The rapid growth of supermarkets in developing countries has raised concern that small farmers may be squeezed out of urban markets by the quality standards and other requirements of supermarkets. This study explores these issues using data from a stratified random survey of 1180 urban households in Indonesia. The results suggest that 73% of urban households use modern food retailers, but these retailers account for just 19% of food expenditure. Econometric analysis indicates that the use of modern food retailers is associated with higher income, higher education, and ownership of a refrigerator and motorbike. The impact of supermarkets on fresh vegetable growers is likely to be minimal because 98% of urban vegetables are still purchased at traditional retailers. Projections based on the current relationship between income and shopping patterns suggests that traditional retailers will continue to play an important role in fresh produce marketing for the foreseeable future.