Abstract

The position of retail industry has strengthened over the years to the extent that it may be suggested to dominate the supply chain in the market interface between producers and consumers (Atkins & Bowler, 2001). Within the supply chain, continuous concentration has decreased the number of farms, processors and independent grocers, such that often large or very large firms remain to compete intensively for their market shares and respond to demand of food in the market (Atkins & Bowler, 2001; Grocery Manufacturers Association and Pwc, 2011). The large food retailers also compete on an international scale, as they make acquisitions, and merge and establish their retail outlets abroad; reflecting the financial power of their capital investment (Atkins & Bowler, 2001). Furthermore, they enter into buying alliances to form groups, thereby reinforcing their global reach for the quality and quantity demanded by their consumers (Atkins & Bowler, 2001; Grocery Manufacturers Association and Pwc, 2011; Hollingsworth, 2004). Simultaneously product ranges are balanced to ensure maximum consumer choice against highest sales potential, whereby return on invested capital is a hallmark of successful business (Atkins & Bowler, 2001; Grocery Manufacturers Association and Pwc, 2011). These developments, however should be understood in terms of local market conditions, which have recently exhibited growing interest in local or domestically sourced food (Atkins & Bowler, 2001; Grocery Manufacturers Association and Pwc, 2011; Jones et al., 2004) and this is a clearly visible tendency in Finnish retailing as well (Vihma, 2005).