The Rapid Rise of Supermarkets in Central and Eastern Europe: Implications for the Agrifood Sector and Rural Development

32 Pages Posted: 7 Sep 2004

See all articles by Liesbeth Dries

Liesbeth Dries

KU Leuven - Faculty of Business and Economics (FEB)

Thomas Reardon

Michigan State University - Department of Agricultural Economics

Johan F. M. Swinnen

KU Leuven - Centre for Institutions and Economic Performance (LICOS); European Commission, DG II

Abstract

During the 1990s transition period in Central and Eastern Europe, the retail sector was privatised and some domestic-capital supermarket chains gradually emerged. Massive inflows of foreign direct investment followed and competitive domestic investments drove a rapid take-off of large-format modern retail sector development from a tiny 'luxury' niche of around 5% of food retail in the mid-1990s to 40-50% by 2003 in 'firstwave' and 20-40% in 'second-wave' countries. In 'third-wave' countries like Russia, it is still only 10% but growing very fast. In most countries there is rapid multi-nationalisation and consolidation of the supermarket sector, with profound changes in procurement systems affecting the conditions facing farmers, and creating important opportunities and challenges.

Suggested Citation

Dries, Liesbeth and Reardon, Thomas A. and Swinnen, Johan F.M., The Rapid Rise of Supermarkets in Central and Eastern Europe: Implications for the Agrifood Sector and Rural Development. Available at SSRN: https://ssrn.com/abstract=584046

Liesbeth Dries

KU Leuven - Faculty of Business and Economics (FEB) ( email )

Huis De Dorlodot
DeBeriotstraat 34
B-3000 Leuven
Belgium
+32(0)16/32.65.53 (Phone)
+32(0)16/32.65.99 (Fax)

Thomas A. Reardon (Contact Author)

Michigan State University - Department of Agricultural Economics ( email )

East Lansing, MI 48824
United States
517-355-1521 (Phone)
517-432-1800 (Fax)

Johan F.M. Swinnen

KU Leuven - Centre for Institutions and Economic Performance (LICOS) ( email )

Waaistraat 6
Leuven, B-3000
Belgium

European Commission, DG II ( email )

Wetstrath 200
Office 15172
1049 Brussels
Belgium
+32-2-2960442 (Phone)
Not available (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
19
Abstract Views
1,774
PlumX Metrics