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  5. Local Food Retail Environment: Are Solutions for Equitable Food Access Attainable?
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Local Food Retail Environment: Are Solutions for Equitable Food Access Attainable?

Paper Session

Saturday, Jan. 4, 2025 8:00 AM - 10:00 AM (PST)

Hilton San Francisco Union Square, Union Square 12
Hosted By: Agricultural and Applied Economics Association
  • Chair: Gayaneh Kyureghian, IÉSEG School of Management

Does the Recent Food Price Inflation Differ by Store Format?

Qingyin Cai
,
University of Minnesota-Twin Cities
Metin Çakır
,
University of Minnesota-Twin Cities
Megan Sweitzer
,
U.S. Department of Agriculture

Abstract

Recent spikes in food prices have raised significant economic concerns in the United States. Understanding how food price inflation varies across store formats provides valuable insights into consumer behavior and the strategies retailers employ during economic downturns. In this study, we use retail scanner data to construct price indices by store format for various food product groups, allowing us to estimate differences in the rates of price changes across stores. We then estimate a structural store-choice model to examine how these differential rates of price changes affect consumers’ preferences for different store formats. Our findings reveal that food price inflation rates vary significantly by store format, with nontraditional stores generally experiencing lower inflation rates than traditional stores across most food categories. These differential price changes also influence consumer store and product choices.

Place-Based Policies and the Food Environment

Joel Cuffey
,
Auburn University
Ummey Honey
,
Auburn University

Abstract

We study the impact of place-based policies on the locations of retail food stores and fast food restaurants in the US. A household’s neighborhood environment contributes to a range of outcomes such as economic mobility and health. Less is known about how the neighborhood environment develops. State and federal policies incentivize local economic development in the form of financing and tax incentives. We measure the influence of these place-based policies on one dimension of a neighborhood environment – the food environment. We match information on the locations of place-based policies in 13 states to detailed data on the locations of all fast food restaurants and all retail food stores accepting food assistance. Using inverse probability weighting to match Census tracts with place-based policies to similar tracts without policies, we estimate that tax incentives increase the number of grocery stores but also fast food restaurants. The impact of tax incentives on fast food restaurants is particular salient in tracts with large minority populations.

Retail Food Environment and Online Food Purchases: Evidence from France

Gayaneh Kyureghian
,
IÉSEG School of Management
France Caillavet
,
INRAE
Jean-François Huneau
,
AgroParisTech

Abstract

Europe's online grocery market is experiencing strong growth, fueled by the convenience it offers in today's fast-paced society with high urbanization and higher than ever before labor market participation. Time-saving benefits, like avoiding store visits and product searches, are becoming increasingly attractive. Traditional food retailers are responding by adding online options, allowing customers to partially or completely bypass physical stores. This study explores whether the rise of online grocery shopping is influenced by the characteristics of the food retail environment itself. We will utilize primary data (Food Purchase Diary Surveys) on online and traditional grocery purchases (both at and away from home), along with demographic and geographic information about both the participants and the shopping venues. This research aims to gain a deeper understanding of whether, and to what extent, consumers can and do substitute traditional grocery shopping with online alternatives and whether this can be used to mitigate the lack of access in vulnerable places.

Discussant(s)
Joel Cuffey
,
Auburn University
JEL Classifications
  • A1 - General Economics