Texas supermarket chain shows large market share doesn't mean higher prices

With Roundy's buying seven Kohl's in the Milwaukee area, there is concern that Roundy's dominance of that market could lead to higher prices. But consumers stayed happy when a similar situation happened at H.E. Butt Grocery in San Antonio. One possible reason for this is the so-called "Wal-Mart effect," meaning that the presence of Wal-Mart Supercenters forces grocery stores to keep their prices low in order to compete.

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