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Brand manufacturers again seek to stop any balancing of their market strength

Reacting to the multinational brand lobby group AIM’s call for an EU market investigation of retail alliances, EuroCommerce Director-General Christian Verschueren and Independent Retail Europe Director-General Else Groen have issued the following joint statement:

Europe’s retailers and wholesalers operate in a limited number of countries, and in a highly competitive market, with high fixed costs and low margins of 1-3%. Retail Alliances help create efficiencies and synergies in sourcing in the single market when dealing with powerful multinational brand suppliers who operate across the globe and enjoy margins some ten times higher than those of retailers. These suppliers are constantly presenting retailers with price increases bearing little connection to the product or the cost of producing it. Retail alliances also help mitigate the negative impact of territorial supply constraints imposed by large brand suppliers, which fragment the single market and lead to often significant and unjustified price differences across Europe. European retail alliances are all subject to clear governance principles to ensure compliance with EU and national regulation, including competition rules.

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"The Narratives"

EuroCommerce Narrative on Retail and Wholesale in a changing world…

The world is changing rapidly. Retailers and wholesalers have repeatedly shown how resilient and adaptive they are, and are moving ahead with embracing this change, providing value to customers, suppliers, and society at large. This great story is worth telling – both to the sector and to the wider world. And the story needs to say clearly what we want from the EU and from national governments to make our sector sustainably competitive.

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"The Narratives"