The supplier–retailer relationship in contemporary food markets

In the last few decades, the food retailing landscape in developed countries has experienced profound changes. The US food retail industry has become increasingly concentrated at both the local and national levels, thanks also to the growth of new, large store formats and, recently, online platforms. The increased scale of food retail operations has gone hand-to-hand with new marketing technologies, data analytics, sophisticated distribution systems, and improved logistics. Such structural changes have altered the paradigms of supplier - retailer relationships. This chapter reviews the recent literature on the supplier-retailer relationship, with a focus on agricultural and food markets. First, we provide a 'broad stroke' discussion of the heterogeneous nature of supplier-retailer relationships and their drivers. Second, we examine some recent structural models of vertical relationships in differentiated products markets. Third, we discuss non-price-related practices affecting retailer-supplier relationships, such as private label production, slotting allowances, and trade promotions. Last, we propose topics for future research.