Buyer power and competition in European food retailing

Book abstract:

Size matters - and it matters most in food retailing where the impact of globalisation is felt daily in the shopping trolley. This book explores the effects of the recent growth in concentration in the European food retailing sector.

Organised in three parts, Part I explores the theoretical and policy underpinnings, covering such aspects as the economic theory of buying power, addressing some buyer power propositions and moving on to definitions and measures of buyer power with brief commentary on competition policy and law towards buyer power. Moving from theory to statistical analysis Part II presents a study of food retailing across the European Union and prepares the way for the case studies presented in Part III. The statistical analysis progresses towards construction of an entirely new database designed to yield an integrated, and internally consistent, statistical mapping of the structure of the sector at both the aggregate EU and national levels, for the leading firms therein. France, Germany, Spain and the United Kingdom are the four countries from which the case histories of Part III are taken. These examine the characteristics and evolution of market structure, competition in food retailing, retailer and buying group power, own label development, and many other special market features. Conclusions drawn from these four studies, both in terms of cross-country comparisons and product comparisons, are presented in summary chapter 12.

The overall conclusions drawn from the three parts are provided in chapter 13 and comment upon the state of competition and the extent the effects of buyer power in the food retail distribution sector of the European Union.

The work will interest students, scholars, policy researchers and makers, lawyers and practitioners in European competition issues.

Roger Clarke is Professor of Economics at Cardiff University. Stephen Davies is Professor of Economics at the University of East Anglia. Paul Dobson is Professor of Retail Strategy and Industrial Organisation at Loughborough University. Michael Waterson is Professor of Economics at Warwick University, UK.