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Issue 3/ 2014, article 8

Authors: Zdenko Segetlija, Davor Dujak

Title: RETAIL SUPPLY CHAINS AND EFFICIENCY OF RETAIL TRADE

Keywords: retail trade, retail chain, retail supply chain, retail trade efficiency.

Abstract:

Background: Since in today's supply chains in particular areas (for example in the grocery sector) most power is in the hands of retail chains on which manufacturers depend, this paper analyzes the retail supply chains. The aim of this paper is to propose a new indicator of retail trade efficiency for an individual national economy. This indicator would then be used to complement the usual analyses. As large marketing systems, retail supply chains present new competition for production companies in particular states, because they can get around them or replace them with other production companies.
Methods: Concepts relating to retail supply chains are analyzed on the basis of accessible literature, and available data sources are used as the basis for a table presentation of 10 world's largest retail chains in the grocery sector, with basic remarks about their logistics and about the development of the their supply chains (basic models are described). Efficiency of the total retail trade in the selected countries is analyzed on the basis of the following indicators (a) turnover per unit of selling surface; (b) turnover per 1 employee in the retail trade. These indicators are presented in tables and graphically for the selected European countries.
Results: The performed analysis leads to the conclusion that retail trade efficiency, as measured by the realized turnover per 1 employee in the retail trade and by the realized turnover per unit of selling surface in the retail trade, is realized diversely in individual observed countries; yet there are no differences in the results between transitional and market-developed countries. However, the analysis of retail trade efficiency of entire economies of the observed states shows that there are differences between transitional and market-developed countries.
Conclusions: Thus, in order to evaluate the retail trade efficiency for the total economy in a particular country it would be necessary to also take into account the ratio between the realized gross domestic product (the GDP) and the retail turnover in the given country. This proposal is important because it would enrich the information basis for the analysis of retail trade efficiency. In that respect, further research should be focused on the analysis of this broader understanding of retail trade efficiency that is important especially for economically less developed countries (in this case the countries in transition).

Full text available in in english in format: Adobe Acrobat pdf article nr 8 - pdf

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Zusammenfassung in Deutsch Zusammenfassung in Deutsch.

For citation:

MLA Segetlija, Zdenko, and Davor Dujak. "Retail supply chains and efficiency of retail trade." Logforum 10.3 (2014): 8.
APA Zdenko Segetlija, Davor Dujak (2014). Retail supply chains and efficiency of retail trade. Logforum 10 (3), 8.
ISO 690 SEGETLIJA, Zdenko, DUJAK, Davor. Retail supply chains and efficiency of retail trade. Logforum, 2014, 10.3: 8.
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