National Brand Listings by Discounters – How do they Affect Supermarkets?
(A2023-113940)

AUTHORS

Lisa Joerg, University of Hamburg; Sören Christiansen, University of Hamburg; Karen Gedenk, University of Hamburg

ABSTRACT

Competition between supermarkets and discounters is intense. Traditionally, supermarkets have offered larger assortments, while discounters have focused on lower prices. But in recent years, these differences have blurred. Discounters have listed more national brands, and supermarkets have responded by matching the discounters’ prices for these national brands. The authors use field data on two German retail chains to study how much national brand listings by the discounter hurt the supermarket and whether price matching by the supermarket is an effective reaction. Their research has implications for both retailers and manufacturers.