Effects of development and increasing power of retail chains on the position of consumers in marketing channels

Abstract

The end of the last century and the beginning of this one are marked by intensive processes of retail markets concentration worldwide. One might say that a kind of retail revolution is underway, primarily characterized by an intensive development of retail chains and by increase of their power in the marketing channels. Parallel to their overwhelming development, big retail chains assume key role in designing and managing marketing channels. In this manner, they immensely change position and interrelations among the members of channels, but also design one new reality for consumers' position on the market. The essential question is whether the development of big retail chains is in real favor of consumers or not. In that sense, the fear of development of big retail chains which rapidly change familiar picture of retail and old position of consumers is constantly present in the initial phase of the modern retail market development.