LARGE RETAIL CHAINS, RETAIL DENSITY AND SUPPLY CHAINS

Abstract

This paper was induced by the fact that in present-day conditions mutualcompetition is provided by entire supply chains and not merely by particularcompanies/groups. Therefore the importance of retail should be considered not onlyaccording to its shares in the number of companies, in the number of employees, increating additional value, and the like, but also in respect of its role in supply chains.Namely, successful supply chains are created, primarily, by large retail companieswith their large stores. Based on available literature, the author first analyses the retailas part of distributive trade, in concentration processes in the economy, in verticalmarketing systems and in supply. Available secondary sources are used for theanalysis of selected European countries: greatest retailers and their importance, roleof wholesale distribution, and density and development level of retail sale. Datacollected from Eurostat and Deloitte are analysed and graphically presented by meansof usual statistical methods (relative numbers, indexes and shares, tables and graphs).The results of the conducted research should confirm the thesis about theimportance of the density and development of retail, relations between wholesale andretail companies, and shares of large retail companies / groups in the creation ofmodern supply chains as prerequisite for successful expansion into new markets.Therefore, regarding the possibilities for the development of supply chains, retail saleis not of the same importance in some of the observed countries.

Key words: retail trade, retail concentration, supply chain, economic development,European countries