In this paper, we analyse the relationship between strategy and performance, taking the Spanish retail food sector as a reference. In particular, we study the existence of performance differences among groups, the existence of performance differences intragroup during a period of strategic stability and the relationship that exists between the different aspects of strategy and the performance obtained. Our results suggest that this relationship presents marked differences amongst the firms belonging to different strategic groups. This could explain why the implementation of different strategies might lead to similar performance levels, and also demonstrates the usefulness of strategic groups as a tool of analysis that is particularly appropriate when studying business performance.

Key words: business performance, retailing, strategic groups.
JEL classification: M10.