Consolidation isn't just for retailers

I write often about the effects of retail concentration, but something that I sometimes don't mention often enough is that the same is happening among the retailers' suppliers. In fact, it can be argued that vendor consolidation is perhaps an inevitable corollary -- vendors must consolidate to be able to deal with their huge customers.

As we watch retail bankruptcies in the recession speed up the trend to channel consolidation that has been going on for decades, we can expect to see vendors following the same path:

Slowing purchases of clothing and accessories may spur consolidation in the fashion industry, Liz Claiborne Inc's chief executive officer (CEO) said on Friday [...]

He said there could be more consolidation among department store vendors than among the stores themselve