Competition & product quality in super market industry

 

NOVEMBER 14, 2012 Wednesday  When Walmart Arrives, Other Supermarkets Shape Up Local supermarkets reduce stockouts by an average of 10% and boost product variety after a Walmart supercenter opens nearby, according to a study by David A. Matsa of Northwestern University's Kellogg School. Despite persistent grass-roots opposition to Walmart's spread into U.S. communities, the supercenters spur existing supermarkets to make significant improvements, especially in poor areas, Matsa says. Competition from Walmart has been linked to bankruptcies of at least 25 supermarket chains. Source: Competition and Product Quality in the Supermarket Industry