Evolving Research on Price Competition in the Grocery Retailing Industry: An Appraisal

Abstract

With the end of the Supermarket Revolution in the 1970s, new forms of horizontal, vertical, and geographic competition have appeared to challenge the supremacy of the supermarket format. New retail formats like warehouse stores, supercenters, and fast-food outlets appear to affect local retail supermarket prices. Slotting allowances, coupons, and electronic data gathering have intensified retailer-manufacturer rivalry. Foreign direct investment offers the promise of new European-style management styles in U.S. grocery retailing.