Number of Retailers: a Measure of Competition



Consistent with traditional economic theory, the number of retailers per million compared to national inflation rates reveals that in markets with greater market competition, prices tend to rise more slowly. Retailers in the food and the sport and leisure sectors, however, work with unique market dynamics that diverge from this relationship and require careful branding and market positioning to succeed.

Malta, Iceland, and Luxembourg have the highest number of retail chains per million and report inflation rates that are among the lowest worldwide. Other countries with relatively high levels of competition and low inflation are Denmark, Croatia, Finland, Ireland, the Slovak Republic. The high competition, low inflation relationship fails in other sectors, including food and sport and leisure. In the sport and leisure sector, a higher number of retailers actually correlates to higher levels of inflation. 

*Note: The number of retail chains includes only retailers with a minimum of 5 stores or at least a €3 million turnover.




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