Earlier quoted context omitted.
The article claim is not that bigger stores used their pricing power to get cheaper deals and passed that savings along to consumers who then preferred them and their lower prices. The claim is that the large grocery chains are able to use their pricing power to demand prices that squeeze suppliers, keeping the difference for the grocer, not for the consumer. Their ability to do this has increased the more consolidat…
This is very silly, and the evidence for it is in the world all around you. Walmart is cheaper for most things. If they did not in fact pass the cost on, then there is the idea for your startup business: a grocery supplier to small neighborhood retailers.
But Walmart is also a lot cheaper for Walmart. One delta is larger than the other.