Modern Food Retail Research Articles

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.

Exploring Consumer Trust in Extrinsic Quality Cues for Pork Products in China

ABSTRACT Modern food retailers in China use both intrinsic quality cues (IQCs) (e.g., umami and flavorfulness) and extrinsic quality cues (EQCs) (e.g., antibiotics-free) to market pork products. However, Chinese consumers trust IQCs over EQCs when judging the quality of pork. This study explored the reasons for this phenomenon and developed strategies for improving consumer trust in EQCs. This research engaged two focus groups and conducted 41 in-depth interviews, including consumers and managers of a leading fresh food retailer in Guangzhou. It was determined that the failure of linking EQCs with familiar IQCs was a key reason for their strong IQC preference. Food retailers enhanced EQC acceptance by integrating it into the existing IQC-based knowledge system, and highlighted transparency in production and distribution processes to build consumer trust in EQCs.The proximity of content and form between EQCs and IQCs will eventually improve consumers’ acceptance of EQCs.

FACTORS DETERMINING BUYER-SELLER RELATIONSHIPS: EMPIRICAL RESULTS FROM AN AGRIBUSINESS PERSPECTIVE

Continuous development of the Indonesian agri-food retail in the past decades has shown an evolutionary way on how the buyer and seller build their interaction during the exchange transaction process. It shows the significance of beneficial buyer-seller relationships in the shifting from traditional food retailing model to modern food retailing model, including in developing economy context. The study aims to investigate the factors affecting the buyer-seller relationship concept to access the modern market from the farmer producer perspective in the setting of an emerging market. This study surveyed 75 respondents of vegetable farmer group members located in a vegetable cluster in West Java, Indonesia. An explanatory quantitative method with Confirmatory Factor Analysis (CFA)was used for the data analysis. The findings verified four primary factors that can explain the B2B buyer-seller relationship of farmers deciding to partner with modern retailers such as supermarkets, which consists of trust, loyalty, relationship commitment, and business communication. The findings propose a further understanding related to the factors that influence the buyer-seller inter-relationships in the B2B context of the agriculture sector.

Pricing of livestock products in Indonesian modern food retailers during covid-19 pandemic

The role of modern markets is increasing in the food system in Indonesia, mainly as a result of technological and institutional advances. Indonesian households' food consumption still depends on staple food. The share of household expenditure on meat, eggs, and milk was only 12 percent. The purpose of the study was to analyze the pricing of livestock products in retail level in the modern market. The data used in this study is daily price data for beef, eggs, and chicken at wholesale and retail levels published through the National Strategic Food Price Information Center (PIHPSN) from January 2020 to December 2020. This study employed a quantitative method, through the formulation of an econometric model, and applied the 3SLS method to estimate the model. The results show that traders face an increasing price risk following the Covid-19 pandemic. The retailers enforce price stabilization at the consumer level when prices at the wholesaler level fluctuate. However, the study did not find the practice of price averaging between commodities at the retailers level. The results of this study are useful for policy formulations aimed at stabilizing food prices.

Co-ops 2.0: Alternative Retail Strategies to Support a Sustainable Transition in Food Retailing

While modern food retailing is characterized by high price pressure and low-quality differentiation resulting in a limited supply of sustainably produced alternative food products, cooperative retailing structures offer additional synergies in terms of logistics and operations that hold great potential to support the expansion of sustainable produce. Many retailers in Germany are organized in cooperatives of sufficient size to generate large-scale effects while still allowing individual retailers to pursue independent business structures. Cooperatives targeted to elaborate on collectivity operate a business. In economic terms this means that scale effects are used to elaborate and help single business. In the food sector cooperative structures in Germany provide a substantial impact in food delivery and provision, especially fresh foods are very sensitive and need fast circulation. Sourcing sustainable, local and regional foods are often produced (or rather crafted) in small scale entities. This paper asks the question of how and whether cooperative marketing structures help to deliver and use scale effects of larger entities, while still collaboratively encouraging food marketing. Accordingly, this paper reports on an investigation of the main challenges faced by members of a large-scale cooperative in retailing sustainably produced products and the motives of these retailers in choosing whether or not to sell such products. Taking the case of grass-fed beef sold by retailers within a large German cooperative, the study reveals that some of the obstacles to selling this sustainable product are comparable to challenges typically encountered in other retailing channels beyond cooperative structures. However, we also find that the flexibility of the cooperative structure enables individual retailers to bring their intrinsic motivation into (sustainable) action in the marketplace while taking advantage of the support offered by the cooperative in terms of marketing and consultation, etc. This analysis confirms that personal motivation within this cooperative structure is a strong determinant for individual retailers to pursue different pathways for the marketing and sale of sustainably produced food.

