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The impact of supercenters on traditional food retailers in four markets

Kathleen Seiders (Kathleen Seiders is Assistant Professor of Marketing at Babson College, Wellesley, Massachusetts, USA.)
Constantine Simonides (Constantine Simonides Term Chairholder at Babson College, Wellesley, Massachusetts, USA.)
Douglas J. Tigert (Douglas J. Tigert is Professor of Retail Marketing, at Babson College, Wellesley, Massachusetts, USA.)

International Journal of Retail & Distribution Management

ISSN: 0959-0552

Article publication date: 1 May 2000

Abstract

Focuses on the impact of supercenters on traditional food retailers in four markets, including two small cities (Victoria, Texas; Gainesville, Georgia) and two large cities (Columbus, Ohio; Omaha, Nebraska). Consumer surveys were conducted in order to assess the effects of the entry of Meijer, Wal‐Mart, Kmart, and Target supercenters. The results show supercenters can gain from 15 to 20 percent of primary shoppers and an even greater proportion of secondary shoppers. Furthermore, the supercenter primary shoppers, and especially those of Wal‐Mart and Meijer, identified low price and assortment more often as the reason for store choice. In comparison, traditional supermarket primary shoppers were less willing to trade off locational convenience or, in some cases, quality and assortment. Wal‐Mart is predicted to continue to rapidly gain share at the expense of competitors who do not differentiate themselves in some significant way.

Keywords

Citation

Seiders, K., Simonides, C. and Tigert, D.J. (2000), "The impact of supercenters on traditional food retailers in four markets", International Journal of Retail & Distribution Management, Vol. 28 No. 4/5, pp. 181-193. https://doi.org/10.1108/09590550010319931

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MCB UP Ltd

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