The Retail Value Chain: How to Gain Competitive Advantage by Sami Finne

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This key cost driver can also be promoted on the basis of green values and carbon dioxide emissions, as has been done in the airline industry in Europe. At the same time, retailers should be prepared for one key risk factor, which is the dramatic rise in fuel costs and the accompanying increase in logistics costs. In addition to intra-company projects, discussions have been underway among different retail groups on possibilities to combine transportation to increase volumes and utilization rates.

The label space available does not increase, and small fonts Change Drivers in the Retail Value Chain 35 make labelling hard to read. Manufacturers might also use vague terms, like ‘spice’, and technical terms, such as ‘casein’ instead of milk, or ‘albumin’ instead of eggs, which make it difficult to know what the product actually contains. There is a continuing stream of new products related to special diets as the customer base grows and requirements rise. For instance, more than 5 per cent of US adults have food allergies; the most common food allergens are milk and other dairy foods, fish, eggs, crustaceans such as lobster and shrimp, tree nuts such as walnuts, peanuts, soy and wheat.

The consumer products industry has also been criticized for the increased obesity rate. During the past few decades, packages have grown in size, and many unhealthy foods such as confectionery and crisps are sold in mega packs. Advertising also often emphasizes manufacturer brands with indulgence, but as retailers often handle marketing of perishables them- 34 The Retail Value Chain selves with little manufacturer monetary support, fruit and vegetables have not gained much visibility in marketing.