Food Retail Sector Research Articles

Ensuring food secure cities – Retail modernization and policy implications in Nairobi, Kenya

Retail modernization with the influx of supermarkets is drastically changing the retail environment in many developing countries, especially in the face of rapid urbanization. In Nairobi, Kenya, the expansion of supermarkets has advanced much more compared to many other African cities with the Kenyan Government strongly promoting the retail modernization. In this study, we assess the impact of the pursued retail modernization on urban food access. The study reveals the limitations of using the supermarketization as a market solution to urban food insecurity. Supermarkets increase food access mainly for the higher income – and already food secure – consumers in the city, while the poor and food insecure are largely excluded from patronizing supermarkets and rely on the informal market. The study concludes by suggesting that food policies must embrace a new conceptualization of the food retail sector in which both formal and informal retailers coexist. Such more holistic food policies that stem from a food systems perspective are needed to build an inclusive urban food system that can tackle prevalent food insecurity in Nairobi. Although the research focused on Nairobi, the findings are of broader relevance to urban centers in the global South.

CONCEPTUAL MODEL IN INTEGRATED MARKETING COMMUNICATION

Integrated marketing communications are developing, with IMC approaches to communication with consumers seeing further enhancements in the scientific literature. However, in order to reach the marketing targets, a variety of IMC tools may be used in combination when implementing marketing activities. Despite each IMC tool in itself being highly distinctive, they all depend on each other in the creation of product consumption value and the enhancement of economic, communicational and social benefits. Purpose of the paper: The goal of the research is to assess the integrated marketing communications used in the marketing strategy of Latvian food retail chains. Methodology/methods: The following scientific research methods are used in the research study: analytical, comparative, graphical, statistical, observatory and interrogative. The research focuses on the Latvian food retail sector, with leading specialists from all Latvian food retail chains polled. The object of the research is Latvian food retail chains, and the subject of the research is integrated marketing communication as a set of tools. Findings: The results of the research are of both theoretical and practical value, as it confirmed the hypothesis that a complex use of IMC promotes a long-term relationship among all stakeholders of the selling and buying process. The authors have collected and classified IMC tools and, based on the results of the research, drawn up a conceptual model of integrated marketing communications.

INTEGRATED MARKETING COMMUNICATIONS IN SUSTAINABLE BUSINESS

Business sustainability hinges on authorities’ action, cooperation and willingness to protect nature and natural resources, but they also have to meet the economic needs and cultivate the economic opportunities, whilst also satisfying the social needs and building a fair relationship among the different social groups. One of the ways to develop a sustainable business is integrated marketing communications. When using integrated marketing communications, businesses – notably food producers and retailers – need to focus on the education of consumers, the ecological performance and impact of products on the environment and human health, thus contributing to a sustainable development of Latvia’s economy overall. The aim of the research is to evaluate the prospects of development of Latvian food retail chains through the use of integrated marketing communication tools for sustainable business. The following scientific research methods are used in the research study: analytical, comparative, graphical, statistical, observatory and interrogative. The research focuses on the Latvian food retail sector, the subject being Latvian food retail chains, with leading specialists from all Latvian food retail chains surveyed. The research confirmed the hypothesis of the positive influence of the use of IMC tools for sustainability upon demand at Latvian food retail chains, its contribution to the formation of public opinion on the importance of preservation of the environment, the enhancement of consumer awareness, the promotion of corporate social responsibility for consumer health, ecological products overall, and the role and contribution of a green economy to a sustainable development of the national economy as a whole. The author has defined IMC for sustainability, developed and classified IMC tools for sustainability, and drawn up an IMC model for sustainability. The results of the research are of both theoretical and practical value.

Fresh Produce Retail Price Comparisons in Trinidad and Tobago

As the competitive landscape of the food and grocery retailing sector in Trinidad and Tobago is being transformed and consumers are separated from producers, shoppers are more reliant on price/quality cues in making their purchase decisions. The purpose of this study is to identify the retail outlet with the lowest and or highest price for a selected number of fresh produce items, in an effort to direct shoppers to relatively cheap nutritious sources of fresh produce. ANOVA and the Games-Howell test were the analytical procedures used. The ANOVA results indicated that there is statistical difference for all the items at the different retail outlets – farmers’ markets, roadside markets, public markets and supermarkets.
 The Games-Howell results obtained indicated that the supermarket mean prices were the highest for all items. Shoppers who purchased pineapple at the farmer’s market instead of the supermarket in 2016 could have potentially achieved the greatest savings of $6.52/kg.
 JEL Classification: C12, Q13, M31

