Economic crisis and intensity of the economic and geographical inequality: new spatial strategies of the top grocery retail chains in Greece

Abstract

During the last three decades, several sectors of retail trade have shown temporal declines in sales as a result of short-term income austerity programmes. This was not the case for food sales that were increasing nonstop. However, food sales have been declining sharply since 2008. This is a profound indication of the intensity of the current economic crisis that hits the country.

The impact of the crisis is highly differentiated among several types of food retailers. Independent shops and small chains are extremely vulnerable. On the other hand, a few corporate retailers that dominate the sector are gaining power, showing considerable increases in aggregate sales. More significantly they are implementing large investment projects.

The paper aims to study the geographical expansion strategies applied by the top grocery retailers in order to restructure their stores networks and increase their market shares. The analysis shows that the trends of unequal spatial and economic development are going to be further enhanced.