Company News • 29.03.2016

Demographic factors seem to influence whether a store carries organic food

NYU study examines where and why New York City retailers sell organic foods

Carolyn Dimitri is an applied economist who studies food systems and food...
Carolyn Dimitri is an applied economist who studies food systems and food policy, focusing on how food moves from the farm to the consumer.
Source: Steinhardt School of Culture, Education, and Human Development

A store's decision to sell organic food depends on its neighborhood demographics, and the range of organic foods offered for sale is linked to the size of the store, finds research by NYU Steinhardt School of Culture, Education, and Human Development.

The study, which focuses on New York City stores and is published in the Journal of Food Products Marketing, is among the first to provide an understanding of the factors that influence the range of organic food products offered by retailers.

Retail sales of organic food products have been increasing faster than any other category of food, reaching $37 billion in 2015, according to the Nutrition Business Journal. Organic foods are no longer just available in specialty stores, but have penetrated mainstream grocery stores and convenience stores.

While the market for organic food continues to grow, access to it remains a stumbling block for many potential buyers. In addition, the majority of research on organic markets has looked at the characteristics of consumers and what factors, such as level of education, affect their likelihood of buying organic food.

"The amount and variety of organic foods purchased are affected by both consumer preferences and the availability and affordability of organic foods," said study author Carolyn Dimitri, associate professor of food studies at NYU Steinhardt.

In this study, the researchers focus on the retailer's decision to stock and sell organic food. They approached this decision as two-stage process: whether to offer organic food, and how many different organic products to sell.

Rather than gathering data using supermarket scanners or sales records, the researchers and a group of NYU Steinhardt food studies students paid visits to a total of 1,256 food stores in Manhattan. They looked for a list of 24 organic food items - including apples, carrots, potatoes, eggs, chicken, and milk - to track how many of the items were available at each store.

Dimitri and her colleagues then created an Organic Food Products Index to calculate the availability of organic foods at the stores. Overall, 60 percent of the stores (746 stores) had an Organic Food Product Index of zero, as they did not sell any organic food products. About a third of the stores (405 stores) sold at least one but less than half of the organic foods on the list, and around 5 percent of stores (66 stores) sold at least half of the 24 organic foods.

The researchers then created a map of their findings and compared the availability of organic food with data on Manhattan's neighborhood characteristics. They found a relationship between a store's decision to offer organic food and the local residents' median income, age, and education. The bulk of stores with more than half of the organic foods on the list were in the Upper East Side and Upper West Side, neighborhoods with higher median incomes and education levels.

"By finding that the decision to carry organic food in a store is related to the education and income of a neighborhood, our research aligns with the existing literature on the characteristics of organic food consumers. It lends support to the notion that consumers with greater access to organic food are more likely to buy organic food," said Dimitri.

While demographic factors seemed to influence whether a store carried organic food, they did not influence the amount of organic food products. However, the size of a store - measured by how many registers each had - was linked to the number of organic food items offered. In other words, the more registers a store has, the higher the Organic Food Products Index.

Future research will assess both the supply and demand sides of the market to shed light on the importance of consumer income, education, and retailer access in the decisions behind both buying and selling organic food.

Source: Steinhardt School of Culture, Education, and Human Development

related articles:

popular articles:

Thumbnail-Photo: Store Transformation drives Self-Service Technology...
08.01.2019   #Trade fair special EuroCIS 2019

Store Transformation drives Self-Service Technology

Self-Checkout Solutions at EuroCIS 2019

The annual “Global EPOS and Self-Checkout” report care of London-based market research and consulting firm RBR shows what is happening around the globe at self-service checkouts. According to the report, retailers worldwide ...

Thumbnail-Photo: The new connection: Mobile payment via electronic shelf labels...
03.01.2019   #mobile payment #brick and mortar retail

The new connection: Mobile payment via electronic shelf labels

Interview with Alexander Hahn from digital payment service provider Wirecard

It’s a customer’s dream: no more waiting in line at the checkout counter. At this point, consumers can already scan their purchases with their smartphones, pay and leave the store. Wirecard collaborates with SES-imagotag and makes this ...

