Simulating Store Management and Competition in Food Retailing
Richard Volpe(a) and Jeremiah Danley(a)
(a)California Polytechnic University
JEL Codes: A22, D11, D15, L11, Q18
Keywords: consumer behavior, demand analysis, food retail, market structure, pricing strategy, simulation game
First Published Online: June 12, 2026
View Full Article (PDF) | Request Teaching Notes/Supplemental Materials
Abstract
The paper describes a framework and game to simulate the operation of supermarkets in the contemporary US grocery landscape. The game can be incorporated into courses in agribusiness, management, economics, food marketing, and related fields. Students make decisions about products to stock, prices, inventory levels, and promotional activity. Simulated households make store decisions and purchase decisions, which determine sales and market share. Students calculate store financials and are encouraged to present their strategy, findings, performance, and outlook for the future. The code needed to run the game and other supporting materials are provided.
References
Asplund, M. 2002. “Risk-Averse Firms in Oligopoly.” International Journal of Industrial Organization 20(7):995–1012. https://doi.org/10.1016/S0167-7187(01)00070-4
Basker, E. 2007. “The Causes and Consequences of Wal-Mart’s Growth.” Journal of Economic Perspectives 21(3):177–198. https://doi.org/10.1257/jep.21.3.177
Bell, D.R., T.H. Ho, and C.S. Tang. 1998. “Determining Where to Shop: Fixed and Variable Costs of Shopping.” Journal of Marketing Research 35(3):352–369. https://doi.org/10.1177/002224379803500306
Carpenter, J.M., and M. Moore. 2006. “Consumer Demographics, Store Attributes, and Retail Format Choice in the US Grocery Market.” International Journal of Retail & Distribution Management 34(6):434–452. https://doi.org/10.1108/09590550610667038
Chen, B., S. Saghaian, and Y. Zheng. 2018. “Organic Labelling, Private Label, and US Household Demand for Fluid Milk. Applied Economics 50(28):3039–3050. https://doi.org/10.1080/00036846.2017.1414936
Fitzsimons, G.J. 2000. “Consumer Response to Stockouts. Journal of Consumer Research 27(2):249–266. ttps://doi.org/10.1086/314323
FMI. 2024. “Food Industry Facts.” Available online at: https://www.fmi.org/our-research/food-industry-facts
Food Institute. 2023. “Drive Impulse Purchases using Urgency and Store Layout.” https://foodinstitute.com/focus/drive-impulse-purchases-using-urgency-and-store-layout/
Geyskens, I., K. Gielens, and E. Gijsbrechts. 2010. “Proliferating Private-label Portfolios: How Introducing Economy and Premium Private Labels Influences Brand Choice.” Journal of Marketing Research 47(5):791–807. https://doi.org/10.1509/jmkr.47.5.791
Gönsch, J. 2017. “A Survey on Risk-averse and Robust Revenue Management.” European Journal of Operational Research 263(2):337–348. https://doi.org/10.1016/j.ejor.2017.05.033
Gonzlez-Benito, S., and J. Gonzlez-Benito. 2005. “The Role of Geodemographic Segmentation in Retail Location Strategy.” International Journal of Market Research 47(3):295–316. https://doi.org/10.1177/147078530504700305
Gundala, R.R., and A. Singh. 2021. “What Motivates Consumers to Buy Organic Foods? Results of an Empirical Study in the United States.” PLoS One 16(9):e0257288. https://doi.org/10.1371/journal.pone.0257288
Kuduvalli Manjunath, K.S., S. Habeeb, P. Solomon, C. Jebarajakirthy, H. Maseeh, R. Saha, and A. Bharti. 2025. “Systematic Literature Review on Retail Agglomeration.” Marketing Intelligence & Planning 43(6):1037–1079. https://doi.org/10.1108/MIP-11-2023-0593
Larson, R.B. 2019. “Supermarket Self-Checkout Usage in the United States.” Services Marketing Quarterly 40(2):141–156. https://doi.org/10.1080/15332969.2019.1592861
Larson, R.B., and B. Ferrin. 2023. “Exploring Shopper Reactions to Grocery Stockouts.” Journal of Food Products Marketing 29(1):1–18. https://doi.org/10.1080/15332969.2019.1592861
Merz, B., E. Temme, H. Alexiou, J. Beulens, A. Buyken, T. Bohn, et al. 2024. “Nutri-Score 2023 Update.” Nature Food 5(2):102–110. https://doi.org/10.1038/s43016-024-00920-3
Moran, C.D. 2024, July 10. “Private Brands Hit Record Highs in Unit and Dollar Share in First Half of 2024.” GroceryDive. Available online: https://www.grocerydive.com/news/private-brands-hit-record-highs-unit-dollar-share-first-half-2024-plma-circana/720965/
Morrison, P.A., and A. Abrahamse. 1996. “Applying Demographic Analysis to Store Site Selection.” Population Research and Policy Review 15:479–489. https://doi.org/10.1007/BF00125866
Morse, D.A. 1997. The Supermarket Industry. Greenwood Press.
