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Changes in the hard discounter format development in food retail chains based on global trends: Standardization or adaptation?

Vol. 23, Iss. 25, JULY 2017

PDF  Article PDF Version

Received: 12 April 2017

Received in revised form: 22 May 2017

Accepted: 19 June 2017

Available online: 14 July 2017

Subject Heading: CHALLENGES OF GLOBALIZATION

JEL Classification: D12, D22, M31

Pages: 1477–1492

https://doi.org/10.24891/fc.23.25.1477

Yurtaeva V.K. OOO Analytical Center Project Office, Moscow, Russian Federation
office@ac-po.ru

Subject The article considers the development of hard discounters and their advantages.
Objectives The purpose is to create theoretical and methodological framework for the study of hard discounters and their benefits.
Methods I identify the key global trends in the hard discounters market within the desktop research format. Based on the analysis of business strategy for European countries adaptation and the experience of European retailers, I create a list of modern trends of hard discounters of Europe. The results are confirmed by field studies in the test purchase format in stores that position themselves as hard discounters, in three countries (Germany, Spain and Russia), and by in-depth interview with retail market participants.
Results Based on results of the test purchase with a reference map of the hard discounter, I adjust the map of format indicators, taking into account global trends, and get a map of the modern hard discounter in the world retail market. The map of indicators of a hard discounter can be used as a methodological basis for further scientific development of effective trade formats for Russian and international retail chains and for creating strategies of network companies.
Conclusions The traditional business model of a hard discounter modifies in the areas of product mix policy, promotion and purchasing environment.

Keywords: deep discounter, retail chain, trading format, grocery retailer

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