Has Power Shifted in the Grocery Channel?

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Abstract
Retailers have not gained profitability at the expense of manufacturers in the last two decades, according to accounting and stock market measures of profits, despite substantial industry restructuring and new forms of channel rivalry. Both manufacturers and retailers have experienced reductions in profitability. Consumers may be the net beneficiaries these and other changes. In this study we survey the recent evolution of the grocery channel, examine the connections between changes in channel structure, conduct, and performance, and assess whether profitability has shifted as a result. We relate these findings to the issue of whether power has shifted in the grocery channel.

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