Narasimhan, C., and R. Wilcox. 1998. “Private Labels and the Channel Relationship: A Cross‐Category Analysis.” Journal of Business 71(4):573–600. https://doi.org/10.1086/209757
PR Newswire. 2025, November 24. “Report: CEO Departures Are Rising, Even at Strong-Performing Companies.” Available online: https://www.prnewswire.com/news-releases/report-ceo-departures-are-rising-even-at-strong-performing-companies-302624626.html
PYMNTS. 2023., February 8 “Older Grocery Shoppers Much More Deal Motivated Than Younger Counterparts.” Available online: https://www.pymnts.com/consumer-insights/2023/older-grocery-shoppers-much-more-deal-motivated-than-younger-counterparts/
Redine, A., S. Deshpande, C. Jebarajakirthy, and J. Surachartkumtonkun. 2023. “Impulse Buying: A Systematic Literature Review and Future Research Directions.” International Journal of Consumer Studies 47(1):3–41. https://doi.org/10.1111/ijcs.12862
Reed, C., T. Yu, and D. Hughes. 2023. “Evaluating the Factors Influencing the Location Strategies of Specialty Grocers Versus Traditional Supermarkets in the United States. Applied Geography 158:103034. https://doi.org/10.1016/j.apgeog.2023.103034
Rose, N., F. Rowe, and L. Dolega. 2023. “How Consumer Behaviours Changed in Response to COVID-19 Lockdown Stringency Measures: A Case Study of Walmart.” Applied Geography 154:102948. https://doi.org/10.1016/j.apgeog.2023.102948
Sogn‐Grundvåg, G., T. Larsen, and J. Young. 2014. “Product Differentiation with Credence Attributes and Private Labels: The Case of Whitefish in UK Supermarkets.” Journal of Agricultural Economics 65(2):368–382. https://doi.org/10.1111/1477-9552.12047
Taylor, R.L. 2020. “A Mixed Bag: The Hidden Time Costs of Regulating Consumer Behavior.” Journal of the Association of Environmental and Resource Economists 7(2):345–378. https://doi.org/10.7910/DVN/7ICV6Y
Ter Braak, A., M.G. Dekimpe, and I. Geyskens. 2013. “Retailer Private-Label Margins: The Role of Supplier and Quality-Tier Differentiation.” Journal of Marketing 77(4):86–103. https://doi.org/10.1509/jm.11.0566
US Bureau of Labor Statistics (BLS). 2024. “National Industry-Specific Occupational Employment and Wage Estimates.” Occupational Employment and Wage Statistics. Available online: https://www.bls.gov/oes/current/oessrci.htm
Ufer, D., D.L. Ortega, and C.A. Wolf 2022. “Information and Consumer Demand for Milk Attributes: Are Redundant Labels an Effective Marketing Strategy?” Applied Economic Perspectives and Policy 44(2):960–981. https://doi.org/10.1002/aepp.13155
Ver Ploeg, M., P. Dutko, and V. Breneman. 2015. “Measuring Food Access and Food Deserts for Policy Purposes.” Applied Economic Perspectives and Policy 37(2):205–225. https://doi.org/10.1093/aepp/ppu035
Volle, P. 2001. “The Short-Term Effect of Store-Level Promotions on Store Choice, and the Moderating Role of Individual Variables.” Journal of Business Research 53(2):63–73. https://doi.org/10.1016/S0148-2963(99)00074-0