Monopoly Power Corrodes Choice and Resiliency in the Food System

The wave of mega-mergers sweeping the food, agribusiness, and retail grocery industry from seed to supermarket has accelerated consolidation and concentrated market power in the hands of only a few dominant corporations. Federal regulators have done little to curb the merger mania in these sectors, which will ultimately lower the prices farmers receive for crops and livestock and raise the prices consumers pay for food. But the consolidation also has significantly constrained the range of choices consumers have at the supermarket, prevented independent food innovators from surviving in the marketplace, amplified food safety problems, and presented challenges to the resiliency of the food system itself. This article examines the size, scale, and scope of recent mergers in the food, agribusiness, and grocery retail sectors and discusses the ramifications for consumers, farmers, and the food system.

Challenges of a one-health approach to the development of alternatives to antibiotics.

By 2050, global infectious disease caused by antibiotic-resistant bacteria is projected to be responsible for 10 million human deaths per year—1.8 million more than cancer. Antibiotic resistance is a natural phenomenon, but the anthropomorphic use of antimicrobials has created heightened selective pressure that has led to an increased presence of antibiotic-resistant bacteria in agriculture, aquaculture, and hospital environments. Concerns over the emergence of antibiotic-resistant bacteria that threaten human health has prompted the retail and fast food sector to promote meat and milk produced from livestock that are raised “without the use of antibiotics.” Antibiotics have become an integral component of intensive livestock production and are used to treat (therapeutic use) and prevent (prophylactic, metaphylactic) infectious disease and promote growth (subtherapeutic). The growing restriction of antibiotic use in livestock production has promoted research into a plethora of potential alternatives.

Advertising message and negative switching barrier: effects on repurchase intention and word-of-mouth

Purpose- This study researched into the impact of supply chain integration and firm performance of food retailers in Turkey. The main purpose of this study was to identify the impact of internal and external supply chain integration on firms’ business and operational performance in the food retail sector in Turkey. Methodology- Two big cities in Turkey, namely, Istanbul and Eskisehir were selected for this study due to the availability of major food retailers in these cities. Stratified sampling method was used to select respondents. In total, 216 firms were selected out of which only 208 firms responded to the questionnaire distributed. Structural Equation Model specifically Amos was used to analyse the data. Findings- The study found a positive and significant relationship between internal and external integration, and the study also found a significant and a positive relationship between internal integration and firms’ operational and business performance. On the other hand, the study also found a significant and a positive relationship between external integration and firms’ operational and business performance. Conclusion- Consequently, retailers in Turkey were admonished to practice and uphold supply chain collaboration with their suppliers and customers.

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.

ASYMMETRY IN FARM-RETAIL PRICE TRANSMISSION: THE CASE OF CHILI INDUSTRY IN INDONESIA

A decade of strong economic growth and rapid urbanization are transforming Indonesia’s food retail sector. In particular, supermarkets and related modern retail outlets are reorganizing how high value fruit and vegetable supply chains operate, effecting quantities, varieties, quality and prices. Among the agricultural development issues facing Indonesia’s policymakers are efficiency and distributional consequences of these transforming fruit and vegetable markets. This study examines asymmetric price transmission in chili supply chains to assess emerging market failures and potential equity implications for producers and consumers. The Indonesian government recognizes chilies as one of its 10 priority crops. Chilies are produced by more than 400,000 small scale producers and are an essential ingredient in the Indonesian daily diet. Historically, chili markets have exhibited large price fluctuations in Indonesia. Two methods for examining asymmetric price transmission are compared using monthly data over an 18 year period in Java: Houck’s model and the Error Correction Model (ECM). Although commonly believed that modern retail sectors are increasing market power and influencing prices, both models suggest that there is no price asymmetry issue in the chili supply chain in Indonesia. Key word: chili, price, asimetric, transmission

ASYMMETRY IN FARM-RETAIL PRICE TRANSMISSION: THE CASE OF CHILI INDUSTRY IN INDONESIA

A decade of strong economic growth and rapid urbanization are transforming Indonesia’s food retail sector. In particular, supermarkets and related modern retail outlets are reorganizing how high value fruit and vegetable supply chains operate, effecting quantities, varieties, quality and prices. Among the agricultural development issues facing Indonesia’s policymakers are efficiency and distributional consequences of these transforming fruit and vegetable markets. This study examines asymmetric price transmission in chili supply chains to assess emerging market failures and potential equity implications for producers and consumers. The Indonesian government recognizes chilies as one of its 10 priority crops. Chilies are produced by more than 400,000 small scale producers and are an essential ingredient in the Indonesian daily diet. Historically, chili markets have exhibited large price fluctuations in Indonesia. Two methods for examining asymmetric price transmission are compared using monthly data over an 18 year period in Java: Houck’s model and the Error Correction Model (ECM). Although commonly believed that modern retail sectors are increasing market power and influencing prices, both models suggest that there is no price asymmetry issue in the chili supply chain in Indonesia. Key word: chili, price, asimetric, transmission

