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Retail alliances: Balancing negotiating power in the supply chain

Commenting on the report issued today by the European Commission Joint Research Centre on retail alliances and their impact on the food supply chain, EuroCommerce Director-General Christian Verschueren said:

“The thorough and evidence-based JRC report helps clarify the reality of retail alliances and confirms that there is little evidence of an impact on farmers, and that existing regulation is sufficient. Retailers operate on low margins. Alliances allow them to slightly balance the stronger negotiating power of large suppliers to provide consumers the products they want at a reasonable price. The large multinational suppliers operate globally, achieve significant margins and have the power to set conditions in the supply chain. Most retailers are only present in a limited number of countries in Europe and join alliances to help create a reasonable basis of negotiation with these large manufacturers, and pass on the benefit to the consumer.”

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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"