Volpe, R. 2023, December 20. “Understanding and Addressing Staff Turnover in Food and Agriculture.” New Food Magazine. Available online: https://www.newfoodmagazine.com/article/197031/understanding-and-addressing-staff-turnover-in-food-and-agriculture/
Articles in this issue
The Cost of Capital of Walmart, Kroger, Albertsons, Costco, and Publix in 2025
Carlos J.O. Trejo-Pech
Cobb–Douglas Production Functions: Bringing Theory and Statistics Together in the Intermediate Micro/Macro Classroom
Mark L. Burkey
Evolving Curriculum to Prepare Students to Solve Problems That Don’t Yet Exist: The Application of Horizon-Scanning
Joe Parcell(a)
Strengthening Macroeconomics Training to Prepare Agribusiness Students for a Changing Economic Landscape
Gulcan Onel, Jennifer Clark, Caleb Stair, Jared Gars, and James Seale Jr.
Avoid Falling from the Enrollment Cliff: Finding Treasures from Rural Areas May Be a Solution for Some Universities
Kuan-Ming Huang and Joshua G. Maples
Skills and Capabilities Needed for Agribusiness Graduates
Ifeloluwa R. Odiase , Aaron J Johnson, W. Scott Downey , and Rodney B. Holcomb
Technical Skills and Their Roles in Agribusiness Supply Chain Management Education
Ryan Loy, Logan L. Britton, and F. Bailey Norwood
Juggling Students and Industry Needs: Redesigning an Academic Agribusiness Program
Serhat Asci, Todd Lone, and Pei Xu
Re-engaging Traditional Students and Attracting New Talent to Agricultural and Applied Economics Curricula and Agribusiness Careers
English Ratliff, Sierra Howry, Kenrett Jefferson Moore, Jerrod Penn, Mohammed Ibrahim, et.al
Designing a Farm and Ranch Management Plan: A Teaching Template
Nicole Karwowski and Beth Shirley
Seven Editions of Pedagogical Innovation: Insights for Developing an Agribusiness Management Curriculum for the Twenty-First Century
Jay Akridge, Freddie L. Barnard, Brady E. Brewer, W. David Downey, John C. Foltz, Trey Malone
A Transdisciplinary Approach to Undergraduate Sustainability Education: Resource Economics by Way of Business and Science
Anna A. Klis and Laura Jackson Young
International Food Safety Regulations in the Almond Industry: Insights, Regulations, and Strategies
Mina Hejazi, Jeta Rudi-Polloshka, Karla Ahumada, and Amanda Lathrop
Simulating Farm-Level Decision-Making in Smallholder Farming: The Green Revolution Game as an Experiential Tool for Teaching Agricultural and Development Economics
Stephen C. Mukembo and Kelly R. Wilson
Simulating Store Management and Competition in Food Retailing
Richard Volpe and Jeremiah Danley
Introducing Concepts Through Games in the Economics Classroom
Anthony R. Delmond, Joey E. Mehlhorn, and R. Shawn Nanney
SideQuest: How a Custom-Built Gamification Platform Can Improve Student Learning and Socialization
Chris Finaret and Jesse Cirimel
Teaching Approaches to Ethical Generative Artificial Intelligence Use in Agricultural Economics Classrooms
Bailey Peterson-Wilhelm, Merri E. Day, Priyanka Sharma, Jiyeon Kim, Lonnie Hobbs Jr.,. et.al
A Commentary on Extension Programming: An Overview of the Extension Program Related to Genetic Selection and Profitability on Dairy Farms
Rebecca L. Weir , Joleen C. Hadrich


