The effect of Wal-Mart supercenters on grocery prices in New England.

摘要

The competitive price effect of Wal-Mart Supercenters on national brand and private label grocery prices in New England (USA) was examined, using primary price data collected on several identical products from 6 Supercenters in Massachusetts, Connecticut and Rhode Island, as well as from conventional supermarkets. Taking into account demographics, store characteristics and market conditions, results showed that Wal-Mart decreases prices by 6-7% for national brand goods and by 3-8% for private label goods. Price decreases are most significant in the dry grocery and dairy departments. Moreover, Wal-Mart sets grocery prices significantly lower than its competitors.