"while all the competition is likely to lower prices in the short term, "it also forces the companies to do things they may not otherwise do."
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"In order to get those lower prices you're going to see an increase in things that improve efficiency, but they may not improve the quality of the product or even the shopping experience," he said.
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That could mean the disappearance of an in-store bakery, or butcher, because it's cheaper to package those products centrally and then ship them to the stores.
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The sheer size of the new giants weakened the negotiating position of suppliers, many who sought to recoup their losses by reducing spending on the research and development of innovative food products.
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But it's those new products that many smaller, independent grocery retailers rely on to set their stores apart, drawing in customers that are looking at more than price points.
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"Manufacturers aren't investing in new innovation that they're bringing to the Canadian marketplace because they can't get a return, so ultimately what happens to our guys is that they start looking like everybody else and so they lose their point of difference,""
Trechos retirados de "Grocery wars: Push to lower prices not necessarily ideal for food industry overall"
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