The economics of retailing fresh fruit and vegetables : with special reference to supermarkets

Abstract

In this study an attempt has been made to assess the economic performance of Christchurch fruit and vegetable retailers of various types. Of particular interest was the supermarket group. An attempt has also been made to make some judgements about the implications of this performance, in terms of economic welfare.

The four retail groups studied were:- (1) Supermarkets. This group consisted of store s selling groceries, meat, and fruit and vegetables which had four checkouts or more. It also included variety stores and department stores which had, as one department, a supermarket. (2) Fruiterers. This group was classified according to the same criteria as used by the New Zealand Statistics Department. The requirement of this classification is simply that the retailer himself decides whether or not he belongs to this group. (3) Super fruiterers. This group was separated arbitrarily largely according to their size of operation and trading characteristics. Their average fruit and vegetable sales are about three times that of conventional fruiterers and a high proportion of their sales are in case lots. Because the group is small their results need careful interpretation and the implications for policy are limited. (4) Grocer/dairies. This group consisted of remaining food retailers who sold fruit and vegetable items. They are the major fruit and vegetable outlet in Christchurch with their 1967 wholesale purchases amounting to 47% of Christchurch’s total wholesale purchases.