Vertical Marketing Systems, Supply Chains and the New Indicators of Retailing’s Significance

In modern vertical marketing systems (i.e., in grocery sector), the greatest power is demonstrated by retail chains, and producers depend thereupon. This paper analyzes vertical marketing systems and the role of retailing therein. Specially analyzed is the power of retail chains’ demand with regard to the entire supply chains they head, as well as the present-day new competition in retailing and modern business concepts related to the vertical marketing systems. Additionally, analyzed are also select indicators to examine the significance of retailing in an individual national economy. The purpose of this paper is to emphasize the new indicators of significance of retailing in economy with regard to the realized GDP, as a component of value chains. These indicators complement the usual retailing significance analyses from the point of view of its share in the number of employees and the number of companies.

From the conducted analysis, one may conclude that the vertical marketing systems become increasingly important, and retailing assumes a new role in economy in that sense. Thus, new indicators of retailing significance might also be necessary.