Structural Adjustment in Austrian Food Retailing. Impact on the Supply Side of the Market and Implications From the Viewpoint of Competition Economics
Food retailing in Austria is characterised by a high and rising level of market concentration. In addition to being faced with legal actions due to price rigging, food retailers have raised concerns from an economic policy perspective, especially when Zielpunkt GmbH, a chain of discount stores, went bankrupt in late 2015. The analysis shows that its market exit did not much affect brand variety, but considerably increased market concentration, which will not be much relieved by the intended takeover of a number of Zielpunkt outlets since most of them will be absorbed by incumbent competitors.