Retailer‐supplier partnerships: hostages to fortune or the way forward for the millennium?

Abstract Discusses the relationship literature, drawing on relationship marketing, marketing, organisational behaviour, and strategy literatures and provides an overview of the central constructs of power/dependency, commitment and trust. Subsequent discussion examines these constructs in the UK food industry context through a discussion of three types of retailer‐supplier relationship: partnership between retailer and strong branded supplier (usually market leader); own brand/private label relationship; and retailer relationships with secondary brand manufacturers. A small number of own brand suppliers have interdependent relationships with retailers. However, they lack the strong marketplace brand which reflects a large part of the bargaining power of branded market leaders. These three types of relationship reflect different levels of interdependence/dependence and provide useful insights into the constructs that managers might use to better manage and prioritise these relationships. Takes account of the power imbalances in the industry, provides realistic evaluation of somewhat overused and frequently imprecise concepts – power, trust etc. Major innovations in retailing – category management and efficient consumer response – require close co‐ordination of trading partners. Retailers and manufacturers embark on a range of relationships – discrete exchange relations to value laden relationships. Provides a framework for understanding the value of these different relationships. Finally, this paper looks forward to the next millennium.