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Grocery Story Industry Analysis

In: Business and Management

Submitted By jbabcpei
Words 7280
Pages 30
Groceries, Supermarkets, and Beyond: The Food Retail Industry

John Abbott
Samia Bagdady
Kate deLima
Casey Gavin

MBA AF601: Economics for Managers
Spring 2010

The food industry has developed more structural specialization and diversity than probably any other industrial sector. Food moves from producer to consumer through many channels such as direct sale at the farm, heavily advertised brands in supermarkets, generic or store brands, through convenience stores and other institutional feeders. With great changes in American lifestyles since food delivery became industrialized, there have been significant shifts have taken place among these channels as well as profound changes within each. Therefore, the U.S. food system has experienced rapid development and has responded to periods of rapid economic growth, technical change, changes in household structure, rising consumer income and changing public policy. Its institutional structure has been transformed repeatedly. It has been subjected to periods of intense public scrutiny that have shaped much of the public policy that guides and constrains its conduct and performance. This large economic sector is affected by many forces, from Many influences or forces which affect this large economic sector. The list of interactive factors spans from basic agricultural commodity supply and demand situations to final consumer preferences (Padberg & Rogers, 1987).

Over the past centuries, grocery retailing has undergone numerous major structural and technological changes. Steigert, Sharkey and Brown offer this quick summary of the industry’s development: “In the mid-1800s, chain grocery stores typically were 500-600 square feet and contained a limited assortment of goods. By 1941, thousands of chain grocery stores were replaced by supermarkets with...

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