Do Farmers’ Markets Boost Main Street? Direct-to-Consumer Agricultural Production Impacts on the Food Retail Sector

Do Farmers’ Markets Boost Main Street? Direct-to-Consumer Agricultural Production Impacts on the Food Retail Sector

Food waste reduction practices in German food retail.

The purpose of this paper is to investigate food retailers food waste reduction practices in Germany. The focus is on selling and redistributing agricultural produce with visual impairments and other surplus food items. In addition, drivers and barriers regarding the implementation of both waste reduction practices are explored. In total, 12 in-depth interviews with managerial actors in the food retail sector and a food bank spokesperson were recorded, transcribed and analyzed through a qualitative content analysis. In contrast to organic retailers, conventional retailers were reluctant to include agricultural produce with visual impairments in their product assortments, due to fears of negative consumer reactions. Another obstacle was EU marketing standards for specific produce. All retailers interviewed engaged in redistribution of surplus food. Logistics and the regulatory framework were the main barriers to food redistribution. The present study adds to the existing body of literature on food waste reduction practices as it explores selling produce with visual impairments and elaborates on the legal background of food redistribution in German retail. The results are the foundation for providing recommendations to policy makers and charitable food organizations.

Craig Johns, Pamela Lyon, Randy Stringer and Wendy Umberger. Changing urban consumer behaviour and the role of different retail outlets in the food industry of Fiji

The food industry is undergoing transformation globally. The set of circumstances specific to Fiji provides important insights into the drivers of this change, which have implications for private, government and donor agency stakeholders. A novel study of 1,000 urban households in Fiji found that among those surveyed, modern supermarkets have overtaken traditional markets as the dominant food retail outlet and now have 100 per cent patronage and take in 54 per cent of total household food expenditures. However, the battle for the fresh fruit and vegetable category appears to be in its infancy, with 97 per cent of households still shopping for products in this category at the traditional main market. Although foreign investment is a key driver of the retail food sector transformation in more rapidly growing developing countries, in Fiji, where foreign investment is relatively low, this transformation appears to be predominantly supported by rising urban income and changing consumer preferences. Consequently, policy attention should be directed towards market channels that can take advantage of changing consumer preferences, while still supporting local farmers.

Non-technological barriers to the diffusion of energy-efficient HVAC&R solutions in the food retail sector

SuperSmart is an European Union (EU) project aiming at speeding up the uptake of energy-efficient refrigeration, heating and cooling solutions for Europe's food retail sector, reducing its energy use, lowering its environmental footprint and increasing its economic benefits. The project pursues the removal of non-technological barriers to efficient heating & cooling in the European food retail sector and supports the introduction of a new EU Ecolabel for food retail stores.Non-technological barriers have been mapped and categorized by preliminary interviewing food retail sector stakeholders. While highlighting a general positive attitude towards energy efficiency of the sector stakeholders, the results of the survey reveal the need for specific actions focused on improving the knowledge level of technical staff, from the planning and design stage down to servicing and maintenance. Raising awareness about available technology and financial support is also required. In general terms, barriers are always perceived as stronger when moving North to South, and West to East in Europe, thus emphasizing the need for homogenization of virtuous practices and attitudes throughout Europe.

Energy efficiency in the food retail sector: barriers, drivers and acceptable policies

The objectives of this research are to examine empirically the drivers and barriers to energy efficiency measures in an important energy-using sector, namely, the food retail sector, and to gain an understanding of more effective energy efficiency policies in this sector. Although food retailers consume a significant amount of energy due to the specialised needs of stores, there has been little research on the barriers and drivers of energy efficiency measures in this sector. A survey of small food retailers was carried out to understand attitudes to energy efficiency measures and to examine the acceptability of different energy efficiency policy options. In addition, external stakeholders were consulted in order to validate and contextualise the results of the survey. We find that there is a complementary relationship between energy efficiency barriers and drivers for food retailers and that it is remarkably coherent. We identify policies, such as subsidies and support for ESCOs, that exploit both the complementarities between barriers and drivers and are acceptable to food retailers also. This methodology should help identify and design more effective policies to deliver energy efficiency improvements in the food retail and other services subsectors.

