COMPETITION IN GROCERY RETAILING - THE IMPACT OF A NEW STRATEGIC GROUP ON BLS PRICE INCREASES

Metropolitan areas with a significant presence of warehouse stores had lower retail food price increases during 1977 to 1992 than did areas with no warehouse stores. The negative impact occurred largely during the first half of the 15-year period. Strategic learning appears to ha ve led to a different response from incumbent supermarkets during 1985 -1992. Change in prices was positively related to change in concentrat ion and negatively related to entry.