Supermarkets and their impacts on the agrifood system of Brazil: The competition among retailers

Abstract

This article proposes an explanation for evidence that challenges the received knowledge in relation to the advance of large supermarket chains in the Brazilian food market. It was thought that the large, more efficient chains would eliminate the traditional stores and the smaller supermarkets as well, based on price competition. However, the evolution of the food retail structure in Brazil shows growth in the number of traditional firms and independent supermarkets in the last nine years, with little evidence of loss of importance in food sales, especially as to the independent supermarkets whose share in food sales has grown. [EconLit citation: L100, L130, Q130.] © 2005 Wiley Periodicals, Inc. Agribusiness 21: 133-147, 2005.

Traditional food traders in developing countries and competition from supermarkets: Evidence from Indonesia

“…After several years of competition, the traditional retailers that are usually still in business are those selling niche products. An exception to this is in Brazil, where it appears that traditional traders are able to coexist with modern retailers by depending on traditional food preparation habits and ensuring fresher products (Zinkhan, Fontenelle, and Balazs, 1999;Farina, Nunes, and Monteiro, 2005).…”

Does Supermarket Purchase Affect the Dietary Practices of Households? Some Empirical Evidence from Guatemala

“…However, the impacts of other potentially obsogenic environments such as location of purchase, the expansion of supermarkets, etc., on the nutritiontransition are not well investigated. Several studies have analysed the evolution, expansion and diffusion of supermarkets and their impact on food retailing and small farmers (Kaufman, 1998;Belik and dos Santos, 2002;Ghezan et al, 2002;Gutman, 2002;Reardon and Berdegué, 2002;Schwentesius and Gómez, 2002;Weatherspoon and Reardon, 2003;Berdegué et al, 2004;Codron et al, 2004;Dries et al, 2004;Hu et al, 2004;Neven and Reardon, 2004;Reardon and Swinnen, 2004;Rodriguez et al, 2002;Farina et al, 2005;Traill, 2006). Some studies also examined the link between the expansion of supermarkets and consumer preferences and food safety (Rodríguez et al, 2002;Balsevich et al, 2003;Berdegué et al, 2003a;Berdegué et al, 2003b).…”

The Value of Domestic Supply Chains: Producers, Wholesalers, and Urban Consumers in Colombia

“…In theory supermarkets should be able to offer lower prices, given their overwhelming bargaining power in relation to suppliers and because they are able to use economies of scale beyond the possibilities of their smaller competitors. The evidence from developing countries is scant, but the preliminary verdict is decidedly mixed: empirical studies in Kenya (Tschirley et al, 2004) and Madagascar (Minten, 2008) find consistently higher prices in supermarkets (even controlling for quality), while studies from South Africa (D'Hease and Van Huylenbroeck, 2005) and Brazil (Farina et al, 2005) point to the opposite conclusion. More detailed research on prices is needed, but the evidence from Bogotá suggests that, even despite supposed transaction inefficiencies, traditional chains are able to offer a basket of goods at competitive prices.…”