Using Google data to measure the role of Big Food and fast food in South Africa’s obesity epidemic

• Georeferenced Google data on supermarkets and fast food merged with nationally representative survey. • First study in a developing country to model effects of Big Food and fast food on consumer nutrition and health. • Household proximity to supermarkets and fast food restaurants contributes to rising BMI and higher probability of overweight and obesity. • Findings robust also when controlling for socioeconomic status and regional fixed effects. Many developing countries face a rapid increase in overweight and obesity, inasmuch as the prevalence has now nearly converged to levels observed in high-income countries. Among other factors, the rise in obesity is caused by a nutrition transition involving higher affordability and consumption of heavily processed or otherwise unhealthy foods containing high amounts of added sugar, fat, and salt. This development is accompanied by the growing expansion of, and increased access to, large modern food retailers (Big Food) and fast food restaurants. Using a novel methodology, we are able to link proxies of exposure to modern food environments based on Google data with nationally representative micro-level nutrition and health data to examine the influence of Big Food and fast food on overweight and obesity. The micro-level data come from the National Income Dynamics Study (NIDS) in South Africa, a middle-income country with alarming and further rising levels of obesity. We find that proximity to Big Food retailers and fast food restaurants increases overweight and obesity significantly, even after controlling for income and other confounding factors. The results suggest that the shape of food environments needs higher policy attention to promote more healthy food choices, which is true in South Africa and beyond.

Barriers to urban agriculture in Sub-Saharan Africa

Trends in urbanization and urban food insecurity in sub-Saharan Africa (SSA) have stimulated critical debates around the potential benefits of urban agriculture (UA) to urban livelihoods. Some scholars suggest that UA can contribute to the food quantity, food quality and income needs of urban households. However, much of the evidence cited comes from single case studies, with particular attention paid to large cities and high-income countries. There is a resulting gap in understanding regarding what role UA plays in the food security of households in smaller African cities and towns. These smaller urban areas are likely to house a large fraction of SSA’s urban population in future and are important sites for early intervention by policymakers. Our analysis is based on survey data collected from 2,687 low- and low-middle income households in 18 urban areas with populations of less than 200,000 across Zambia and Kenya. We perform statistical analyses to investigate the association between UA and household food security and assess which types of households are engaged in UA. We found that 33% of households in our sample are engaged in UA and there was limited statistical significance in terms of the relationship between UA and household food security. Our results reveal three key barriers to UA, namely settlement formality, property rights, and distance from food retailers. These barriers imply the need for urban planners and policymakers to revisit how decisions are made about issues such as residential development, land tenure, transport infrastructure, and the use of space in cities, as these affect the ability of households to produce, sell, and access food. Policy and planning mechanisms should further recognize the embeddedness of UA within African urban food systems, in which traditional markets, informal trading, and modern food retail also play an integral role.

Effects of Modern Food Retailers on Adult and Child Diets and Nutrition.

