Presentation to the Sherpa on cooperation Buying alliances are different and act in different ways - Sherpa Meeting -

About us The only European association for groups of independent retailers 16 companies:

About us 7 associations:

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.

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

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.

Cooperating solves many problems Lack of economies of scale Inefficient supply chains Innovation difficulties Compliance burdens Difficult to get financing

Cooperating solves many problems Improve know-how (food safety), support and skills Limited online visibility Overall lack of competitiveness compared to international chains

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

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.)

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)

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.

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

Thank you for your attention!