Grocery retailing in Germany : situation, development and pricing strategies

Over the last four decades, the German food-retailing sector has been subject to continuous structural change. Most important has been the combination of increasing concentration with rising store size and the growing role of discounters implementing an aggressive EDLP pricing strategy. Thus, consumers have benefited from intensive price competition, despite the higher market share of leading food retailers. The analysis of market conduct, in terms of price formation and pricing strategies, reveals a typical situation of imperfect competition. The law of one price certainly does not hold for individual foods. Price levels and pricing strategies diverge substantially across firms and store types. There are successful retailers with an EDLP strategy, as well as others with a HiLo strategy. A major lesson to be learned from the German experience is that increasing concentration in food retailing does not necessarily imply that more market power is exerted at the expense of consumers. Competitive markets are compatible with a high level of concentration as long as a strong competitive fringe, for example discounters, challenges the large chains in food retailing

Grocery retailing in Germany: Situation, development and pricing strategies

Like many other industrialised countries Germany has experienced a powerful concentration process in food retailing. There are some issues, however, which make Germany a special case in Europe and among industrialised countries in general. This holds true in terms of market structure and concentration, market development and pricing strategies. The market share of hard discounters like Aldi and Lidl has grown continuously in recent decades and the market share of discounters in general has reached a magnitude that is well above that found in other European countries. This has led to robust price competition in German food retailing. Along with this development, it has been very difficult for inward foreign direct investment (FDI) to gain ground in the German food retailing industry. One example was the market entry by Wal-Mart which, given its initial ambitious goals, was not successful. On the other hand, German hard discounters have strongly affected outward FDI by other German food retailers. In the process of expanding into other markets abroad, these companies have had a positive impact on exporting by the German food industry. This article describes and analyses these major trends in German food retailing in detail. It is organised as follows. The structure of food retailing is described and explained in Section 2. Section 3 deals with the importance of inward and outward FDI in German food retailing. It is discussed in both sections how increased concentration in food retailing affects the marketing chain. Price competition is intense in Germany, and studies of food pricing strategies have used scanner data. Therefore a special case study in Section 4 is the analysis of food pricing strategies in Germany based on scanner-data evidence. The analysis shows that the pricing behaviour of food retailers is characterised by the every-day-low-pricing (EDLP) strategies of discounters and the high-lowpricing (HiLo) strategies of their major competitors. The main elements of pricing policies are indicative of firms' market power: repeated price discounts for major food brands, frequent changes of loss leaders, the dominant role of psychological pricing, and a strong price rigidity for all other foods which are not on special offer. --

Grocery retailing in Poland: Structural changes and foreign direct investment

The development of the Polish food retailing sector is very interesting. With the transition from a socialist to a market economy, structural change in the retailing sector has been especially rapid and the new open markets in Poland have attracted foreign investors throughout the economy in general and in the foodretailing sector in particular. This article describes and analyses the major trends in Polish food retailing. It is organised as follows. The structure of food retailing is described and explained in Section 2, first at the store-type level and then at the firm level. How the powerful concentration process in food retailing has affected the marketing chain is also discussed. Inward foreign direct investment (FDI) in Polish food retailing is covered in Section 3. Given the special importance of FDI in the Polish economy during the transition process, an analysis is carried out of the determinants of FDI in retailing within a cross-country dataset and with a particularly detailed look at FDI in Poland. The results are summarised in Section 5. --

Organochlorine pesticides residues and PCBs in benthic organisms of the inner shelf of the São Sebastião Channel, São Paulo, Brazil

Trinta e sete amostras de bentos da área interna do Canal de São Sebastião, Brasil, foram coletadas entre Abril de 1994 e Agosto de 1998 e analisadas quanto aos níveis de resíduos de 17 pesticidas organoclorados os congêneres dos PCBs. Os níveis de resíduos de organoclorados e PCBs foram baixos( ng/g) e encontrados com maior freqüência nas amostras de crustáceos. DDE foi o resíduo de pesticida encontrado com mais freqüência apresentado um máximo de 9,7 ng/g seguido dos isômeros de HCHs com um máximo de 17,1 ng/g. No caso dos PCBs os congêneres mais pesados foram os predominantes: CB 138, 153, 170, 180 e 183. O valor máximo de PCBs totais foi de 17,4 ug/g numa amostra de crustáceo. Níveis maiores de PCBs estão associados aos hábitos alimentares e introduções pontuais de esgotos e água de drenagem urbana. Apesar dos níveis observados estarem abaixo dos recomendados para consumo humano pela EPA e da FDA( U.S.A) ,eles demonstram que mesmo em área marinhas costeiras sem agricultura intensiva ou atividades industriais de porte , estes compostos orgânicos persistentes sintéticos ( POPS) estão presentes em níveis mensuráveis.Thirty seven benthic samples of the inner shelf area of São Sebastião, Brazil, were collected between April 1994 and August 1998 and analysed for seventeen chlorinated pesticide residues and PCBs congeners. Pesticide residues and PCBs congeners levels were low (ng/g) and predominantly found in the crustacean samples. DDE was the most frequently residue with a maximum of 9,7 ng/g followed by HCHs with maximum of 17,1ng/g. As for the PCBs, the heavier congeners predominate: CB 138,153,170, 180 and 183. Maximum total PCBs was 17,4 ug/g in a crab sample. Higher levels of PCBs are related to feeding habits and local inputs of raw sewage or land runoff. Although EPA and FDA (U.S.A) below the guidelines for human consumption propose these levels, they do show that even in marine areas without intense agricultural or industrial activities these compounds are present at detectable levels

Prvo priopćenje o vrsti Puccinia distincta McAlpine, novoj europskoj hrđi na tratinčicama (Bellis perennis L.) iz Hrvatske

Severe rust infections on wild and cultivated daisies (Bellis perennis L.) were found in April and May 2000 in an isolated coastal location of Croatia between Lovran and Opatija. The pathogen was identified as Puccinia distincta McAlpine which has been spreading rapidly across Europe for the past four years and may be of Australian origin. In the current paper, we describe the diagnostic features of P. distincta using Croatian material, and suggest spraying with myclobutanil-containing fungicides to protect ornamental daisies in flowerbeds. Without such treatments, it may no longer be possible to grow daisies in areas affected by P. distincta.Teška infekcija hrđe na divljim i uzgajanim tratinčicama (Bellis perennis L.) otkrivena je u travnju i svibnju 2000. na izoliranom priobalnom području izme|u Lovrana i Opatije. Patogena gljiva bila je determinirana kao Puccinia distincta McAlpine, koja se protekle četiri godine brzo širi po Europi, a možda dolazi iz Australije. U ovom prikazu opisujemo dijagnostičke značajke gljive P. distincta primjenjujući materijal iz Hrvatske i predlažemo prskanje fungicidima na osnovi miklobutanila kako bismo zaštitili dekorativne tratinčice u cvjetnim nasadima. Bez takvih tretmana postoji mogućnost da na područjima zaraženim s P. distincta više neće biti moguć njihov uzgoj