RETAILER‐SUPPLIER RELATIONSHIPS IN THE FOOD CHANNEL: A SUPPLIER PERSPECTIVE

Abstract

Changes in the European retailing marketplace are having an impact on relationships between retailers and their suppliers. Concentration of sales to fewer, larger and more powerful retailers, the growth of own label brands, and the operational and marketing benefits of retailer information technology, all affect the relationship between retailers and their suppliers. These trends are seen at their most extreme in the UK market, which is seen by many as a model for the future of the rest of Europe. In this emerging trading environment, the issues of collaboration versus conflict, documented in research in retailing since the 1950s, take on a particular focus and importance. Looks at these issues from the perspective of 11 manufacturers, each of which deals with the same significant retailer in the UK. Examines the relevance of the constructs of power, conflict and co‐operation in the UK food channel from the supplier′s perspective; the manufacturer′s response to powerful buyers in the channel; and the impact of information technology on channel relationships. Concludes with recommendations to manufacturers on managing key accounts in the new environment.