Factors Affecting Grocery Pricing in the US and Abroad
Sure been at lot of profit taking since Mr. Skillen's seminal announcement. The linked post reminds me of a recent statement by another company spokesman. That one focused on the "Ten Banger Return" some folks got buying TLS during the dismal days of early 99 and selling into the post Y2K hype. Such statements go a long way to explain why TLS has been such a dismal long-term investment.
The more things change ... the more they stay the same. nf
----------------------------------------------------
Market Competition and Metropolitan-Area Grocery Prices
Abstract: This paper examines the relationship of 1987 retail grocery prices to supermarket sales concentration across 95 U. S. metropolitan areas. The regression model incorporates a large number of population, retail- cost, and retail competition factors and separate prices by type of grocery item. We find that the concentration- price relationship is sensitive to item type: positive for packaged, branded, dry groceries and unrelated for produce, meat, and dairy product prices. As for market rivalry, we find that small grocery stores provide no grocery price competition for supermarkets. However, branded grocery prices are driven down by fast-food places and by rapid price churning, whereas for unbranded foods the presence of warehouse stores places downward pressure on supermarket prices while fast-food presence does not.
agecon.lib.umn.edu
------------------------------------------------
Food Prices and market structure in Sweden
Summary: We explain price variation across grocery retailers by the concentration of wholesalers and retailers, and the market share of hypermarkets (and control for a number of store and region specific factors). A number of studies estimate the relation between market structure and prices (or price indexes) for different regional markets within the same industry, (driving lessons, Asplund and Sandin, 1999; credit, Berger and Hannan, 1989; gasoline, Borenstein and Shepard, 1996; beer, Culbertson and Bradford, 1991; Weiss, 1989, surveys early studies). Food retailing is also attractive to study the relation between prices and market structure, as there is substantial regional variation in explanatory variables -from small single store locations to large towns.
swopec.hhs.se |
