An Analysis of the Retail Grocery Industry: The Spatial Effects of Supercenters

During the past two decades, grocery has shifted from an industry dominated by small grocers serving local markets to one characterized by large retailers present in international markets. Supercenter and warehouse stores continue to expand into the retail grocery industry due to many factors, including supply chain management strategies which drastically lower costs compared with traditional grocers, fewer weekly trips to supermarkets by consumers, and evolving store formats. The Schumpeterian tradition would suggest that the "creative destruction" introduced by supercenter and warehouse stores should drive economic progress, but concerns have emerged that the large international grocers are in a position to harm consumers.