and profitability. The proposed model may serve as a valuable information source for European food retailers, enabling growers to form strategic alliances with their customers.

Agri-food Cooperatives’ Online Marketing: Evaluation of the Strategies Utilized by Spanish and UK Food Retailers Pre- and Post- COVID-19 Pandemic

The use of big data by large food retailers is increasing their bargaining power against the agri-food cooperative sector. The aim of this study was to determine the social media behaviour of food retailers in Spain and the UK, and to identify significant changes pre- and post-COVID-19 pandemic. The study analysed Twitter data collected from 16 food retailers; a total of 102,200 valid tweets were extracted from their official Twitter accounts. A term frequency analysis and a social network analysis of food retailers’ Twitter behaviour were carried out. The results obtained show differences for both UK and Spanish retailers before and during the COVID-19 pandemic. For agri-food cooperatives with little bargaining power in the supply chain of fresh produce, data analysis is a key factor in improving their competitive positioning. These findings should be of value to data scientists as well as managers responsible for forming strategies in agri-food firms that have large food retailers as clients. Finally, the study also confirms that, for agri-food cooperatives, analysing tweet content is a cheap and useful tool for understanding customer behaviour.

Who buys non-alcoholic beer in Finland? Sociodemographic characteristics and associations with regular beer purchases.

The consumption of non-alcoholic beer and other non-alcoholic and low-alcohol beverages has grown significantly in recent years. Due to a lack of suitable datasets, there have been few studies conducted on the forerunners of the non-alcoholic beer consumption trend. This study examined the associations of sociodemographic characteristics with non-alcoholic beer purchase, and of non-alcoholic beer purchases with regular beer purchases. The data consisted of longitudinal individual purchases of non-alcoholic and regular beer from grocery stores in 2017 and 2018. The study participants were loyalty cardholders from the largest food retailer in Finland (n=47,066). The level of education, household income and occupational status were analyzed as determinants of non-alcoholic beer purchase using logistic regression models. The changes in the regular and non-alcoholic beer purchases from 2017 to 2018 and the distributions of non-alcoholic beer purchase by regular beer purchase, by gender and by age were described. Between 2017 and 2018, the total volume of non-alcoholic beer purchases increased from 2.3% to 3.7% of the total volume of all beer purchases. Men and older people purchased non-alcoholic beer more often than women and younger people did. Non-alcoholic beer purchases were most common among the highly educated and high-income consumers. Non-alcoholic beer purchases were most prevalent in the groups with the highest volumes of regular beer purchase. Educated and affluent consumers have been the forerunners of non-alcoholic beer consumption in Finland. In order to promote the substitution of regular beer with non-alcoholic beer the shift towards lower-strength beverages should be facilitated across social strata.

Innovating agri-food business models after the Covid-19 pandemic: The impact of digital technologies on the value creation and value capture mechanisms

This paper investigates the phenomenon of business models innovation (BMI) empowered by digital technologies and activated as a response to Covid-19 crisis. In fact, during the crisis numerous digital redesigns of businesses occurred to pursue both continuity and competitive advantage. Among these, the food retail sector has undergone under the pressure of the crisis intense digital changes, which, however, have not yet been investigated under the theoretical lens of BMI. To fill this gap, the paper analyzes the digital actions taken during the pandemic crisis by two large food retailers, namely Walmart and Carrefour. Covering a wide temporal interval of the pandemic evolution and reviewing multiple geographical markets, the authors interpreted the grocer's digital responses to the crisis in terms of innovation in value creation and capture mechanisms. As a result, three phases of digital BMI have been reconstructed, each characterized by specific mechanisms of value creation and capture experienced by the two grocers during the pandemic. Leveraging these findings, the paper proposes a model capable of defining how digital BMI takes place in response to crises. Results broaden theoretical knowledge and practical suggestions on digital BMI in terms of enabling factors, actionable value mechanisms, and future business opportunities.

Central EEG Beta/Alpha Ratio Predicts the Population-Wide Efficiency of Advertisements.

