Discount is on the rise, as a retail format, as a product concept and asa behaviour. It has already made deep inroads on the Continent and willinevitably invade the UK too. The…
Abstract
Discount is on the rise, as a retail format, as a product concept and as a behaviour. It has already made deep inroads on the Continent and will inevitably invade the UK too. The rapid development of discount formats – and of discount propositions within mainstream formats – is both the source and the result of overcapacity and the increasing commodity nature of the retail offering. Argues that Private Label profitability is likely to be squeezed between the new price‐based propositions and the strong national and international brands, which are fighting to maintain their share. Retailers will have to increase their efforts on Private Label and move their offering in two parallel directions: price‐driven propositions (designed for cost) and value‐driven propositions (to compete with brands). Manufacturers, in turn, will suffer unless they take initiatives to help retailers meet the growing challenge imposed by tertiary brand developments.
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The purpose of the paper was to establish the implications of globalisation for labour markets when efficiency wages create endogenous wage rigidity and to re‐examine the…
Abstract
Purpose
The purpose of the paper was to establish the implications of globalisation for labour markets when efficiency wages create endogenous wage rigidity and to re‐examine the credibility of the arguments that call for deregulation, more wage flexibility and less social protection in this context.
Design/methodology/approach
The role of efficiency wages is reviewed in the traditional international economics theory, new economic geography and the neo‐Schumpeterian perspective towards international competitiveness.
Findings
First, taking into account endogenous sources of wage rigidity has different implications for employment, inequality, regional growth convergence and the role of the welfare state in the context of international competitiveness, from those derived when assuming them away or taking them as imposed by labour market institutions. Second, policies that would substantially reduce social security or lead to cost‐cuts may have an adverse effect on effort and thus on productivity.
Originality/value
To the author's knowledge, this paper is the only review in the literature that concentrates on efficiency wages applied in international trade.