Do the Poor Pay More for Food? An Analysis of Grocery Store Availability and Food Price Disparities

Abstract

Do the poor pay more for food? To answer this question, this study was conducted to provide an empirical analysis of grocery store access and prices across inner city and suburban communities within the Minneapolis and St. Paul metropolitan area. The comparison among different types of grocers and geographic areas is drawn from a survey of approximately fifty grocery items for fifty-five stores. Results indicate that the poor pay only slightly more in the Twin Cities grocery market. Morz significantly, those who shop in non-chain stores pay a significant premium, and the poor have less access to chain stores. This study mveals that the biggest factor contributing to higher grocery costs in poor neighborhoods is that large chain stores, where prices tend to be lower, are not located in these neighborhoods.Consumer groups have frequently contended that residents in poor, inner-city communities are at a disadvantage in the prices, quality, and quantity of groceries sold in their communities. This contention raises fundamental questions about grocery store access and prices. Do types and sizes of grocery stores located in the innercity differ from suburban neighborhoods? Do different types of grocers charge different prices? Do prices differ depending on location? To examine these questions, this study provides an empirical analysis of grocery store access and prices across inner-city and suburban communities within the Twin Cities-metropolitan area. Like many other midsized metropolitan cities in United States, the inner-city poverty problem in the Twin Cities has become more significant over the past decades.' Across the country, various researchers, community-based organiza-Chanjin Chung is Research Associate,

Access to Healthful Foods among an Urban Food Insecure Population: Perceptions versus Reality

“…This pattern of food store access in a low-income, minority, urban context corroborates prior research. 2,[9][10][11][12][13][14] Across the different store types, supermarkets offered the greatest access to healthful foods whereas local markets and convenience stores offered the least access. For example, 70% of the stores in the three target communities were convenience stores, yet 70% of these convenience stores did not sell any fresh fruits or vegetables.…”

“…8 Stores selling a wide variety of food items such as chain supermarkets tend to be located in areas that are predominantly populated by Whites and by people representing middle or high levels of income (i.e., populations with low levels of food insecurity), whereas convenience stores and smaller, nonchain grocery stores are more prevalent in communities predominantly populated by racial minorities and people living in poverty (i.e., populations with high levels of food insecurity). [9][10][11][12][13][14] In short, an inverse relationship exists between community access to chain supermarkets and rates of food insecurity.…”

“…2 Nonchain food stores including convenience and small and midsized grocery stores are up to two times less likely to sell all varieties of fresh fruits and vegetables compared to chain supermarkets. 10 Moreover, foods sold in convenience or nonchain grocery stores are typically more expensive (i.e., have a higher price tag) than the same product in a chain supermarket. 10 These data suggest that populations living in low-income and racial and ethnic minority communities, contexts in which food insecurity is most prevalent, may have difficulty adhering to obesity prevention efforts such as eating five or more fruits and vegetables per day because these healthful food options are inaccessible.…”

“…10 Moreover, foods sold in convenience or nonchain grocery stores are typically more expensive (i.e., have a higher price tag) than the same product in a chain supermarket. 10 These data suggest that populations living in low-income and racial and ethnic minority communities, contexts in which food insecurity is most prevalent, may have difficulty adhering to obesity prevention efforts such as eating five or more fruits and vegetables per day because these healthful food options are inaccessible. Understanding the person-environment interaction in areas with limited or no access to healthful foods is particularly important as public health efforts are developed to address obesity and food insecurity among disparate populations.…”

Service District Optimization: Usage of Facility Location Methods and Geographic Information Systems to Analyze and Optimize Urban Food Retail Distribution

“…Firstly, Kaufman et al (1997) point out that supermarket tend to have significantly lower prices than those of smaller foodstores (about ten percent on average) because they are able to capitalize on economies of scale and to withstand lower margins. Secondly, a study by Chung and Myers (1999) demonstrates that people in non-chain stores pay a premium to customers of chain stores. The net impact of chains on the price of a Thrifty food plan (TFP) market basket by the United States Department of Agriculture (USDA) was found to be as high as $15.94 (non-chain market price: $109.90).…”