Independent supermarkets in New York City are facing a new competitive threat, but it isn’t coming from the “big box” stores—it’s coming from the supply chain.
When manufacturers like Mondelēz International discontinue Direct-Store-Delivery (DSD), they don’t just change a shipping route; they change the economic viability of small retailers. In this episode, we break down how the loss of manufacturer-provided logistics increases the marginal costs for independent grocers, potentially leading to higher retail prices and fewer neighborhood options.
We explore:
The economics of vertically integrated vs. independent supply chains.
How “price-free” service changes can weaken market competition.
The legal landscape surrounding the Robinson–Patman Act and its implications for discriminatory logistics.
For a complete article and illustration of this case, go to:
#Antitrust #SupplyChain #NYC #Mondelez #RobinsonPatman #Economics #GroceryNews #EconWorks
