Transcript presentation given in the context of the High Level Forum for a Better

Presentation to the Sherpa
on cooperation
Buying alliances are different and act in different ways
- Sherpa Meeting -
Boosting retail competitiveness by working together
About us
•
•
The only European association for groups of
independent retailers
16 companies:
Boosting retail competitiveness by working together
About us
•
7 associations:
Boosting retail competitiveness by working together
Cooperation is done at different levels
• Regional (e.g. cooperation in Nordrhein
Westphalia)
• National (e.g. cooperation across France)
• European (e.g. cooperation across borders)
Groups of independent retailers (retailer
cooperatives, purchasing groups, central
administration) usually cooperate at regional
or national level.
Boosting retail competitiveness by working together
Underlying rationale for cooperation
• To create countervailing buying power with big
brand manufacturers and better prices as a
result
• Independent retailers can compete with
international retail chains
• Efficiencies in administration/purchasing
Boosting retail competitiveness by working together
Types of cooperation
in groups of independent retailers
• Joint purchasing, advertising, marketing, etc.
• Investing in logistics + IT (transport, telecoms...)
• New distribution centres
• Development of private labels
• Financial services/payment guarantees
• Product testing for safety etc.
Boosting retail competitiveness by working together
Cooperating solves many problems
• Lack of economies of scale
• Inefficient supply chains
• Innovation difficulties
• Compliance burdens
• Difficult to get financing
Boosting retail competitiveness by working together
Cooperating solves many problems
• Improve know-how (food safety), support and
skills
• Limited online visibility
• Overall lack of competitiveness compared to
international chains
Boosting retail competitiveness by working together
EU alliances: Members work through
alliances of independent retailers
• Improved product quality
• Efficiencies generated in purchasing resulting in
lower consumer prices
• More level playing field with international brand
manufacturers that increasingly grow in size
• Strengthening of competition against
international retail chains + creating an
alternative to their aggressive expansion
Boosting retail competitiveness by working together
How it works: branded goods
• Alliances offer international and sophisticated
services e.g. marketing and distribution
• Develop improved category strategies, joint
research and development
• Efficiencies on different levels (logistics, audit,
branding, etc.)
Boosting retail competitiveness by working together
How it works: private labels
• Alliances invite suppliers to tender for private
labels
• Strive to realise efficiencies in different
categories (audit labour standards, supply
certainty, transport etc.)
• Offer suppliers access to a broad scope of
retailers, markets and PL activities (use
available capacity by supplying an alliance)
Boosting retail competitiveness by working together
Benefits of these alliances:
manufacturers
• Optimise marketing activities such as product
launches
• Expand geographical presence
• Support market entry (e.g. of SMEs)
• Rapidly get experience in new markets,
increase sales, increased access to process
innovation, etc.
Boosting retail competitiveness by working together
Benefits of these alliances: consumers
• Increased product choice
• Increased access to product innovation
• Improved product quality
• Higher quality of operations/logistics improving
product availability
• Improved purchased conditions/efficiencies
e.g. in terms of logistics passed on
Boosting retail competitiveness by working together
Thank you for your attention!