Oligopoly: Living with Rivals
J. Sainsbury, Tesco. Asda and Argyll (which trades as Safeway, LoCost and Presto) account for over 50 per cent of the grocery trade in the UK. In 1977 Tesco launched ‘Operation Checkout’ which offered across the board price reductions. Rivals sought to match Tesco’s price cuts. Whilst the price war allowed the major players to increase their market shares, many smaller grocers were forced out of business.
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