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The expansion of regional supermarket chains: Implications on suppliers in Botswana and South Africa

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  • Reena das Nair
  • Shingie Chisoro-Dube

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.

Suggested Citation

  • Reena das Nair & Shingie Chisoro-Dube, 2017. "The expansion of regional supermarket chains: Implications on suppliers in Botswana and South Africa," WIDER Working Paper Series wp-2017-26, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2017-26
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    References listed on IDEAS

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    1. John Humphrey, 2007. "The supermarket revolution in developing countries: tidal wave or tough competitive struggle?," Journal of Economic Geography, Oxford University Press, vol. 7(4), pages 433-450, July.
    2. Davis, Peter & Reilly, Alan, 2009. "The UK Competition Commission’s Groceries Market Investigation: Market Power, Market Outcomes and Remedies," 2009 Conference, August 16-22, 2009, Beijing, China 53210, International Association of Agricultural Economists.
    3. Reardon, Thomas & Gulati, Ashok, 2008. "The rise of supermarkets and their development implications: International experience relevant for India," IFPRI discussion papers 752, International Food Policy Research Institute (IFPRI).
    4. Roger Clarke & Stephen Davies & Paul Dobson & Michael Waterson, 2002. "Buyer Power and Competition in European Food Retailing," Books, Edward Elgar Publishing, number 2405.
    5. Roman Inderst & Tommaso M. Valletti, 2011. "Buyer Power And The ‘Waterbed Effect’," Journal of Industrial Economics, Wiley Blackwell, vol. 59(1), pages 1-20, March.
    6. John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
    7. Altenburg, Tilman & Kulke, Elmar & Reeg, Caroline & Peterskovsky, Lisa & Hampel-Milagrosa, Aimée, 2016. "Making retail modernisation in developing countries inclusive: a development policy perspective," IDOS Discussion Papers 2/2016, German Institute of Development and Sustainability (IDOS).
    8. Reardon, Thomas & Timmer, C. Peter, 2007. "Transformation of Markets for Agricultural Output in Developing Countries Since 1950: How Has Thinking Changed?," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 55, pages 2807-2855, Elsevier.
    9. David Boselie & Spencer Henson & Dave Weatherspoon, 2003. "Supermarket Procurement Practices in Developing Countries: Redefining the Roles of the Public and Private Sectors," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1155-1161.
    10. Reena das Nair & Shingie Chisoro, 2015. "The expansion of regional supermarket chains: Changing models of retailing and the implications for local supplier capabilities in South Africa, Botswana, Zambia, and Zimbabwe," WIDER Working Paper Series 114, World Institute for Development Economic Research (UNU-WIDER).
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    Cited by:

    1. Reena das Nair & Namhla Landani, 2019. "The role of supermarket chains in developing food, other fast-moving consumer goods and consumer goods suppliers in regional markets," WIDER Working Paper Series wp-2019-59, World Institute for Development Economic Research (UNU-WIDER).
    2. Thando Vilakazi & Anthea Paelo, 2017. "Understanding intra-regional transport: Competition in road transportation between Malawi, Mozambique, South Africa, Zambia, and Zimbabwe," WIDER Working Paper Series wp-2017-46, World Institute for Development Economic Research (UNU-WIDER).
    3. Reena das Nair & Shingie Chisoro-Dube, 2016. "The expansion of regional supermarket chains and implications for local suppliers: A comparison of findings from South Africa, Botswana, Zambia, and Zimbabwe," WIDER Working Paper Series wp-2016-169, World Institute for Development Economic Research (UNU-WIDER).

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