In many developing countries, food environments are changing rapidly, with modern retailers—such as supermarkets—gaining in importance. Previous studies have suggested that the rise of modern retailers contributes to overweight and obesity. Effects of modern retailers on dietary quality have not been analyzed previously due to the unavailability of individual-level dietary data. Here, we address this research gap with data from randomly selected households in Lusaka, Zambia. Anthropometric and food-intake data from 930 adults and 499 children were analyzed to estimate effects of purchasing food in modern retailers on body weight, height, and dietary quality while controlling for income and other confounding factors. The food expenditure share spent in modern retailers was found to be positively associated with overweight in adults, but not in children. For children, a positive association between expenditures in modern retailers and height was identified. Modern retailers contribute to higher consumption of ultra-processed foods and calories. But they also increase protein and micronutrient intakes among adults and children, mainly through higher consumption of meat and dairy. The findings underline that modern retailers can influence diets and nutrition in positive and negative ways. Differentiated regulatory policies are needed to shape food environments for healthy food choices and nutrition.

Impact of Poultry Farmers' Participation in Modern Food Retail Markets on Household Dietary Diversity: Lessons from Southeast Nigeria.

Simple SummaryDeveloping countries’ food systems are experiencing rapid transformations led by modern food retail market (MFRM) channels such as supermarkets, fast food firms, hotels, and convenience stores. This paper analyzes the impact of these channels on farm households’ dietary diversity with survey data from Southeast Nigeria. Estimates from the instrumental variable model show that participation in MFRM is associated with a significant increase in dietary diversity. Furthermore, the linkages through which MFRM participation impacts dietary diversity are analyzed using seemingly unrelated regression. Poultry farm income, consumption of poultry products produced by the farmer, and area of vegetable cultivated using poultry droppings have positive association with dietary diversity, while male controlled poultry farm revenue has negative association with dietary quality. Our study provides useful insights that poultry farm managers would find helpful. It also serves as a potential source of information for policymakers for planning as it links smallholder poultry farmers’ participation in modern food retail markets to improved nutrition.This study analyzed the interrelationships between participation in MFRMs and dietary diversity of poultry farming households in Southeast Nigeria. We used cross-sectional data from poultry farmers in Southeast Nigeria and employed instrumental variable and seemingly unrelated regression models to estimate the impact of MFRM participation and major linkages to poultry farm households’ dietary diversity. The results show that participating in MFRMs, relative to traditional markets, improved poultry farmers’ dietary diversity. Moreover, dietary diversity was positively related to higher poultry farm incomes, higher value of own poultry products consumed, and larger area of vegetable cultivated using poultry droppings as manure. Furthermore, increased poultry farm income, higher value of own poultry products consumed, and larger area of vegetable land cultivated using poultry droppings as manure increased the dietary diversity of the farm households. In contrast, a higher share of poultry production revenue controlled by men reduced household dietary diversity. These findings make clear the potential of improving farming households’ nutrition outcomes by promoting participation in MFRMs and the major impact pathways.

Food system transformation and its impact on smallholder farmers’ income and food security in Indonesia

Transformation of food system in Indonesia can have a profound impact on the supply chain of smallholder farmers. Policymakers are concerned about the impact of “modern food retail penetration” or ...

Food retail expansion patterns in Sub‐Saharan Africa and the Middle East and North Africa: Institutional and regional perspectives

AbstractFood retail transformation in developing countries continues to receive attention due to its implications for business expansion and food system development. We assess the dynamism of supermarketization in two relatively understudied regions—Sub‐Saharan Africa and the Middle East and North Africa—applying the institution‐based view and econometric analysis of a pooled cross‐sectional dataset of over 700 country‐year observations. While modern food retail has shown rapid growth, the traditional food retail segment is still dominant in both regions. The observed food retail patterns may be attributed to economic factors (income levels), sociodemographic (female labor force participation, urbanization, and religion), and institutional factors (control of corruption, ease of starting a business, time to enforce a contract, and World Trade Organization membership). However, while economic and sociodemographic variables exhibit similar effects in both regions, results are mixed regarding the institutional factors; potential explanations are suggested [EconLit citations: O100, L100].

