Retailer activity in shaping food choice

Abstract

Retailers claim that they provide the products that consumers want but there is a much more complex dynamic process underpinning this relationship than the idea of consumer sovereignty. The paper explores this retailer-consumer relationship by considering how a variety of retailer activities influence consumers' food preferences and choices and how innovation from the retail sector changes this relationship. Retailers influence food choice through the distribution formats they create and the ways they operate them. As new distribution formats are developed, both in home and foreign markets, the choices of food that are offered to consumers are changed. The retailer decides on the items to be displayed for sale and how these items are merchandised into product ranges and categories. Branding is an integral part of this sales activity, with retailers increasing their control over branding of food and grocery products and in so doing often determining the composition of the products offered to consumers. Within the environment of the food outlet the retailer can influence consumer choice through pricing and promotional activity. The pattern of mutual influence of retailer and consumer is extremely dynamic being driven by competitive innovation by the retailer rather than only consumer sovereignty. Retailers measure success in terms of increased sales and market share. Influencing what consumers buy is part of the competitive weaponry of large retailers and their tactics become more sophisticated as they succeed and become bigger. Examples are used to illustrate this pattern of influence on consumer choice and its dynamic nature. Whilst successful retailers undoubtedly respond to consumer demand they also are a major influence in shaping food choice and preferences - an influence that is likely to become more powerful over the next decade. © 2012 Elsevier Ltd.