Supermarket Growth Essay

344 Words2 Pages
To conclude, although it may seem as though these supermarkets are tactically making it increasingly difficult for infant retailers to enter the industry, it could be seen that they are simply making decisions to aid the economic growth and success of their businesses. For example, the use of ‘landbanks’ may be to widen the areas they provide to, and not to prevent rivals or small shops from opening businesses on those development sites. However, it could be argued that the ‘big four’ do compete unfairly, putting up barriers to trade in the form of collusion. If they were only interested in the efficiency and growth of their own businesses why would they illegally collude? Overall, supermarkets are not a barrier to competition but instead are increasing their efficiency. However this efficiency is crucial to the success of supermarkets and can be seen as a barrier by the competition with supermarkets not necessarily being a barrier to competition but more a barrier to success hence the closure of many smaller independent stores as they are not on the same resourceful and capable level as supermarkets. To conclude, although it may seem as though these supermarkets are tactically making it increasingly difficult for infant retailers to enter the industry, it could be seen that they are simply making decisions to aid the economic growth and success of their businesses. They should not be blamed for the low prices they offer because of their efficiency from economies of scale. They have been found though to be buying ‘landbanks’ which restricted other retailers from buying the sites and opening stores. However it cannot be proven whether they were doing this to create barriers to entry or to allow them to expand themselves in the future. Overall it can be seen that the ‘big four’ have created barriers to entry through both legal and illegal methods. However the

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