Marketing Case

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Literature review

There is a wealth of literature dealing with the two main areas where supermarkets have affected the grocery shop and retail sector in developing countries: supermarkets choose, regulate, and tie their suppliers to a medium-term contract thorough their economies of scale.

The SMERU Research institute (INDONESIA) in 2007, research on the impact on traditional market had been negative and usually follows the same style. The first traditional retailers to go ort of business are usually those selling broad types of goods, processed food and dairy products, with fresh produce shops following afterwards.

After several years of competition, the traditional retailers that are usual in business are those selling niche products or those in locations where supermarkets are legally prevented from entering. This trend is not surprising for several reasons, firstly supermarkets, their economies of scale, can afford to sell cheaper and mostly higher quality products. Moreover, information on the price of each good is listed and easily accessible by the people. Thirdly supermarkets provide a cleaner and more comfortable shopping environment, have longer opening hours, and offer more payment options such as credit and debit cards and credit financing for large household appliances. Fourthly, products were sold in supermarkets, such as foodstuff, pass quality controls and are not sold past their expiration dates.

This study investigates the truth behind by measuring the impact of supermarket on traditional market traders in Indonesia's urban cantors.

The quantitative impact analysis finds mixed statistical results for various performance indicators of traditional markets, such as profits, earnings, and employee numbers. Out of these performance indicators. Supermarkets only statistically