Scale, scope, and specialization effects on retailers’ procurement strategies: evidence from the fresh produce markets of São Paulo

Abstract

Resumo: Ao redor do globo, a emergência de grandes cadeias de supermercado em mercados alimentícios de varejo é frequentemente associada à marginalização de varejistas menores. Uma notável exceção existe Classificaçao JEL: L22Abstract: Worldwide, the emergence of large supermarket chains in food retail markets is often associated with the marginalization of smaller retailers. A notable exception exists in Brazil, however, where small retailers have held their place in the market and recently even gained ground. The literature investigating how retail concentration has affected agrifood chains has focused activities of the largest retail chains, implicitly holding the scale, scope and specialization of retailers' input needs constant, and overlooking the influence of these factors on retailers' procurement strategies. This paper tests hypotheses regarding these variables' effects on retailers' fresh produce procurement strategies. Data is drawn from a survey of retailers in metropolitan São Paulo. The research results provide insight into factors underlying retailers' procurement strategy choices and tradeoffs among options. The results support the fundamental hypothesis of the paper that research on the competitive strategies of smaller retailers in a context of market domination by large retailers should not focus exclusively on the degree to which the smaller retailers imitate the larger retailers rather it should account for the possibility that the underlying characteristics of the retailers may make diverse competitive strategies appropriate.

As transações entre varejistas e fornecedores de frutas, legumes e verduras na cidade de São Paulo

“…De maneira geral, o varejo de produtos frescos na cidade de São Paulo pode ser classificado em três tipos: as grandes e modernas redes de supermercado e hipermercados com grande escala de vendas de FLV; o segundo grupo, constituído por pequenas e médias redes de supermercado que se caracterizam como firmas independentes e pequenas redes; e o terceiro tipo, formado por lojas especializadas com forte foco na venda de perecíveis, ou exclusivamente na venda de produtos frescos REARDON;FARINA, 2008).…”

Emerging food retailers and the development of hybrid food retail institutions in Ugandan produce supply chains

“…Following this definition, procurement strategies are conceptualized as the rules and agreements between retailers and suppliers regarding acceptable quality standards and the mechanisms for managing relationships, structuring and guiding everyday interactions. They are approaches to sourcing and transforming produce into final products for consumers, reflecting a consistent plan of action in sourcing produce, establishing and maintaining relationships with suppliers, and communication of produce standards (Mainville, Reardon, and Farina 2007). As practices which govern relationships they can vary in their degree of formality ranging from written contracts or equally binding informal agreements to ad hoc interactions.…”