Authors: Andrew Hollingsworth; Martin Hingley
Under instruction from the OFT (Competition Commission, 1999), the Competition Commission’s report into UK supermarkets published in October 2000 received, rather predictably, a mixed response from the various participants in the food supply chain. Although it found little evidence of monopolistic behaviour, the findings indicated both the significance of buyer concentration and the need for voluntary regulation (Competition Commission, 2000). Recent evidence and further changes to the industry structure suggests that not only will buyer power continue to concentrate in the hands of the major retail players, but further concentration and consolidation in the food retail sector will take place both within and beyond the home market. The relative buyer power of supermarkets has been increasing and this is likely to continue with further consolidation as a result of the impending Safeway merger. From initial research, it would appear that many manufacturers and suppliers remain unconvinced that the code will offer significant improvements in the suppliers? trading position. Further empirical research is needed to establish specifically the impact of the Code on suppliers and manufacturers alike.
Journal: ( – )
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Publish Year: 2003
Conference: Lugano, Switzerland (2003)