Recent studies have demonstrated that the brain activity of a group of people can be used to forecast choices at the population level. In this study, we attempted to neuroforecast aggregate consumer behavior of Internet users. During our electroencephalography (EEG) and eye-tracking study, participants were exposed to 10 banners that were also used in the real digital marketing campaign. In the separate online study, we additionally collected self-reported preferences for the same banners. We explored the relationship between the EEG, eye-tracking, and behavioral indexes obtained in our studies and the banners' aggregate efficiency provided by the large food retailer based on the decisions of 291,301 Internet users. An EEG-based engagement index (central beta/alpha ratio) significantly correlated with the aggregate efficiency of banners. Furthermore, our multiple linear regression models showed that a combination of eye-tracking, EEG and behavioral measurements better explained the market-level efficiency of banner advertisements than each measurement alone. Overall, our results confirm that neural signals of a relatively small number of individuals can forecast aggregate behavior at the population level.

From Supermarkets to Online Shops: How did the Modern Food Retail Geography Change in Istanbul?

Since the 1980s, Turkey has undergone a process of internationalized capital, foreign capital entering the Turkish market and consumption becoming a lifestyle, under the impact of neoliberal policies. This process had a great effect on the retail sector, which has a dynamic structure. In order to survive in the climate of tough competition they found themselves in, retailers became organized, which included entry to new markets, growth through mergers and acquisitions and the formation of new channels. In this article, this process of change is explained using the conceptual framework of the “New” Retail Geography, which sees the relationship between space and retail as bilateral and mutually determinant. This article intends to answer the question, ‘How has the spatial structure of modern food retail[1] changed in Istanbul since the 1980s?’ and it focuses on the metropolis of Istanbul which accounts for a large proportion of total retail sales and where the greatest change is observed. In this context, a spatial diffusion process of change from supermarkets to large scale food retailers, to discount stores and finally to e-commerce, which has become more important with the effect of Covid-19.
 
 [1] Modern food retail or organized food retail can be used.

The Impact of Committing to Customer Orders in Online Retail

Problem definition: Online retailers are on a consistent drive to increase on-time delivery and reduce customer lead time. However, in reality, an increasing share of consumers places orders early. Academic/practical relevance: Such advance demand information can be deployed strategically to reduce costs and improve the customer service experience. This requires inventory and allocation policies that make optimal use of this information and that induce consumers to place their orders early. An increasing number of online retailers not only offer customers a choice of lead time but also, actively back-order missing items from a consumer basket. Methodology: We develop new allocation policies that commit to a customer order upon arrival of the order rather than at the moment the order is due. We provide analytical results for the performance of these allocation policies and evaluate their behavior with real data from a large food retailer. Results: Our policy leads to a higher fill rate at the expense of a slight increase in average delay. The analysis based on real-life data suggests a sizeable impact that should impact current best practices in online retail. Managerial implications: With the changing landscape in online retail, customers increasingly place baskets of orders that they would like to receive at a planned and confirmed moment in time. Especially in grocery, this has grown fast. This fundamentally changes the strategic management of inventory. We demonstrate that online retailers should commit early to customer orders to enhance the customer service experience and eventually, to also create opportunities for reducing the cost of operations. Supplemental Material: The online appendix is available at https://doi.org/10.1287/msom.2022.1124 .

Insights into the impacts of and responses to COVID-19 pandemic: The South African food retail supply chains perspective

Background: With the observed cases of the coronavirus disease 2019 (COVID-19) pandemic in South Africa, coupled with varying levels of national lockdowns, food retail supply chains in South Africa were adversely affected. The pandemic affected international travel, global logistics, supplier production and stockpiles at the supply end, which resulted in shortages at retailers and increased prices for basic food items.Objectives: The purpose of this article was to provide insights into and a synthesis of the impact of the COVID-19 pandemic on food retail supply chain models in South Africa.Method: A general review of both academic and grey literature (including commentaries) was studied to draw insights into the issues of food retail supply chain. This was combined with an examination of websites and annual reports of the major food retailers in South Africa to find their responses to the pandemic related to their supply chains.Results: It was found that the investment in supply chains and local supply development and the technology by the large food retailers in the country have paid off in the ways that they have been able to respond to and contain the shocks of the pandemic and point to the local versus the international when thinking about new supply chain models for the post-COVID-19 world.Conclusion: The insights drawn from this article may be useful in building more resilient food retail supply chains in the South African context. This article charts a way for more focused analyses using empirical data to thresh out more nuanced insights that will benefit the food retail supply chain and create a more resilient food system in South Africa.

