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In terms of technology, the analysis of the point-of-sale (POS) data generated by checkout scanners and barcodes has helped shift bargaining power from the product suppliers to the increasingly-concentrated retailers. The growth of private-label products reflects both Porter’s risk of substitute goods and the power of product buyers.
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The rapid spread of supercenters and deep-discount food retailers illustrates Porter’s threat of the entry of new competitors, after supermarkets had been the predominant food retail format for several decades. This article explores current and possible future trends in the food retail value chain, particularly in relation to Michael Porter’s five forces, plus the impact of technology and another major driver of change, the most severe economic downturn since the Great Depression.