The structure and investments of food and general retail trade
The study examines the emergence of overcapacity in Finland’s daily goods trade in the early 1970s. The regional shift in retail trade and the renewal of the store network — in particular the development of large stores and the concentration of activity into four groups — gave rise to possible over-investment from the late 1960s to the early 1970s. The study examines whether the maintenance of market share and competitive pressures led to an oversized expansion of capacity.
The data used consist of store floor area and investment data for the years 1970–1976 at both the national and regional level. The key measures are store floor area per capita and sales per square metre of store space.
Concentration has increased distribution efficiency, but is also associated with problems: competition has led to a thinning of the store network in built-up areas, and the dominant position of the four major groups — one of which holds a market share of nearly 40 percent — makes it possible to exert influence over prices, product ranges, and service levels. The study seeks to produce basic information for potential regulation of the retail trade sector. (AI translation)
- ISSN: 0358-5980
- ISBN: 951-9281-24-X