I scream, you scream, we all scream for local ice cream: Consumer preferences for locally processed foods

AbstractThis study investigates consumer preferences for local brands of consumer packaged goods. Using a structural model of consumer demand for ice cream and data on retail ice cream sales from multiple locations of a large food retailer, we estimate consumer demand for local brands of ice cream and the willingness to pay for the local attribute. Using fixed and random coefficients logit models of product choice with cost shifters as instruments, we find that Ohio consumers are willing to pay, on average, an additional $0.13 per serving for local brands of ice cream. In counterfactual simulations, we estimate that replacing local brands of ice cream would reduce welfare by $2.78 million dollars annually for consumers in Ohio. For policymakers seeking to maintain and attract new local food producers, these results provide new insights into the potential gains that could result from increased local consumer packaged goods entrants [EconLit Citations: D12, D61, Q11, Q18].

The Role of Visibility in Sustainable Performance: Understanding the Effect of Institutional Forces

In past years, sustainable performance has become a key demand for shareholders and customers. However, there has been limited attention to the enabling effect of supply chain capabilities on sustainable performance. Focusing on the food industry, this study expands the notion that visibility is a dynamic capability that mediates the relationship between information sharing and sustainable performance. Furthermore, our mediation analysis is extended to understand how institutional forces, and more specifically Halal food requirements, influence such mediation process. The results from our analysis of data collected from 89 of the most important suppliers of two large food retailers in the Kingdom of Saudi Arabia indicate that information sharing enhances sustainable performance by facilitating visibility. They also indicate that the magnitude of such facilitation depends on institutional forces. These findings extend the existing academic literature and provide guidance to managers by creating a better understanding of how information sharing can lead to higher sustainable performance.

The economics of firm solar power from Li-ion and vanadium flow batteries in California

The cost of providing near 24-7-365 power from solar panels at a commercial facility in South California was modelled to be similar for vanadium flow batteries (VFB) and lithium ion batteries (LIB) at around $0:20/kWh. In hotter locations, LIB economics suffer due to accelerated background cell ageing. Even within South California there was enough variation to affect the economic comparison. Although LIB degradation could be reduced in a hybrid VFB-LIB system, there was negligible benefit to the overall electricity cost.As a result of falling photovoltaic panel costs in the last decade solar power (PV) is now claimed to be the cheapest source of electricity. However, the intermittent nature of supply means that it cannot solve the energy trilemma alone, and a form of backup power is required for reliability. This application is well suited to batteries, but the cost implications of providing high levels of reliability in this way have not been widely studied. In this work, the levelised cost of electricity (LCOE) achievable by optimal combinations of PV and batteries is determined for a large food retailer at a range of self-sufficiency ratios (SSR). Both lithium ion batteries (LIB), vanadium redox flow batteries (VFB) and hybrid systems of the two technologies are modelled. In combination with an over-sized PV array, both systems are capable of providing a SSR of 0.95 for a LCOE of less than $0.22/kWh. The optimal LCOE values overlap across the SSR range for both technologies depending on cost and ambient temperature assumptions. A VFB is more likely to give the lower LCOE at lower SSR, and a LIB is favoured at high SSR as the cycle rate drops as SSR increases. It is also shown that a state of charge (SOC) minimisation strategy has a significant impact on the LIB economics by reducing calendar ageing. Lastly, hybrid systems combining LIB and VFB were modelled, but in no cases showed an improvement over the optimal single choice. The overlap in the LCOE of the two battery types highlights the importance of other considerations, such as sustainability, space requirements and safety.Graphical abstract