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Words: 2,000 | Submitted: Mon Mar 24 2008
... 75% of the market share according to TNS (2007). In relation to this, fifty percent of the larger suppliers have to rely upon supermarkets to make up a vast majority of their sales. Since then, multiple retailers now lead the supply chain. They are able to negotiate with suppliers as market trends meant that it became easier for a large supermarket to obtain a new supplier rather then a supplier to obtain a new retailer to sell to. This was confirmed by the Competition Commission (2000 and 2003), who stated that the top five supermarkets accounted for 65.5% of sales from a group of suppliers and that out of Tesco's 2,600 suppliers, their largest supplier only contributed 2.6% of its purchases. This proportion shows that suppliers are relying heavily on the sales of the multiple supermarkets. Lloyd, McCorriston, Morgan and Weldegebriel, (2006) noted these concerns in their paper addressing buyer ...
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