Specific Objectives

The purpose of our research was to examine and quantify the pricing and promotional activity of two major US supermarkets chains, Safeway and Albertsons.

Project Report

We compiled weekly data for over one year on nearly every product sold in 15 Safeway stores and nine Albertsons stores throughout the U.S., with nearly all of the stores falling west of the Mississippi River. The data include prices and, when applicable, promotions. We estimated econometrically the principal determinants of prices, promotional frequency, and promotional depth across the western United States. We also described and quantified the extent to which Safeway and Albertsons compete with one another in prices, promotions, and product offerings. We have also found important new results on the interactions between national brands and the chains' private label products that counter conventional wisdom regarding these interactions. This work is all part of Volpe's dissertation research. A complete draft of the thesis has been completed and revisions are underway.