Chasing a Ghost: Retail Power and the Development of Slotting Allowances in the United States Food Sector: an Historical Perspective

Roger A. Dickinson

Slotting allowances are one-time payments made by suppliers to retailers related to the introduction of new products.

Chasing a Ghost: Retail Power and the Development of Slotting Allowances in the United States Food Sector: an Historical Perspective

Roger A. Dickinson, University of Texas at Arlington

INTRODUCTION

Slotting allowances in their most basic form are one-time payments made by suppliers to retailers related to the introduction of new products. They may also be considered one of a family of related marketing practices that include presentation fees, slotting allowances or fees, display fees, pay-to-stay fees, and failure fees (Bloom et al. 2000, 93). Slotting allowances are a one-time event, whereas pay-to-stay fees may make the...

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