Conflict delistings, where manufacturers’ brands are removed from retailer shelves due to failed negotiations, have become increasingly common. Such delistings not only impact the involved brands, retailers, and categories but can also have consequences for uninvolved brands, retailers, and categories. This research investigated the sales effects of a large-scale conflict delisting between a major retailer and a manufacturer in the Belgian fast-moving consumer goods market across different combinations of involved and uninvolved parties. The results show that the uninvolved retailers gained, while the involved retailer suffered, both for involved and uninvolved brands (in the involved categories), but also in uninvolved categories. This finding was replicated in a similar conflict delisting case. Further analysis of the heterogeneity across uninvolved categories at the involved retailer revealed that uninvolved categories in which the involved retailer had a premium price, a high promotion level, and many private-label brands (relative to the competition before the conflict delisting) experience lower losses. The same holds for uninvolved categories where the involved retailer offered more attractive prices and promotions during the delisting. Our study further discusses the boundaries of our findings, by illustrating that results do not replicate for a conflict delisting case that was highly dissimilar to the focal case in the study.
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