The grocery price war: CRISIS OR PROGRESS?

Abstract

Is the price war in grocery a crisis which will eventually be overcome so that the grocery trade may revert to its previous state of higher margins and comfortable trading? The authors of this special feature argue that this is not the case; they see the price war as a symptom of more fundamental change inherent in the trade. What of the future? Growth will continue to be led by multiples and larger co‐ops, and this is likely to put significant pressure on the multiple sector itself. Large store operation will ensure the continuation of price competition, and there will be no competition between superstores at a local level. Moves into non‐grocery lines will continue. And there will, inevitably, be casualties. But there may be more fundamental changes. With the widening of the product mix into non‐food, some grocery operators might find themselves in the role of department store and variety chain. And there will very probably be more of the convenience 7–11 type store with its combination of basic grocery lines with CTN and toiletries.

Citation

Beaumont, J.A. and Lambert, G. (1978), "The grocery price war: CRISIS OR PROGRESS?", Retail and Distribution Management, Vol. 6 No. 6, pp. 10-15. https://doi.org/10.1108/eb017968