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Prior research shows grocery stores reduce prices to compete with Walmart Supercenters. This study finds evidence that the competitive effects of two other big box retailers -Costco and Walmart-owned Sam's Club -are quite different. Using city-level panel grocery price data matched with a unique data set on Walmart and warehouse club locations, we find that Costco entry is associated with higher grocery prices at incumbent retailers, and that the effect is strongest in cities with small populations and high grocery store densities. This is consistent with incumbents competing with Costco along non-price dimensions such as product quality or quality of the shopping experience. We find no evidence that Sam's Club entry affects grocery stores' prices, consistent with Sam's Club's focus on small businesses instead of consumers.

Wal-Mart, Social capital, Community, Retail, A10, A13, D00, Z1,

This paper examines the effect that Walmart Supercenters, which lower food prices and expand food availability, have on food insecurity. Data come from the 2001-2012 Current Population Survey Food Security Supplements matched to Walmart Supercenter entry dates and locations. Using instrumental variables models that leverage Walmart's predictable expansion pattern outward from corporate headquarters, we find that closer proximity to a Walmart Supercenter improves household and child food security, as measured by affirmative responses to a food insecurity questionnaire and an indicator for food insecurity. The effects are largest among lowincome households and children but are also sizeable for middle-income children.