The top six largest supermarkets have dominated the market in the UK making it impossible for the new companies to invest in the market. Consequently, the result has been a high concentration ratio in the market leading to various implications both negative and positive. Among the positive impacts include the ability of the large supermarkets to have a big say while negotiating with the suppliers which leads to better prices. Besides, the companies earn a big revenues which leads to penetration of new markets leading to a bigger market share. The negative impacts involve limited consumer choices, unfair competition in the consumer goods since the companies have introduced a near monopolistic culture in the country sidelining the new and upcoming supermarkets.
The policies that the authorities put in place brought about recommendations that the large supermarkets ought to adopt to rectify the situation. However, the policies are yet to yield any tangible results as the situation continues to be prevalent in theUK.
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