Grocery Business Transformation
Krogers, Safeway, and Albertsons (and whatever their "equivalents" are called in other locales) are to K-Mart as some of their newer competitors (including Wal-Mart superstores) are to Wal-Mart and newer upstarts (Kohls). What I'm trying to say is that I don't think labor costs are a factor for their market usurpation, just that new and different grocery models are supplanting their market power. And I believe such a strike in Arizona would be ineffective. I was thinking about this thread and the economist training in my head started churning...
Back in my parents day, grocery shopping was an affair that entailed a circuitous journey. Bread was bought at a bakery, meat at the butcher shop, produce at a produce store and/or farmer stand, and the grocer supplied canned goods and daily perishables (milk and bread). Then the supermarket chains consolidated, grew larger and offered prices that put the small time grocer out of business. And while some people still frequent farmers markets and bakeries, most began to fill the bulk of their grocery list at the Safeways and Krogers. Also, in many states, it wasn't until the early 80s where grocery stores were open late and open all days of the week (in many states, grocery stores were closed on Sundays).
Now, a different transformation is taking place and the Safeway and Kroger type stores are getting squeezed from both ends. First, from the Wal-Mart superstore bit that they publicly acknowledge. But they're getting squeezed from another end too, and I think they may not have a handle on this threat as just like K-Mart, their financial prospects are headed south.
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