Vertical market relations in the UK grocery trade: analysis and Government policy
Tóm tắt
The article examines trends in the market power relationship between UK grocery manufacturers and retailers over the past 10‐15 years. It identifies the underlying causes of trends in this area, the implications for consumer welfare, and the legislative framework relating to these relations. Contributory factors to the changed market‐power relationship are relative manufacturer and retailer firm size and market share, individual manufacturing firm market dependence upon particular retailers, information technology, private label merchandise and product development activities, logistics arrangements and other vertical links between manufacturers and retailers. Aspects of welfare economics are examined as a basis for assessing consumer outcomes in this area, and past and present government legislation in the matter is considered, together with some reference to international comparisons. A case is made for some further strengthening of the relevant legislation in the UK.
Từ khóa
Tài liệu tham khảo
Bain, J.S. (1968), Industrial Organization, 2nd ed., Wiley, New York, NY.
Baumol, W.J., Panzar, J.C. and Willig, R.D. (1982), Contestable Markets and the Theory of Industry Structure, Harcourt Brace Jovanovich, New York, NY.
Blois, K.J. (1972), “Vertical quasi‐integration”, Journal of Industrial Economics, Vol. 20 No. 4, pp. 253‐72.
Bowlby, S.R. and Foord, J. (1995), “Relational contracting between UK retailers and manufacturers”, The International Review of Retail, Distribution and Consumer Research, Vol. 5 No. 4, pp. 333‐61.
Channon, D.F. (1978), The Service Industries: Strategy, Structure and Financial Performance, Macmillan, London.
Commission of the European Communities (1997), Green Paper on Vertical Restraints in EC Competition Policy, European Commission, Brussels.
Corstjens, J. and Corstjens, M. (1995), Store Wars: The Battle for Mindspace and Shelfspace, John Wiley, Chichester.
Cronshaw, M., Davis, E. and Kay, J. (1994), “On being stuck in the middle or good food costs less at Sainsbury’s”, British Journal of Management, Vol. 5 No. 1, pp. 19‐32.
Davies, G. J. and Brooks, J. M. (1989), Positioning Strategy in Retailing, Paul Chapman, London.
Davies, K., Gilligan, C.T. and Sutton, C.J. (1985), “Structural changes in the grocery market: the implications for competition”, International Journal of Physical Distribution & Materials Management, Vol. 15 No. 2, pp. 3‐48.
Davies, K, Gilligan, C.T. and Sutton, C.J. (1986), “The development of own label product strategies in grocery and DIY retailing in the United Kingdom”, International Journal of Retailing, Vol. 1 No. 1, pp. 6‐19.
Dawson, J.A. and Shaw, S.A. (1989), “Horizontal competition in retailing and the structure of manufacturer‐retailer relationships”, in Pellegrini, L. and Reddy, S.K. (Eds), Retail and Marketing Channels, Routledge, London.
Dawson, J.A. and Shaw, S.A. (1990), “The changing character of retailer‐supplier relationships”, in Fernie, J. (Ed.), Retail Distribution Management, Kogan Page, London, pp. 19‐39.
Department of Trade and Industry (1988), Review of Restrictive Trade Practices Policy, HMSO, London.
Department of Trade and Industry (1989), Opening Markets: New Policy on Restrictive Trade Practices, HMSO, London.
Department of Trade and Industry (1992), Abuse of Market Power, HMSO, London.
Department of Trade and Industry (1996a), Tackling Cartels and the Abuse of Market Power: A Consultation Document, HMSO, London.
Department of Trade and Industry (1996b), Tackling Cartels and the Abuse of Market Power: A Draft Bill, HMSO, London.
Department of Trade and Industry (1997), A Prohibition Approach to Anti‐Competitive Agreements and Abuse of Dominant Position: Draft Bill, HMSO, London.
Dobson, P.W. and Waterson, M. (1996), Vertical Restraints and Competition Policy, Office of Fair Trading Research Paper 12..
Everton, A.R. (1986), The Legal Control of Buying Power, National Federation of Retail Newsagentset al. London.
Fernie, J. (1990), “Third party or own account ‐ trends in retail distribution”, in Fernie, J. (Ed.), Retail Distribution Management, Kogan Page, London, pp. 91‐105.
Fernie, J. (1994), “Quick response: an international perspective”, International Journal of Physical Distribution & Logistics Management, Vol. 24 No. 6, pp. 38‐46.
Fernie, J. (1995), “International comparisons of supply chain management in grocery retailing”, The Service Industries Journal, Vol. 15 No. 1.
Fiddis, C. (1997), Manufacturer‐Retailer Relationships in the Food and Drink Industry, Financial Times, London.
Financial Times (1985), 25 February, London.
Financial Times(1988), 5 November, London.
Financial Times (1995), 16 November, London.
Financial Times (1996), 16 March, London.
