This has resulted in an ever-worsening cycle: As a system dominated by a few retailers lifts prices across the board — even at Walmart — consumers head to those retailers because of their ability to wrest relatively lower prices or simply because they’re the only options left. Walmart’s share of grocery sales swelled last year as more people flocked to its stores.
Meanwhile, the decline of independent grocers, which disproportionately serve rural small towns and Black and Latino neighborhoods, has left debilitating gaps in our food system. If Food Fresh were to close, residents of Evans County, where the store is, would have to subsist on the limited range of packaged foods sold at a local dollar store or drive about 25 minutes to reach a Walmart. (Nearly a quarter of Evans County residents live in poverty.) Living without a grocery store nearby imposes a daily hardship on people and could lead to an increased risk of diabetes, heart disease and other diet-related illnesses.
Losing small retailers also stifles innovation. New food companies rely on independent retailers to introduce products. But as this diversity of retailers gives way to a monocrop of big chains, start-ups have fewer avenues to success. This results in diminished selection for shoppers, who find store shelves stocked with only what the big food conglomerates choose to produce.
We need to stop big retailers from using their enormous financial leverage over suppliers to tilt the playing field. By resurrecting the Robinson-Patman Act, we could begin to put an end to decades of misguided antitrust policy in which regulators abandoned fair competition in favor of ever-greater corporate scale. There is promising momentum. Last year an unusual coalition of Democratic and Republican lawmakers sent a letter to the F.T.C. urging it to dust off Robinson-Patman. The agency began a broad inquiry in late 2021 into grocery supply issues, which could uncover evidence of price discrimination. This year the agency opened investigations into soft drink and alcohol suppliers for possible violations of the act.
These moves are already drawing fire from an old guard locked in bigger-is-always-better thinking. Jason Furman, a Harvard economist who served as a top adviser to President Barack Obama, tweeted recently that some of the views calling for a reset of our antitrust policies often seem “grounded less in consumer welfare and more in a view that everyone should be shopping at expensive craft boutiques.” But that’s not the story in places like Evans County. In the early days of the pandemic, as Walmart and Amazon compelled manufacturers to steer scarce supplies their way and worsened shortages at local grocers, Mr. Gay worked long days hustling to find alternate sources.
This content was originally published here.