Grocery shopping, food waste, and the retail landscape of cities: The case of Seoul

The reasons for household food waste are complex and not yet fully understood, especially with regards to how the food retail sector might influence and interact with food management practices. This study explores the causes of household food waste from this perspective, drawing from practice theory and the concept of systems of provision. Survey data from 460 Seoul households is analyzed using bivariate and multivariate analyses to assess whether avoidable food waste per household member is affected by the type of food retailers (e.g. supermarkets, hypermarkets, traditional markets, etc.) a household buys its groceries from. Seoul was chosen as the research site due to its diverse food retail sector and South Korea's distinctive food waste policy environment. The results indicated that households' grocery shopping trips take on different characteristics depending on the type of retailer visited, and that these characteristics, including travel time and buying frequency, are differentially associated with over-purchasing and avoidable food waste. Overall, this study suggests that the influence of food retailers on household food waste is not limited to marketing promotions, but also extends to the ways they may shape households' grocery shopping patterns. As such, waste reduction policies and initiatives need to take urban retail development patterns into greater account in order to more effectively tackle the problem of household food waste.

Editorial and News

Editorial and News

MNCs in Varying Local Environments: Legitimacy Repair in Response to Framing by Governments

Repairing legitimacy loss upon intensifying scrutiny by local stakeholders has become salient among MNCs which increasingly face legitimacy risks in emerging economies. Systematic research is lacking, though, on how varying local environments shape MNCs legitimacy repair approaches and their outcomes. We conducted an inductive study of Walmart China's repair of legitimacy losses from two of its most attention-grabbing scandalspork mislabeling incident in Chongqing, 2011 and donkey meat (mixed with fox DNA) incident in Jinan, 2013. In this paper, we show how the changing national environment intensified the legitimacy risk of large MNCs particularly in the food retailing sector. However, the national environmental effects were amplified or downplayed by local governments, depending on varying local political and market conditions. Local governments were powerful frame articulators, which constructed frames varying in number, kind, and salience to identify the issues and the character of the MNC after the occurrence of negative incidents, leaving the MNC different leeway for legitimacy repair. We analyze how the organization subsequently adopted different legitimacy repair approaches, which generated different outcomes. The model that we construct contributes to research on environment-organization relations, framing, and legitimacy management. The paper highlights future research directions and provide implications for practitioners.

Metrics of Urban Sustainability: A Case Study of Changing Downtowns in Thunder Bay, Canada

Thunder Bay, a medium-sized city in Northern Ontario, has a twin downtown core model, arising from the merging of two former cities in 1970. Its north core, designated as the City’s Entertainment District has received considerable investment, notably a major waterfront renewal project undertaken in 2009 as part of an overall strategy towards downtown revitalization. Greater diversity of commercial functions and increasing residential capacity in downtowns are considered positive steps towards sustainable urban development. It is hoped the leadership taken by the City in its downtown capital investments can stimulate others (corporations and individuals) to re-invest in both living and working in more central locations to the benefit of environmental sustainability indicators like journey-to-work (distance and mode selected) and residential density. This article tracks changes in business composition and residential capacity during a five year period via the development of an intensive database of business and institutional activities. Urban sustainability metrics developed include residential capacity and density, business vacancy rates and business composition and turnover, which complement an existing measure of land-use diversity developed in earlier research. While major capital investments in downtown revitalization (such as the waterfront project) have fairly long-term impact horizons, data suggest some positive trends in the developed metrics in the downtown north core since 2009. In particular, there have been notable investments in waterfront condos and downtown lofts and some diversification in the food retailing and restaurant sectors. However, overall trends in downtown commerce are currently flat, indicative of a struggling local economy and a continued suburbanization of key commercial sectors.

(De) regulation of working time, employer capture, and ‘forced availability’: a comparison between the UK and Cyprus food retail sector

This article is concerned with exploring how working time is regulated and experienced in the international food retail sector in the UK and Cyprus. Following Martinez-Lucio and Mackenzie the article accepts that regulation in employment relations is a multifaceted phenomenon shared by a number of competing actors at different institutional levels. The paper highlights the limitations of working time regulation in the two countries and argues that employers are increasing their control over the timing and allocation of shifts and working time. The paper illustrates how employers ‘capture’ working time regulation by exercising their prerogative to more closely match working time with the exigencies of customer demand. In this environment, the paper reveals how employees are experiencing practices such as ‘forced availability’, coupled with pressure to extend working hours as well as facing increasing levels of unpredictability as to when they are required to attend work.