What has been the trend regarding retailing power in distribution channels over the past two decades?

The trend in retailing power within distribution channels over the past two decades demonstrates that retailers have gained increased power, which is reflective of several significant market shifts.

This increase in power can be attributed to the consolidation of retail entities, where larger retailers have absorbed smaller competitors, thereby increasing their market share and influence over suppliers. These powerful retailers have also utilized technology to enhance their operational efficiencies, gained access to customer data, and improved their inventory management, further solidifying their position in the market.

Additionally, as consumers have gravitated towards online shopping and e-commerce, retailers who adapted to these changes have been able to leverage their platforms to dictate terms with suppliers, influencing pricing, distribution practices, and product availability. They command significant bargaining power, which allows them to extract better terms from manufacturers and suppliers, ultimately shaping the dynamics of distribution channels.

In summary, the increasing dominance of retailers has reshaped the landscape of retailing and distribution, positioning them as central players in the supply chain and highlighting their enhanced influence over the industry.