Market Structure, Growth and Competition in the Supermarket Sector in Latin America

25 Pages Posted: 15 Sep 2015

See all articles by Juan Delgado

Juan Delgado

GAMES Economics; Universidad Carlos III de Madrid - Economics Dpt.

Date Written: September 3, 2015

Abstract

Supermarkets play a limited but increasingly important role in Latin-America groceries retail markets. Traditional grocery retailers still play a substantial role in most Latin American countries and the penetration of supermarkets is still behind the developed countries. Paradoxically, within the supermarkets sector, concentration is high and a small number of large players are present in several countries. As personal income increases, the size of the middle class grows and the logistics and transport infrastructure develops, supermarkets are expected to expand further becoming the main gatekeeper for most grocery products. As supermarkets penetration increases, there is generally a process of transfer of market power from manufacturers and producers to retailers. In Latin America, producers and manufacturers still have substantial market power (and, consequently, bargaining power) in several product markets. However, recent cases and commercial practices show that such bargaining power is eroding in favour of large supermarket chains, changing the competitive dynamics of retail markets.

Keywords: Supermarkets, competition, antitrust, regulation, retailing, Latin America, emerging markets

JEL Classification: L11, L38, L4, L81, K21, O54

Suggested Citation

Delgado, Juan, Market Structure, Growth and Competition in the Supermarket Sector in Latin America (September 3, 2015). Available at SSRN: https://ssrn.com/abstract=2660118 or http://dx.doi.org/10.2139/ssrn.2660118

Juan Delgado (Contact Author)

GAMES Economics ( email )

Calle Manzana 7
Madrid, 28015
Spain

HOME PAGE: http://https://gamesecon.com/juan-delgado/

Universidad Carlos III de Madrid - Economics Dpt. ( email )

CL. de Madrid 126
Madrid, Madrid 28903
Spain

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