What is Vertical Integration in Retail? Explained

Vertical integration in the retail industry involves a company's ownership or control of multiple stages in the supply chain, from production or manufacturing to distribution and retail. This strategy aims to streamline operations, enhance efficiency, and gain more control over the entire production and distribution process. In retail, a vertically integrated company may own or manage aspects like manufacturing facilities, distribution centers, and retail outlets. By vertically integrating, a company seeks to reduce costs, improve coordination, and have a direct influence on product quality and availability, ultimately contributing to a more self-sufficient and competitive business model.