![]() ![]() This, in turn, makes it difficult for South Africa to advance its black industrialists policy. These make it difficult for entrepreneurs, particularly historically disadvantaged individuals, to meaningfully participate in this space. The high levels of concentration are indicative of the barriers to entry and expansion faced by new entrants. ![]() This limits the alternative options that suppliers and consumers have, and confers substantial market power to the major supermarket chains. Only a handful of large chains hold over 70% of the national market share. South Africa’s concentrated formal supermarket industry poses a challenge on this front. For suppliers, it affects their participation as supermarkets are an important route to market for many producers and manufacturers of food and household consumable products. For consumers, competition between supermarkets affects pricing, quality, access and choice of products and services. The article draws from studies that look at the spread of supermarkets in southern Africa and how the market power of large firms in different sectors can hold back economic development.Įffective competition in the supermarket industry is important because it has far-reaching implications for consumers and suppliers. This article is part of a series of studies titled “Barriers to entry” and “The expansion of regional supermarket chains”. ![]()
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