Gaski, J.F. (1984), “The theory of power and conflict in channels of distribution”, Journal of Marketing, Vol. 48 No. 3, pp. 9‐29.
Grant, R.M. (1987), “Manufacturer‐retailer relations: the shifting balance of power”, in Johnson, G. (Ed.), Business Strategy and Retailing, Wiley, Chichester, pp. 43‐58.
Heflebower, R.B. (1956), “Mass distribution: a phase of bilateral oligopoly or of competition?”, American Economic Review, Vol. 46 No. 4, pp. 274‐85.
Hogarth‐Scott, S. and Parkinson, S.T. (1993), “Retailer‐supplier relationships in the food channel”, International Journal of Retail & Distribution Management, Vol. 21 No. 8, pp. 11‐19.
Howe, W.S. (1973a), “The ending of resale price maintenance: implementation of Government policy”, Economics, Summer, pp. 5‐16.
Howe, W. S. (1973b), “Bilateral oligopoly and competition in the UK food trades”, The Business Economist, Vol. 5, pp. 77‐87.
Howe, W.S. (1983), “Competition and performance in food manufacturing”, in Burns, J.et al. (Eds), The Food Industry: Economics and Politics, Heinemann, London, pp. 101‐26.
Howe, W.S. (1990), “UK retailer vertical power, market competition and consumer welfare”, International Journal of Retail & Distribution Management, Vol. 18 No. 2, pp. 16‐25.
Howe, W.S. (1997), “Nations of shopkeepers: the United Kingdom and Germany”, Dortmund Fachhochschule 25th Anniversary Festschrift, Dortmund, pp. 251‐63.
London Economics (1995), The Grocery Retailing Revolution, London Economics, London.
McGoldrick, P.J. (1990), Retail Marketing, McGraw‐Hill, London.
McKinnon, A.C. (1989), Physical Distribution Systems, Routledge, London.
Moir, C. (1990), “Competition in the UK grocery trades”, in Moir, C. and Dawson, J. (Eds), Competition and Markets: Essays in Honour of Margaret Hall, Macmillan, London, pp. 94‐7.
Monopolies and Mergers Commission (1976), Frozen Foodstuffs, HMSO, London, HCP 674.
Monopolies and Mergers Commission (1981), Discounts to Retailers, HMSO, London, HC 311.
Morgan, A.D. (1988), British Imports of Consumer Goods: A Study of Import Penetration 1974‐85, Cambridge University Press, Cambridge.
National Board for Prices and Incomes, Report No. 151 (1970), Bread Prices and Pay in the Baking Industry, HMSO, London, Cmnd. 4428.
National Board for Prices and Incomes, Report No. 165 (1971), Prices, Profits and Costs in Food Distribution, HMSO, London, Cmnd. 5645.
Office of Fair Trading (1985), Competition and Retailing, OFT, London.
Ogbonna, E. and Wilkinson, B. (1996), “Inter‐organizational power relations in the UK grocery industry: contradictions and developments”, International Review of Retail, Distribution and Consumer Research, Vol. 6 No. 4, pp. 395‐414.
Omar, O.E. (1995), “Retail influence on food technology and innovation”, International Journal of Retail & Distribution Management, Vol. 23 No.3, pp. 11‐16.
Pellegrini, L. (1989), “Consumers’ behaviour and producer‐distributor relationships in convenience goods markets”, in Pellegrini, L. and Reddy, S.K. (Eds), Retail and Marketing Channels, Routledge, London.
Pretious, M. (1995), “The development of petrol retailing at Tesco”, unpublished case study, School of Management, University of Abertay, Dundee.
Randall, G. (1994), Trade Marketing Strategies: The Partnership between Manufacturers, Brands and Retailers, 2nd ed., Butterworth/Heinemann, Oxford.
Rees, G. (1969), St Michael: A History of Marks & Spencer, Weidenfeld & Nicolson, London.
Samways, A. (1995), Private Label in Europe: Prospects and Opportunities for FMCG Retailers, Financial Times, London.
Senker, J. (1988), A Taste for Innovation: British Supermarkets’ Influence on Food Manufacturers, Horton Publishing, Bradford.
Sieff, M. (1990), Management the Marks & Spencer Way, Weidenfeld & Nicolson, London.
Smith, A.D. and Hitchens, D.M.W.N. (1985), Productivity in the Distributive Trades: A Comparison of Britain, America and Germany, Cambridge University Press, Cambridge.
Sunday Times, (1984), 5 February, London.
van Musschenbroek, K. (1970), “Developments in the food manufacturing and distributive industries”, Journal of Agricultural Economics, Vol. 21 No. 4, pp. 435‐6.
Wrigley, N. (1994), “After the store wars: towards a new era of competition in UK food retailing?”, Journal of Retail and Consumer Services, Vol. 1 No. 1, pp. 5‐20.
Wrigley, N. and Lowe, M. (Eds) (1996), Retailing, Consumption and Capital, Longman, Harlow.