Title: Penetration of a new shop concept – the case of discount in Denmark

Authors: Niels Jorgensen

Addresses: Department of Marketing, University of Southern Denmark, Grundtvigs Alle 150, 6400 Sonderborg, Denmark

Abstract: New shop concepts are continuously developed and more or less successfully introduced. Usually, new shop concepts are perceived as threats by the established retail industry, which reacts differently to these threats. The purpose of this paper is to analyse the retail trade|s behaviour in connection with the introduction of new shop concepts. In the article, the discount stores| penetration of the Danish grocery market will be used to prepare a model. The development within the discount industry in Denmark has, however, not yet come to an end. The established chains still have development plans, and a new aggressive player – Lidl – is entering the market with a shop concept that differs from the concepts of the incumbent discount chains. This has already caused reactions from competitors, suppliers, and other interested parties. It would be interesting to investigate, if it is possible to use the model prepared for the previous period, to predict future developments.

Keywords: Lidl; Denmark; new shop concepts; discounting; location; grocers; discount stores; grocery industry.

DOI: 10.1504/IJESB.2006.009278

International Journal of Entrepreneurship and Small Business, 2006 Vol.3 No.3/4, pp.321 - 328

Published online: 15 Mar 2006 *

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