Contents Page
Introduction .....................................................................
........ 1
1. Market Structure of the South African Food Retail Market .............. 1
2. Principal Food Retail Firms and Their Market Shares .................... 1
2.1 Shoprite Holdings Ltd ..................................................1
2.2 Pick n Pay Stores Ltd ..................................................1
2.3 Spar Group Ltd..........................................................2
2.4 Woolworths Holdings Ltd ............................................... 2
2.5 Massmart Holdings Ltd .................................................. 2
3. Defining Characteristics of an Oligopolistic Market ..................... 2
3.1 Concentration of Firms ................................................. 2
3.2 Interdependence ........................................................ 2
3.3 Elevated Entry Barriers ................................................ 2
3.4 Product Differentiation .................................................2
3.5 Price Stickiness.........................................................2
3.6 Market Power ............................................................2
4. Analysis and Application to the South African Food Retail Sector ... 2
4.1 Concentration of Firms ..................................................2
4.2 Interdependence..........................................................3
4.3 Elevated Entry Barriers .................................................3
4.4 Product Differentiation .................................................3
4.5 Price Stickiness........................................................3
4.6 Market Power.............................................................3
5. Economic Implications for South Africa ..................................... 3
5.1 Employment Generation ................................................ 3
5.2 Consumer Welfare ....................................................... 3
5.3 Aggregate Demand and Growth ...................................... 3
5.4 Agricultural Linkages ...................................................3
5.5 Income Distribution ..................................................... 3
Conclusion .......................................................................
....... 4
References/Bibliography ..........................................................
. 4