Traditional food traders in developing countries and competition from supermarkets: Evidence from Indonesia

Indonesia’s urban centers recently underwent an explosion of supermarkets. With cheaper, higher quality commodities and better services, supermarkets have the potential to drive traders in traditional markets out of business. In this paper, we evaluate whether this is indeed the case. We find that t...

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Bibliographic Details
Published in:Food policy 2010-02, Vol.35 (1), p.79-86
Main Authors: Suryadarma, Daniel, Poesoro, Adri, Akhmadi, Budiyati, Sri, Rosfadhila, Meuthia, Suryahadi, Asep
Format: Article
Language:English
Subjects:
Agricultural and food market
Competition
Developing countries
Economic change
Food supply
Impact evaluation
Impact evaluation Traditional market Supermarket Urban Indonesia
Indonesia
LDCs
Markets
Public policy
Supermarket
Supermarkets
trade
Traditional market
Traditional markets
Urban
Urban areas
Vendors
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Summary:Indonesia’s urban centers recently underwent an explosion of supermarkets. With cheaper, higher quality commodities and better services, supermarkets have the potential to drive traders in traditional markets out of business. In this paper, we evaluate whether this is indeed the case. We find that traditional traders experienced declines in their business. However, both qualitative and quantitative findings indicate that the main cause of decline is not supermarkets. Instead, traditional markets are plagued with internal problems and face increasingly bitter competition from street vendors. Therefore, the policy recommendations include strengthening traditional traders and seriously tackling the problem of street vendors.
ISSN:0306-9192
1873-5657
DOI:10.1016/j.foodpol.2009.11.002