Article metrics

  • citations in SCindeks: 0
  • citations in CrossRef:0
  • citations in Google Scholar:[=>]
  • visits in previous 30 days:8
  • full-text downloads in 30 days:2
article: 3 from 3  
Back back to result list
Industrija
2018, vol. 46, iss. 3, pp. 145-161
article language: English
document type: Original Scientific Paper
published on: 22/11/2018
doi: 10.5937/industrija46-17337
Creative Commons License 4.0
Impact of retail market concentration on differences in retailers' productivity and business results
aUniversity of Novi Sad, Faculty of Economy, Subotica
bBusiness School, Novi Sad

e-mail: radenko.maric@ef.uns.ac.rs

Abstract

The aim of this paper is to define the degree of the Serbian retail market concentration and to determine the nature of the correlation between market concentration and retailers' business performances. The main task of the research is to indicate how changes in market share affect the development of the retail sector. Based on financial indicators in retail, realized turnover and profit per employee, the null research hypothesis was tested for proving a significant correlation between the size of market share of retail chains and their productivity and business results. The obtained results show the level of deviation in terms of the differences between the size of market share and productivity and the business result. There is also an obvious increase in the market share of large retail chains which has led to a decrease in the total number of small independent retailers, as well as a rise in market concentration levels. The obtained results, the conducted analyses and tests will point to the potential dangers of the concentration of the national market and define the criteria for achieving a higher degree of homogeneity. Suggestions and guidelines for future research are presented in the paper.

Keywords

References

Aalto-Setälä, V. (2002) The effect of concentration and market power on food prices: evidence from Finland. Journal of Retailing, 78(3): 207-216
Allain, M., Chambolle, C., Turolla, S., Villas-Boas, S.B. (2017) Retail Mergers and Food Prices: Evidence from France. Journal of Industrial Economics, 65(3): 469-509
Argentesi, E., Buccirossi, P., Cervone, R., Duso, T., Marrazzo, A. (2016) The effect of retail mergers on variety: An ex-post evaluation. Technical report. Bologna: University of Bologna
Bhattacharya, K. (2003) How good is the bank scope database? A cross validation exercise with correction factors for market concentration measures. BIS Working, br. 133
Díez-Vial, I. (2007) Explaining Vertical Integration Strategies: Market Power, Transactional Attributes and Capabilities. Journal of Management Studies, 44(6): 1017-1040
Drašković, B., Domazet, I. (2008) Koncentracija tržišne moći kao izraz nesavršenosti tržišta. in: Tržišne strukture i zaštita konkurencije, Beograd: Institut ekonomskih nauka, 45-83
Fuchs, D., Kalfagianni, A., Arentsen, M. (2009) Retail Power, Private Standards, and Sustainability in the Global Food System. in: Clapp, Jennifer; Fuchs, Doris [ed.] Corporate Power in Global Agrifood Governance, MIT Press - Journals, str. 28-59
Gaudin, G. (2016) Pass-through, vertical contracts, and bargains. Economics Letters, 139: 1-4
Ghemawat, P. (2006) Global integration != global concentration. Industrial and Corporate Change, 15(4): 595-623
Goodman, C., Kachur, S., Abdulla, S., Bloland, P., Mills, A. (2009) Concentration and drug prices in the retail market for malaria treatment in rural Tanzania. Health Economics, 18(6): 727-742
Hastings, J.S., Gilbert, R.J. (2005) MARKET POWER, VERTICAL INTEGRATION AND THE WHOLESALE PRICE OF GASOLINE*. Journal of Industrial Economics, 53(4): 469-492
Hovhannisyan, V., Bozic, M. (2016) The effects of retail concentration on retail dairy product prices in the United States. Journal of Dairy Science, 99(6): 4928-4938
Inderst, R., Valletti, T.M. (2011) Buyer power and the ‘waterbed effect. Journal of Industrial Economics, 59(1): 1-20
Končar, J., Leković, S. (2013) Trendovi modernizacije i strukturne transformacije trgovine u funkciji održivog razvoja # Trends of modernization and structural transformation of trade as a function of sustainable development. Anali Ekonomskog fakulteta u Subotici, br. 29, str. 407-419
Lovreta, S., Berman, B., Petković, G., Veljković, S., Crnković, J., Bogetić, Z. (2010) Customer Realationship Management. Beograd: Ekonomski fakultet u Beogradu, Data Status
Lovreta, S., Končar, J., Petković, G. (2009) Kanali marketinga. Beograd: Ekonomski fakultet u Beogradu - Centar za izdavačku delatnost
Lovreta, S., ur. (2009) Strategija razvoja trgovine republike Srbije. Beograd: Ekonomski fakultet u Beogradu
Lukić, R. (2010) Analiza profitabilnosti trgovine u Srbiji. Škola biznisa, 15-23; 4
Panagiotou, G. (2006) The impact of managerial cognitions on the structure‐conduct‐performance (SCP) paradigm. Management Decision, 44(3): 423-441
Pecotić-Kaufman, J., Slijepčević, S. (2010) Koncentracije poduzetnika i merodavno tržište - pravni i ekonomski aspekti. Zbornik Pravnog fakulteta u Zagrebu, 5, 995
Pešić, S. (2015) Koncentracija u trgovini na malo kao determinanta profitabilnosti maloprodajnih preduzeća. Beograd: Ekonomski fakultet, PhD Thesys
Petković, G., Lovreta, S., Pindžo, R., Pešić, S. (2016) Evaluating the concentration in Serbian tourism and FMCG retail sector. Ekonomika preduzeća, vol. 64, br. 1-2, str. 187-198
Rickert, D., Schain, J.P., Stiebale, J. (2018) Local market structure and consumer prices: Evidence from a retail merger. DICE Discussion Paper, 1-47; 280; http://hdl.handle.net/10419/173247
Statistical office of the Republic of Serbia (2007) Statistical Yearbook
Stojanović, B., Stanišić, T., Veličković, M. (2010) Problem zaštite konkurencije u trgovini na malo u Srbiji. Škola biznisa, 57-66; 3
Sunay, Z.F., Erkan, B. (2018) Russia s market and product-based export diversification. Journal of Life Economics, 5(3): 43-60
Tansey, M., Raju, S. (2017) Pricing, concentration & public policy: The U.S. automobile market. Journal of Policy Modeling, 39(5): 762-774
Usova, N.V. (2017) Identification of consumer development trends in a major city: a market-based approach. R-economy, 3(1): 50-58
Weyl, E., Fabinger, M. (2013) Pass-Through as an Economic Tool: Principles of Incidence under Imperfect Competition. Journal of Political Economy, 121(3): 528-583