Supermarkets and food consumption patterns: The case of small towns in Kenya

This paper investigates the effect of supermarkets on food consumption patterns in urban Kenya using cross-sectional household survey data collected in 2012. To establish causality, we selected study sites that differ in their supermarket access, and employ instrumental variable techniques to allow for endogeneity of supermarket purchases. We find that supermarket purchases increase the consumption of processed foods at the expense of unprocessed foods. Supermarket purchases increase per capita calorie availability, which is linked to lower prices paid per calorie, particularly for processed foods. Our results imply that supermarkets contribute to dietary changes commonly associated with the nutrition transition. The effects on nutrient adequacy are less clear.