Inter-organizational power relations in the UK grocery Industry: contradictions and developments

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Abstract
Drawing upon theories of power and based on our research into and knowledge of the UK grocery sector, this paper analyses developments in the relationship between grocery manufactures and retailers. As is well documented in the literature, industry concentration, new channels of physical goods distribution, the rise of own-label products and new information systems have contributed to a real and perceived heightening of the dependence of manufacturers on a handful of major retailers such that retailer relations with grocery suppliers have shifted from dependence towards dominance. However, the picture we present is more complex: first because relations between suppliers and buyers are differentiated; second because of legitimatory processes which give rise to ambiguity.