Food-Retail Development and the Myth of Everyday Low Prices: The Case of Brazil
Article first published online: 6 DEC 2011
© The Authors 2012. Development Policy Review © 2012 Overseas Development Institute.
Development Policy Review
Volume 30, Issue 1, pages 49–66, January 2012
How to Cite
Monteiro, G., Farina, E. and Nunes, R. (2012), Food-Retail Development and the Myth of Everyday Low Prices: The Case of Brazil. Development Policy Review, 30: 49–66. doi: 10.1111/j.1467-7679.2012.00559.x
- Issue published online: 6 DEC 2011
- Article first published online: 6 DEC 2011
- first submitted April 2010, final revision accepted May 2011
- Food-retail development;
- price strategies
This article analyses the changes in Brazilian food retailing by investigating the co-existence of, and the pricing variation across, large supermarket chains and small independent supermarkets. It uses cointegration tests to show that, despite the widespread belief that small supermarkets are inefficient and charge higher prices, they in fact charge lower prices. Accordingly, in contrast to the prevailing literature on food-retail development, competition in food retail is complex and cannot be described as a simple Darwinian process of market concentration. The article explores the survival of small retail and its consequences for the current discussion on modern food retail in developing countries.