Competitive convergence in retailing

Abstract

This article’s objective is to study the influence of a new hybrid format in the retail distribution sector and this emerging market context is defined as competitive convergence. To attain this objective, 1150 surveys of retail distribution professionals were conducted. These surveys aid in distinguishing retail formats and indicate their competitive position allowing us to generate positioning maps of the Spanish retailing. In addition, Cramer’s coefficient V was used as an association measure between qualitative variables and latent class analysis (LCA) modelling was used to build a segmentation analysis of the competing offer. This analysis shows how retail formats evolve and adapt their competitive variables, even adopting characteristics from different formats (competitive convergence). Supermarkets dominate the Spanish retailing and a hybrid retail format’s better competitive position in aspects commonly associated with other formats supports. Spanish retailing provides an example of the non-static nature of retail formats and business models.

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