Concentration in Retail Distribution: Measurement and Significance

Given the lack of economic studies of market structure in retail distribution there is a need to repair some 40 years of neglect. Concentration in UK retailing is here systematically measured for the first time, not using Census of Distribution or other government sources, but based on the identification of the leading 150 or so companies, and the clear identification of turnover and profits derived from UK retailing. The paper discusses the significance of these findings related to the years 1970–78 but the true importance lies in the establishment of a comprehensive, computerised data base, which can be up-dated, and on which long-term trends can be established in conjunction with behavioural studies of mergers, innovatory activities and pricing behaviour. In this way, a structure-behaviour-structure model may lay the foundations for a theory of competition in retailing, besides various policy implications.