Corporate social responsibility in a developing country context: a multi-dimensional analysis of modern food retail sector in Vietnam

ABSTRACTThis manuscript contributes to the Corporate Social Responsibility (CSR) literature in developing countries by providing a multi-dimensional analysis of CSR practices in the modern food retail sector (MFR) in Vietnam. By combining the views of different key stakeholders and consumers, key results show eight main themes dominating the CSR dialog in the MFR: fair operating practices, food quality and safety, transparency, procurement, labor rights, environmental protection, philanthropy, and sustainable food offerings. The study addresses a topic that has been barely covered by scientific literature but of great relevance for the Southeast Asian region and in particular for Vietnam‘s population.

Supermarket-Led Development and the Neglect of Traditional Food Value Chains: Reflections on Indonesia’s Agri-Food System Transformation

The rapid expansion of modern food retail encapsulated in the so-called ‘supermarket revolution’ is often portrayed as a pivotal driving force in the modernization of agri-food systems in the Global South. Based on fieldwork conducted on horticulture value chains in West Java and South Sulawesi, this paper explores this phenomenon and the concerted efforts that government and corporate actors undertake with regard to agri-food value chain interventions and market modernization in Indonesia. The paper argues that after more than 15 years of ‘supermarket revolution’ in Indonesia, traditional food retail appears not to be in complete demise, but rather adaptive and resilient to its modern competitors. The analysis of local manifestations of supermarket-led agricultural development suggests that traditional markets can offer certain advantages for farmers over supermarket-driven value chains. The paper further identifies and discusses two areas that have so far been neglected by research and policymaking and which warrant further investigation: (i) the simultaneous transformations in traditional food value chains and their relation to modern markets, and (ii) the social and environmental performances of modern vis-à-vis traditional food value chains.

Rewarding the good and penalizing the bad? Consumers’ reaction to food retailers’ conduct

PurposeThe purpose of this paper is to obtain insights into Vietnamese consumers’ knowledge and relevance of as well as their reaction to modern food retailers (MFRs) responsible and irresponsible conduct.Design/methodology/approachData were obtained from an online survey applying content analysis, uni- and multivariate tests and multivariate regression models.FindingsIn total, 60 percent of respondents are not aware of (ir)responsible conduct of MFR. Most of those aware of such behavior indicate that this has induced a change in their shopping behavior. This holds to a similar extent for those not aware but envisaging the (ir)responsible conduct of MFRs. The findings point to a negativity bias in that consumers’ reaction is more sensitive regarding irresponsible than responsible firm behavior. This bias is higher for consumers already knowledgeable about the (ir)responsible behavior of MFRs. The likelihood that consumers punish irresponsible conduct is influenced by the importance they attach to “food quality and safety” while those having high concerns for environmental, social and ethical’ issues are more likely to reward responsible firm actions.Research limitations/implicationsThe negativity bias which implies that consumers react more sensitive regarding irresponsible than responsible firm behavior is likely underestimated in hypothetical studies.Practical implicationsCustomer loyalty is at stake for MFRs behaving irresponsible while it can be strengthened by responsible firm conduct.Originality/valueThis research is the first to highlight the importance consumers in Vietnam attach to responsible firm conduct. It also points to a lack of awareness of such behavior.

Factors limiting the flow of food innovation ideas from modern food retailers to local food suppliers in Tanzania

This paper explores factors that constrain the flow of innovation ideas among downstream actors in the food value chain in Tanzania. Prior focus was on the improvement of products, but the influence of downstream actors has received little attention from the researchers in Africa. Qualitative method was deemed to be adequate and advantageous because the study was on understanding the challenges of innovation flow among downstream actors in the food value chain in Tanzania. Food suppliers were selected from international or local retailers using contact information of the processers provided on the packaging. The empirical findings of this study indicate that trade credit, government requirements, counterfeit products, consumers’ preference and lack of skilled staff limit the flow of innovation in the food value chain in Tanzania.

