The Expansion of Regional Supermarket Chains: Implications on Suppliers in Botswana and South Africa

CCRED Working Paper No. 2017/3

WIDER Working Paper 2017/26

51 Pages Posted: 24 Feb 2017 Last revised: 3 Mar 2017

See all articles by Reena Das Nair

Reena Das Nair

Centre for Competition, Regulation & Economic Development (CCRED)

Shingie Dube

Centre for Competition, Regulation & Economic Development (CCRED)

Date Written: February 1, 2017

Abstract

This paper explores the effect of the spread of supermarkets on the participation of suppliers in supermarket value chains in Botswana and South Africa. Using secondary data and in-depth interviews with key players in the value chain, the paper evaluates the buyer power of supermarkets evidenced in the negotiation of trading terms. It further assesses the capabilities and investments required by suppliers to access shelf space and remain competitive. Finally, the paper looks at the role of supermarkets and governments in developing local supplier capabilities and the importance of harmonizing policies across borders.

Keywords: supermarkets, suppliers, regional value chains, buyer power, strategy, capabilities

JEL Classification: L1, L2, L22, O1

Suggested Citation

Das Nair, Reena and Dube, Shingie, The Expansion of Regional Supermarket Chains: Implications on Suppliers in Botswana and South Africa (February 1, 2017). CCRED Working Paper No. 2017/3, WIDER Working Paper 2017/26, Available at SSRN: https://ssrn.com/abstract=2923065 or http://dx.doi.org/10.2139/ssrn.2923065

Reena Das Nair (Contact Author)

Centre for Competition, Regulation & Economic Development (CCRED) ( email )

5 Sturdee Ave
Johannesburg, GP, 2196
South Africa

Shingie Dube

Centre for Competition, Regulation & Economic Development (CCRED) ( email )

5 Sturdee Ave
Johannesburg, GP, 2196
South Africa

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
158
Abstract Views
811
rank
221,428
PlumX Metrics