The Economics of Supermarkets: A Brief Literature Review
dECON - FCS - UdelaR
December 6, 2011
Revista de Ciencias Empresariales y Economía, Universidad de Montevideo, Edición X: 73–86
This article presents a brief review of the literature on the effect of supermarkets on productivity, employment, the survival of small retailers, prices, and competition in retailing. The following stylized facts emerge: (1) the retail sector has undergone a major concentration around the world, (2) the entry of supermarkets tends to expel small competing groceries, and encourage the entry or conversion of others; (3) supermarkets are a source of productivity gains in the sector, (4) they generates a net increase in employment, and (5) has the effect of reducing the level of prices in markets where entry occurs. Some qualifications to these general conclusions are discussed.
Note: Downloadable document is in Spanish.
Number of Pages in PDF File: 14
Keywords: Supermarkets, retail, prices, productivity, employment, barriers to entry
JEL Classification: J21, J24, L11, L81
Date posted: June 6, 2012 ; Last revised: June 8, 2012