Dynamics in a Mature Industry: Entry, Exit, and Growth of Big-Box Grocery Retailers

Federal Trade Commission, Bureau of Economics, Working Paper No. 308

39 Pages Posted: 22 Oct 2011  

Dan Hanner

Government of the United States of America - Federal Trade Commission

Daniel S. Hosken

Government of the United States of America - Federal Trade Commission

Luke Olson

Federal Trade Commission

Loren Smith

Government of the United States of America - Federal Trade Commission

Multiple version iconThere are 2 versions of this paper

Date Written: September 22, 2011

Abstract

This paper measures market dynamics within the U.S. grocery industry (defined as supermarket, supercenter and club retailers). We find that the composition of outlets changes substantially, roughly 7%, each year, and that store sizes have increased as the result of growth by supercenter and club retailers. We find significant changes in the relative position of brands in markets over time. These changes are largely the result of expansion (or contraction) by incumbents rather than entry or exit. There is little entry or exit, except by small firms. Moreover, only in small markets do entrants gain substantial market share.

Keywords: Antitrust, Entry, Expansion, Retailing, Supermarkets, Supercenters, Market Dynamics

JEL Classification: D40, L4, L81

Suggested Citation

Hanner, Dan and Hosken, Daniel S. and Olson, Luke and Smith, Loren, Dynamics in a Mature Industry: Entry, Exit, and Growth of Big-Box Grocery Retailers (September 22, 2011). Federal Trade Commission, Bureau of Economics, Working Paper No. 308. Available at SSRN: https://ssrn.com/abstract=1947017

Dan Hanner

Government of the United States of America - Federal Trade Commission ( email )

600 Pennsylvania Ave., NW
Washington, DC 20580
United States

Daniel S. Hosken (Contact Author)

Government of the United States of America - Federal Trade Commission ( email )

600 Pennsylvania Ave., NW
Washington, DC 20580
United States

Luke Olson

Federal Trade Commission ( email )

600 Pennsylvania Avenue NW
Washington, DC 20580
United States

Loren Smith

Government of the United States of America - Federal Trade Commission ( email )

600 Pennsylvania Ave., NW
Washington, DC 20580
United States

Paper statistics

Downloads
93
Rank
233,879
Abstract Views
590