The non-globalisation of modern food retailing: the case of the failed Coop Norden merger

ABSTRACTBy discussing the creation and subsequent failure of Coop Norden, set up by the Scandinavian consumer co-operatives in 2002 as a common wholesale and food retail enterprise, this article provides insights into the nature of the Scandinavian food retail sector and co-operative enterprises in an era of globalisation. The article combines recent research on the globalisation of retailing with the academic literature on the economic position and development of consumer co-operative enterprises. The article concludes that the failure of Coop Norden can be seen as the natural consequence of two inherent problems: 1. A flawed vision among co-operative managers on how globalisation would impact retailing and 2. A misalignment between Danish, Norwegian and Swedish co-operative agendas. The article is based on comprehensive studies of the internal co-operative archives in Denmark and Norway.

Perspectives of retailers and local food suppliers on the evolution of modern retail in Africa

PurposeThe purpose of this paper is to present the findings of an exploratory qualitative study of the evolution of modern food retailing in Tanzania (from both retailers and suppliers’ perspectives).Design/methodology/approachThe qualitative case approach was used in this study. Participants were drawn from three sets of actors: retailers, local food suppliers, and government institutions. Data were collected using semi-structured interview format. Thematic qualitative analytical technique was used for the data analysis.FindingsAccording to the results of the study, seven major factors that account for the evolution of modern food retail in the country were identified. These are availability of suppliers, acceptance of trade credit, innovation, lifestyle change, institutional support, convenience, and availability of consumers.Originality/valueThe study has expanded the knowledge of the evolution of modern food retail in developing economies by using the relationship marketing theory. Furthermore, the study employed some major actors in the food value chain to understand determinant factors that accelerated the evolution of supermarkets in Tanzania.

Modern food retail and unfair trading practices

The abuse of bargaining power by retailers is reflected in unfair trading practices (UTPs) and there has been a growing interest among EU MSs to address them using regulatory approach and self-regulatory initiatives among market participants. The experiences of ex-YU and neighboring EU MSs are of interest for Serbia. Serbian food suppliers are not protected from UTPs apart from general competition and contract rules and payment terms regulation. Therefore, after a brief review of the global food retail trends and the role of power in the supply chain management in the introduction, the discussion focuses on UTPs and regulatory mechanisms to address them at the EU level, in selected EU MSs and in Serbia. Regarding existing EU and MS practices, it is recommended that Serbia introduce specific UTP regulation in the food supply chain and authorize the Commission for Protection of Competition for the enforcement.

Pilihan Tempat Belanja Masyarakat Perkotaan Dan Implikasinya Pada Peternak Ayam Petelur Di Perdesaan

The increasing prosperity of urban communities in Denpasar, responded by an increasing number of supermarkets and other modern food retailers has raised concerns about its negative impact on traditional retailers. In this paper we discuss about the choice pattern of public spending in the city of Denpasar in an increasingly demanding era of high quality standards. This paper also tries to explain how higher welfare of urban communities can also be distributed to farmers / ranchers in rural areas. This paper surveyed the urban community in Denpasar City to find out the choice of the shopping place for egg products. The results of the analysis using Multinomial Logit found that most people in Denpasar still shop at traditional markets and stalls for low-income and middle-income household, but some high-income household tend to shop in the modern market because they have higher quality compared to with traditional markets. People with higher education and younger household tend to shop in the modern market. Based on the choice of shopping place then we can conclude that the farmers/ranchers get a positive influence of increasing welfare in the city, because farmers/ranchers are only able to distribute their products to traditional markets, small shops and stalls.

SHORT SUPPLY CHAINS – FROM THE VIEWPOINT OF PRODUCERS

The modern food retail trade means a concentrated and overstocked market in developed countries as well as in many developing countries. Joining the food chains of the “modern retail trade” often poses a problem for small-sized agricultural producers, which decreases their market opportunities. Trading in short supply chains is an option for producers to reach markets and increase incomes. The object of this exploring study is to use primary interviews to assess the opinions and satisfaction of the producers trading in short supply chains about their sales opportunities. The main question is how short supply chains can perform their given roles as regards both producer positions and in rural development.