Thumbnail-Photo: The right payment options for online stores
11.02.2019   #online trading #security

The right payment options for online stores

How you can combat shopping cart abandonment with the right methods

One of the main reasons why shoppers will abandon a purchase is when popular online payment methods are not an option. That’s why online retailers must know what these payment options are. We give you an overview of the pros and cons for ...

Thumbnail-Photo: Trend 2019: The digitization of the stationary retail trade...
29.11.2018   #digitization #omnichannel

Trend 2019: The digitization of the stationary retail trade

From retail to omnichannel business model

For stationary retailers, it is no longer enough to think individually about e-commerce or other digital strategies. Instead, the focus is on networking online, mobile and offline channels and implementing a multichannel strategy, the so-called ...

Thumbnail-Photo: Exceptional design, robust character, and high-performance POS technology...
12.02.2019   #Trade fair special EuroCIS 2019 #POS Solutions

Exceptional design, robust character, and high-performance POS technology

AURES showcases new product lines

The design aesthetics of POS systems play an ever-important role. This applies to the retail industry, commerce, the service sector, catering and hospitality businesses alike. Strong brand awareness and a clear brand identity at the POS are ...

Thumbnail-Photo: Toshiba spotlights new innovations for empowering retail...
21.01.2019   #mobile payment #payment systems

Toshiba spotlights new innovations for empowering retail

Showcasing its latest solutions, services and innovative concepts at hall 9 booth B42

Visitors to EuroCIS 2019 will learn at Toshiba's booth how every retailer can design his checkout to suit his and the customers' needs. Under the motto "Empowering the Art of Retail", Toshiba will present its end-to-end IT ...

Thumbnail-Photo: retail trends: focus Retail Technology
12.02.2019   #mobile shopping #digital marketing

retail trends: focus "Retail Technology"

Omnichannel commerce, mobile shopping, seamless checkout – technology trends 2019

Would you like to find out about the latest retail technologies and hold something tangible in your hands at the same time?We'll be happy to send you a copy of our print edition retail trends: with the focus on "Retail Technology" ...

Thumbnail-Photo: Six trends affecting our business and the security sector...
06.02.2019   #security #trend research

Six trends affecting our business and the security sector

2019 technology trends

It’s become something of a tradition to write about the key technology trends that we think will have a significant impact on our business over the coming year and the security sector as a whole. Future-gazing is never an easy task, and while ...

Thumbnail-Photo: RFID tags with features for the cashierless store...
29.10.2018   #mobile payment #payment systems

RFID tags with features for the cashierless store

Customers can unlock products on their own thanks to smart tags

China and the U.S. already feature cashierless stores but things are coming along in Europe, too. Several startup companies want to eliminate long checkout lines and advertise better retail security tags. We took a closer look at these ...

Thumbnail-Photo: Self-service sells
08.02.2019   #touch screens #kiosk terminals

Self-service sells

Kiosks represent an important part of retail’s future

Self-service is growing exponentially in all areas of retail, hotels, restaurants, healthcare and banking environments. Customers increasingly expect self-service technology options and traditional brick-and-mortar stores are no exception. Retailers ...

Supplier

Superdata EDV-Vertrieb GmbH
Superdata EDV-Vertrieb GmbH
Ruhrstr. 90
22761 Hamburg
SES-imagotag Deutschland GmbH
SES-imagotag Deutschland GmbH
Bundesstraße 16
77955 Ettenheim
Casio Europe GmbH
Casio Europe GmbH
CASIO-Platz 1
22848 Norderstedt
Intenta GmbH
Intenta GmbH
Ahornstraße 55
09112 Chemnitz
POSIFLEX GmbH
POSIFLEX GmbH
Flinger Broich 203
40235 Düsseldorf
ROQQIO Commerce Solutions GmbH
ROQQIO Commerce Solutions GmbH
Harburger Schloßstraße 28
21079 Hamburg
APG Cash Drawer
APG Cash Drawer
4 The Drove
BN9 0LA Newhaven
EUROEXPO Messe- und Kongress-GmbH
EUROEXPO Messe- und Kongress-GmbH
Joseph-Dollinger-Bogen 9
80807 München
Allgeier Enterprise Services
Allgeier Enterprise Services
Westerbachstr. 32
61476 Kronberg im Taunus
LANCOM Systems GmbH
LANCOM Systems GmbH
Adenauerstraße 20 / B2
52146 Würselen