The Competitive Strategies of Traditional Grocery Stores (Bakkals): Value Chain Analysis

Abstract

Traditional grocery stores (Bakkals) have the largest share among the actors that make up the grocery retail sector in Turkey. However, with foreign retailers entering the market and especially national chains gaining strength, chain stores have become an important threat to grocery stores in recent years. In the field of retail geography, traditional food retailers' resistance and coping strategies against modern chains are generally analyzed from the resilience perspective, while in this study, the competitive strategies of grocery stores are analyzed from the value chain perspective. In this regard, the aim of this study is to reveal the competitive advantages of grocery stores in Eskişehir with the value chain analysis model proposed by Porter. In line with this goal, a total of 40 in-depth interviews were conducted with grocery stores, local/regional/national/global market chains and non-firm actors in Eskişehir, and the data obtained were analyzed using qualitative methods.. According to this, the competitive strategies that grocery stores use against organized retail chains and are determined. According to the findings, the roles of grocery stores have changed with the spread of organized retail chains. Grocery retailers had to implement new strategies especially in their primary and support activities in order to create and/or increase value. However, these strategies are not sufficient for grocery stores to remain competitive and so there is need to intervention of the regulatory framework. In conclusion, the analysis of retail spaces shows that the value chain approach offers a new perspective for economic geography.