The food retail revolution in poor countries: Is it coming or is it over?

A case study of Madagascar was conducted to examine the food retailing in the poor country and to offer a unique insight into the potential for a retail revolution in poor countries, anticipating its impact. The study documented and compared the extents to which different types of global chains and local supermarkets have already invested, their niches compared to other outlets, and their growth prospects. The analysis showed a large quality difference in foods offered by the supermarkets as against the traditional markets, and also between global retail chains as opposed to domestic supermarkets. The data revealed that global retail chains sell more expensive food in this poor environment, even when one controls for quality measures and location. The study also showed that the other factors other than price that affect the growing global importance of supermarkets include income distribution, urbanization, female labor participation, and openness to foreign investments.