Impact of Retail Market Concentration on Differences in Retailers’ Productivity and Business Results

Goran Vukmirović; Radenko Maric; Jelena Damnjanović

doi:10.5937/industrija46-17337

Goran Vukmirović University of Novi Sad Faculty of Economics in Subotica Department of Trade, Marketing and Logistics
Radenko Maric University of Novi Sad Faculty of Economics in Subotica Department of Trade, Marketing and Logistics
Jelena Damnjanović Novi Sad School of Business

DOI: https://doi.org/10.5937/industrija46-17337

Keywords: Retail chain, Productivity, Market share, Market,

Abstract

The aim of this paper is to define the degree of the Serbian retail market concentration and to determine the nature of the correlation between market concentration and retailers’ business performances. The main task of the research is to indicate how changes in market share affect the development of the retail sector. Based on financial indicators in retail, realized turnover and profit per employee, the null research hypothesis was tested for proving a significant correlation between the size of market share of retail chains and their productivity and business results. The obtained results show the level of deviation in terms of the differences between the size of market share and productivity and the business result. There is also an obvious increase in the market share of large retail chains which has led to a decrease in the total number of small independent retailers, as well as a rise in market concentration levels. The obtained results, the conducted analyses and tests will point to the potential dangers of the concentration of the national market and define the criteria for achieving a higher degree of homogeneity. Suggestions and guidelines for future research are presented in the paper.

Author Biographies

Goran Vukmirović, University of Novi Sad Faculty of Economics in Subotica Department of Trade, Marketing and Logistics

Goran Vukmirović, is an Assistant Professor at Department of Trade, Marketing and Logistics, Faculty of Economics, University of Novi Sad, Segedinski put 9-11, 21000 Subotica, Serbia, Segedinski put 9-11, 21000 Subotica, Serbia He realized over 30 National and International projects such as: IPA, ERAZMUS, TEMPUS, etc. He authored over 50 scientific papers in the field of Trade, Management and Logistics. His field of research: Logistics; Trade; CRM.

Radenko Maric, University of Novi Sad Faculty of Economics in Subotica Department of Trade, Marketing and Logistics

Radenko Marić, PhD, is an Assistant Professor at Department of Trade, Marketing and Logistics, Faculty of Economics, University of Novi Sad, Segedinski put 9-11, 21000 Subotica, Serbia. He authored over 70 scientific papers contributing to domestic and international literature in the field of Trade, Management, Logistics and International Business. He made a great contribution to a number of NGOs for development of culture, science and education. His field of research: Business Logistics; Trade; CRM; International Business

Jelena Damnjanović, Novi Sad School of Business

Jelana Damnjanović, PhD, is professor and Head of Novi Sad School of Business. She has published over 50 scientific papers in domestic and international journals. Her research interests are International Trade, International Business, etc.

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