The consequences of concentration in the German food trade

German companies were already significantly expanding their activities in the 1990s. The presence of foreign companies uncharacteristic, due to capital rich German competitors and ethical consumer behaviour, as well as because foreign companies do not pay enough attention to the idiosyncrasies of the German consumer. To counterbalance this concentration, independent small retailers are establishing national procurement and sales associations. Within the small and medium-sized enterprise sector, the advancement and growth potential of innovative business and organisational formats – small and medium-sized branch network enterprises – can be observed. The situation of independent small retailers and shops not affiliated to associations is difficult. Two strategic possibilities exist: cooperation and association; and specialisation in an area not covered by the others.
Producers are forced to adapt to the concentration of trade; they have to consider what they can transport in large quantities or, if they produce in small quantities, they must find a niche market. The concentration of trade also leads producers towards cooperation and the associations.