DIW econ Economic Bulletin, No. 3, 2011

Erscheinungsdatum: Oktober 2011

The Power of Retailers

German consumers are known for spending relatively little money on food as compared to other continental European consumers. Over the years, fierce competition among retailers has been an important factor in keeping food prices down. At the same time, however, concentration in the retailing sector has noticeably increased. As research by DIW econ shows, this has gone hand in hand with rising buyer power of retailers on their respective procurement markets. Suppliers, on the other hand, are increasingly loosing negotiating clout in the face of more aggressive demands from retailers. Will the resulting stronger position of retailers eventually lead to higher prices for German consumers?


Keywords:
Innovation, Wettbewerb


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