Household Food Access Research: Data, Applications, and Solutions

Transcription

1 Household Food Access Research: Data, Applications, and Solutions Ephraim Leibtag Food Markets Branch Food Economics Division Jean Kinsey Applied Economics and The Food Industry Center University of Minnesota

2 100% 80% 60% 40% 20% Expenditure Shares for Nontraditional Food Stores on the Rise 0% Traditional Retailers Source: ERS Calculations of ACNielsen Homescan Data Nontraditional Retailers

3 Expenditure Shares for Nontraditional Annual Percent Change Formats Warehouse Clubs Supercenters Mass Merchandisers Other Source: ERS Calculations of ACNielsen Homescan Data

4 Expenditure Shares for Nontraditional Formats Warehouse Clubs Supercenters Mass Merchandisers Other % 3.2% 2.8% 5.2% % 4.3% 3.0% 5.9% % 5.6% 3.1% 6.5% % 7.2% 3.3% 7.0% % 8.1% 3.9% 8.0% % 10.5% 3.6% 8.1% % 11.8% 3.6% 8.5% Source: ERS Calculations of ACNielsen Homescan Data

5 Nontraditional Retailers Lower Average Food Prices

6 Price Comparison Results (a) On average, nontraditional retailers have 27% lower food prices than traditional food stores. The expenditure share of nontraditional retailers stores increased 11.6% per year, on average. Food prices are 3.0% lower, or an about 0.75% lower per year.

7 Price Comparison Results (b) The spread of nontraditional retailers leads to lower prices from both: Households shifting their food shopping from supermarkets to nontraditional stores. Households who continue to shop at traditional supermarkets paying lower prices caused by the increased nontraditional retailer competition.

8 Results of Welfare Analysis Consumers who have the choice to shop at nontraditional retailers save about 20% of average food-at-home expenditures. About $500 per year saved when given increased shopping options. Source: Hausman and Leibtag (2005)

9 Specialty/Gourmet Food Stores Increase Health Food Options

10 Implications Entry of a nontraditional retailer into a new geographic market creates: Direct and Indirect price effects But not all have access to these options Why? Location Credit/Liquidity Lack of access to these types of stores creates a consumer welfare loss.

11 Food Access Research Questions Is healthy food less readily available in poor neighborhoods? What is healthy food? What are the barriers to shopping for food in these neighborhoods? Are there fewer stores available in these areas? Are the diets of consumers different in these locations relative to suburbs or small towns?

12 How do we define access to healthy food? A local market issue Household focused vs. Retailer focused Number of stores per capita Types of stores Store offerings/services/quality Food store prices Miles or travel time

13 What types of food data are available? Food Consumption Diaries Good Detail of Consumption Patterns No prices Food Purchase Data Good Detail of Prices and Quantities Purchased Household vs. Individual: Who ate what and when? Challenge: National/Market Representative vs. Local Area

14 Other Useful Data Sources Store Location Data Trade Dimensions (Spectra/VNU) STARS Data (FNS) Census Demographic Data Characteristics by zip code or census tract/block Population density, income, education, etc. Census of Retail Trade Number of stores, types of stores

15 Related ERS Research in Progress Food Accessibility in the Inner City: The Chicago Case (Kinsey, Behl,, Leibtag) Boston Metro area project (Katz, Leibtag, Pakes) Household vs. Community Effects: Who really pays more for food? (Stewart and Blisard)

16 Food Accessibility: Chicago Look at five sample neighborhoods in Chicago. Use Census and Trade Dimensions data. Map neighborhoods by census block groups demographics population density types of stores Spectra Data locates all stores by type Total sales, total square feet

17 Cook County, IL Clusters of block Groups (In Blue) Store Types Wholesale Club Conventional Drug Supermarkets Convenience Mass Merchandiser

18 Boston Project Match individual household purchase data to store-level data Create store-level price indices to estimate the average price level at a given store Estimate travel time and other costs and benefits across store and household types

19 Household vs. Community Effects Focuses on vegetable prices across households in different markets based on household and zip code characteristics Find that households with higher income and property values have increased spending on vegetables. Quality mix vs. Prices Significant price differences Cost-of-living benefit adjustments

20 Consumer-Based Improve access Possible Solutions Travel subsidy Healthy food subsidy/incentive program Food stamp policy? Nutrition education Retailer-Based Incentives to expand healthy offerings Tax-based incentives?

21 Questions

22 Contact Information Ephraim Leibtag