Store Formats, Market Structure, and Consumers’ Food Shopping Decisions

Richard Volpe, Edward C. Jaenicke, Lauren Chenarides

Research output: Contribution to journalArticle

2 Scopus citations

Abstract

A growing literature in health and nutrition suggests that healthy foods are less available and more expensive at nontraditional store formats such as supercenters, convenience stores, and drug stores. We use Nielsen Homescan data to investigate the relationship between store format and the healthfulness of consumers’ grocery shopping. Accounting for a rich set of controls, as well as food retail market structure, we simultaneously estimate the healthfulness of consumers’ food purchases and the shares of food expenditure at traditional and nontraditional store formations. We find that healthier food choices are generally associated with higher food expenditure shares at supermarkets and supercenters and lower shares at drug stores and convenience stores. In addition, market concentration has a negative effect on shopping healthfulness.

Original languageEnglish (US)
Pages (from-to)672-694
Number of pages23
JournalApplied Economic Perspectives and Policy
Volume40
Issue number4
DOIs
StatePublished - Dec 1 2018

Keywords

  • consumer choices
  • dietary quality
  • food expenditures
  • household scanner data
  • market structure
  • store formats

ASJC Scopus subject areas

  • Development
  • Economics and Econometrics

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