Acta academica karviniensia 2019, 19(4):51-59 | DOI: 10.25142/aak.2019.025

IMPACTS OF HORIZONTAL INTEGRATION ON CZECH RETAIL STORES WITH FAST-MOVING GOODS

Michal Paták, Lenka Branská, Zuzana Pecinová
University of Pardubice, Faculty of Chemical Technology, Studentská 95, 532 10 Pardubice

Horizontal integration is currently an opportunity to increase the performance of organizations. While being possible with various entities, it is typical for retail stores and companies that provide paid logistics services. The literature deals with the benefits of horizontal integration and barriers to implementation. So far, however, it has not addressed the results of horizontal integration, i.e. perception of their advantages and disadvantages after the integration process. The paper expands the theoretical knowledge in the field of disadvantages of implemented horizontal integration. It presents the results of primary quantitative research carried out in 142 retail stores. Managers of integrated stores consider the limited influence on the type and breadth of the assortment sold as well as on the setting of prices, margins, and the need to adhere to a uniform visual style of the store to be the biggest disadvantage. Managers of independent stores do not perceive the problem of limiting the influence on the type and breadth of the assortment sold so significantly, but much more significantly than managers of integrated stores, they see the disadvantage in the lower quality of delivered goods, limited influence on the distribution of created financial resources and distortion of market information.

Keywords: fast-moving consumer goods, horizontal integration, retail, supply chain management.
JEL classification: L22, L81, N31

Received: July 23, 2020; Revised: August 20, 2020; Accepted: September 9, 2020; Published: September 10, 2020  Show citation

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Paták M, Branská L, Pecinová Z. IMPACTS OF HORIZONTAL INTEGRATION ON CZECH RETAIL STORES WITH FAST-MOVING GOODS. Acta academica karviniensia. 2019;19(4):51-59. doi: 10.25142/aak.2019.025.
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