Slotting allowances are a relatively recent trend, particular to the retail food industry. These allowances are lump-sum up-front transfer payments from manufacturer to retailer when the manufacturer launches a new product. The practice has attracted some scrutiny because of uncertainty about...

The retail practice of charging a fee to stock new products is a relatively new but growing phenomenon. Termed a "slotting allowance", it has attracted considerable scrutiny because of uncertainty about its purposes and consequences. We propose and statistically test several hypotheses to assess...