Gross Margin and Buyer Power in Bulgarian Food Retailing
Gross Margin and Buyer Power in Bulgarian Food Retailing

Summary/Abstract: Increasing concentration in retail trade due to the expansion of physical outlets, the proliferation of online stores and the construction of retail chains results in changes in the bargaining power of retailers. Such changes are further facilitated by the accelerated process of merger, purchase and introduction of own-brands. This work aims to offer a comparative analysis of the structure of food products manufacturing, wholesaling and retailing in Bulgaria and it studies the level of gross margin in retail trade to research the power of retailers as buyers in the sector. This study makes an overview of the theory of the retail buyers’ power in the consumer goods supply chain. The paper further explores changes in the concentration of production, wholesale and retail in Bulgaria between 2001 and 2015 by analyzing the market share of the four companies with the largest sales volume and bargaining power of retailers measured by the level of gross margin.

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