Competition, Saturation and Growth Strategies in Grocery Retail Markets

School of Geography, University of Leeds

Principal Investigators:

Prof Graham Clarke
Dr Mark Birkin
Dr Dave Clarke
Prof Cliff Guy (Cardiff)
Prof Neil Wrigley (Southampton)

Dates:

1996 –

Grant:

Various

Summary:

This research project examines the notions of retail saturation in grocery retailing in a number of countries. A key argument has been that saturation can only meaningfully discussed at the local level. That is, statements that retail markets are globally saturated can be misleading and unhelpful. However, the concept of saturation is still of crucial importance. In particular, the perception of saturation can influence the future growth strategies of retail organizations and the methods that are employed to attain that growth (merger/acquisition vs. organic growth, for example). This is not only important in domestic markets. Whilst saturated home markets may be one explanation for internationalization strategies such international growth will be difficult to achieve if foreign markets are themselves equally saturated. This research considers the issues of competition and saturation in multiple food retailing across selected markets (Europe, UK, USA). In saturated markets opportunities for new store development become less obvious. Retailers are thus now keen to explore areas they have perhaps traditionally avoided and find new methods for optimising alternative methods of growth, such as mergers and acquisitions. This research examines both these research areas. The former involves identifying new sites for store location such as ‘food deserts’ (see also project on food deserts and diet). The latter involves finding new methodologies for the spatial analysis of retail growth.

Publications

• Langston, P., Clarke, G. P., Clarke, D. B. (1997) ‘Retail saturation, retail location and retail competition: an analysis of British grocery retailing’ Environment and Planning A 29, 77–104.
• Langston, P., Clarke, G. P., Clarke, D. B. (1998) Retail saturation: the debate in the mid 1990s, Environment and Planning A 30, 49–66.
• Clarke, G. P., Langley, R. and Cardwell, W. (1998) ‘Empirical applications of dynamic spatial interaction models’ Computers, Environment and Urban Systems 22(2), 157–184.
• Silcock, L., Clarke, G. P., Clarke, D. B., and Wrigley, N. (1999) ‘Grocery provision in the USA: room for expansion?’ International Journal of Retail and Distribution Management 27(1), 8–21.
• Birkin, M., Clarke, G. P., Clarke, M. (2002) Retail Geography and Intelligent Network Planning Wiley, Chichester.
• Birkin, M., Clarke, G. P., Douglas, L. (2002) ‘Optimising retail mergers geographically’ Progress in Planning 58(4), 229–318.
• Clarke, G. P., Eyre, H., Guy, C. (2002) ‘Deriving indicators of access to food retail provision in British cities: studies of Leeds, Bradford and Cardiff’ Urban Studies 11, 2041–2060.
• Poole, R., Clarke, G. P., Clarke, D. B. (2002) ‘Grocery retailers and regional monopolies’ Regional Studies 36(6), 643–659.
• Poole, R., Clarke, G. P., Clarke, D. B. (2002) ‘Growth, concentration and regulation in European food retailing’ European Urban and Regional Studies 9(2), 167–186.
• Birkin, M., Clarke, G. P., Clarke, M., Culf, R. (2003) ‘Using spatial models to solve difficult retail location problems’ in Stillwell, J. C. H. and Clarke G. P. (eds) Applied GIS and Spatial Modelling Wiley, London, 35–54.
• Debenham, J., Clarke, G. P., Stillwell, J. C. H. (2003) ‘Extending geodemographics: a new regional prototype’ Environment and Planning A 35, 1025–1050.
• Debenham, J., Stillwell, J. C. H., Clarke, G. P. (2003) ‘The estimation of self-containment and catchment size indicators for use in small-area classification’ International Journal of Population Geography 9, 253–271.
• Poole, R., Clarke, G. P., Clarke, D. B. (2003) ‘The battle for Safeway’ International Journal of Retail, Distribution and Management 31(5), 280–289.
• Clarke, G. P. and Bennison, D. (eds, 2004) ‘Extending the food desert debate’ International Journal of Retail and Distribution Management 32(2), 69–136.
• Guy, C., Clarke, G. P., Eyre, H. (2004) ‘Food retail change and the growth of food deserts: a case study of Cardiff’ International Journal of Retail and Distribution Management 32(2), 72–88.