Supermarket Power

1175 WordsFeb 3, 20135 Pages
THE NATURE OF SUPERMARKET POWER ON THE HIGH STREET AND BEYOND INTRODUCTION In this essay I will be outlining the nature of supermarket power and how it affects competing retailers and the impact this has on us as consumers. I will do this by drawing heavily on the learning materials provided to underpin the factors involved. WHAT IS SUPERMARKET POWER? It is useful to describe what is meant by the term supermarket power. In the last twenty years, supermarkets have played a pivotal role in redefining our shopping habits. This is due to many factors like convenience, freedom of choice and value for money but it is also down to the economic domination of supermarkets themselves. The big 4 (Asdas, Morrisons, Tesco and Sainsburys) control…show more content…
this can mean that the effect of this consumer saving are enjoyed at the expense of others, with the manufacturers and suppliers taking the hit. This once again brings up the notion of the buying power of the supermarkets creating disparity and using their influence to establish their dominance on the market. THE PRO SUPERMARKET ARGUMENT Consumers want value for money, and who can blame them? This is surely a pre requisite in our economic climate.' The pro-supermarket lobby states that supermarkets use, not abuse, their economic size for the benefit of communities and consumers, suppliers and workers, alike'.(Allen, 2009, p69) While this claim is valid, it is important to remember that there may be a degree of corporate spin involved here. It is obvious that large supermarket new builds provide vital social and economic regeneration in areas that have experienced unemployment . It is also fair to say due to these large retailers market power, the consumer is in a stronger position, with access to a wider range of products at lower prices. (Allen,2009).This arguably eludes to a positive- sum game scenario as a result of these factors. CONCLUSION It is difficult to see how a balance can be achieved and a sense of parity for the local shops and high street stores maintained, within the last few years we have seen many established retailers go into administration. These were sizable

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