Is Productivity a Factor in Supermarket Ownership Changes and Restructuring?

We examine the relationship between productivity characteristics and the process of restructuring and ownership changes in the supermarket industry. Contrary to studies in the manufacturing sector, ownership changes alone do not improve productivity. Rather, a change from wholesaler-distribution to self-distribution does significantly improve productivity. Logically, management would be motivated to acquire both the stores and the distribution centers owned by large firms in order to increase productivity as part of a strategy to improve competitiveness and market access.