The Structure of São Paulo Street Markets: Evolving Patterns of Retail Institutions

Development in emerging economies leads to a cohabitation of traditional and modern forms of retailing. This diversity allows for centuries' old consumer behavior patterns to continue along with new options. The street markets or Feira Livres [1] of S[tilde{a}]o Paulo, Brazil demonstrate how consumption patterns are culturally determined. Participant observation, both in supermarkets and at feiras, and interviews with consumers and vendors are used to investigate consumer shopping patterns, along with evolving patterns of retail structure. We find that informal markets, such as the feira, are able to coexist with modern, Western-style retail institutions, partly because of ingrained food preparation habits and deep-seated consumer impressions about superior qualities offered by feiras (e.g., the perceived freshness of the produce). Our findings support the Natural Selection Theory of retail development in that we find evidence of adaptation. Specifically, the supermarkets in Brazil have evolved to include dep artments that imitate some of the popular characteristics of the feiras. While cultural and socia-economic differences exist geographically, consumers participate in a global economy daily. A wide array of retail options fulfill consumers' basic needs for food, clothing, and housewares while simultaneously providing an environment for social exchange and entertainment. The development of Western retail institutions parallels the evolution of post-industrial society and the rising economic importance of the services sector. Exchange patterns have evolved into relationships between targeted consumers and all forms of intermediaries (e.g., specialty retailers, direct sellers, and catalog companies). With the emerging importance of electronic commerce and satellite communication, the development of an international retail market seems to be a possibility. The rise of a consumption culture supported by the proliferation of retail outlets and formats has come to represent not only increased spending but also the transformation of the consumption activity itself (Gardner and Sheppard 19 89). It is possible that a convergence in worldwide consumption patterns will take place. Convenience stores, shopping centers, and supermarkets stand as symbols of modern consumption, and the diffusion of their associated Western consumer values has transformed both consumer behavior and traditional retail environments in developing countries. However, consumption patterns do not evolve in a uniform manner around the globe. The adoption of Western-style retail institutions is integrated with preexisting patterns of retailing and consumer behavior. The result is a hybrid form of traditional and postmodern retailing. That is, retail environments in developing countries are characterized by a variety of retail institutions rather than one single representation of Western-style stores (Paddison, Findlay, and Dawson 1990). Other recent studies have examined cultural characteristics of food shopping in First World nations (e.g., Brookes 1995; Brunso and Grunert 1998). Here, we study the feira (or street market) as an enculturated form of retailing specific to Brazil. Brazil is one of the largest countries in the world, in area and by population, with an inflationary and unstable economy that has led to uneven development efforts. The retail environment in this developing nation has accommodated this growth. In turn, Brazilians have coped with spiraling inflation by adjusting their shopping and spending patterns. RESEARCH OBJECTIVES This paper investigates the feira and explores culture-specific aspects of consumption. Related research questions include the following: Why do people continue to shop at the feira when they have newer options? What is the cultural/social/economic appeal of the feira? What characteristics of the feira make it preferable to other retail establishments, such as supermarkets? …