EuroCommerce Director-General Christian Verschueren is speaking at the World Retail Congress conference in London today, and said

“COVID is a global pandemic and its impact is global, particularly for a people-facing sector such as retail.  We have heard from many of our members in Europe that a worrying number of shops will not stay open once current support measures end.  This is in part the result of repeated and unpredictable government lockdowns over the last 18 months, but also a symptom of the acceleration by the pandemic of the fundamental transformation of the sector to digital and online sales.  Retailers small and large, suffering from historically low margins, need urgent government support to make the investment necessary for digitalisation and sustainability. This is an economic and social imperative needing decisive action not only for our sector but all the other parts of the economy and the local communities we serve.”

He is speaking to OECD G20 and G7 sherpa Nicolas Pinaud, and in a panel with Matt Shay, President and CEO of the US National Retail Federation, and Helen Dickinson, CEO of the British Retail Consortium, on issues surrounding the measures needed to maintain the signs of positive recovery in recent months, in part due to government support.

Commenting today on the creation of the new Epic Partners retail alliance, EuroCommerce Director-General Christian Verschueren said:

“This new development demonstrates the important role retail alliances play in supporting competition and providing better prices and more choice to consumers. The efficiencies and synergies in sourcing in the EU single market can help balance the significant market power of multinational brand suppliers who operate across the globe. As we have seen recently, these large manufacturers are again piling on pressure, sometimes even collectively, for unreasonable price increases. Alliances are consumers’ best allies at a time when many families are still feeling the impact of the COVID pandemic. These alliances help address the impact of manufacturers’ active fragmentation of the single market, which is costing consumers at least €14 billion a year.”

The new alliance will negotiate contractual arrangements for complementary international services and marketing activities with the largest international brand manufacturers, with a focus on packaged processed products. Vegetables, fruits and unprocessed foods are not part of these activities, and the alliance will have no dealings with SME suppliers or farmers. The Commission has on numerous occasions recognised the pro-competitive role that retail alliances play within the strict boundaries set in competition rules, including a recent report by the European’s Joint Research Centre which underlined their positive role in increasing consumer welfare.

Retailers and wholesalers across Europe are already working hard to contribute to reducing greenhouse gas emissions. Speaking today, EuroCommerce Director-General Christian Verschueren said:

“Our sector has been active for many years in seeking to reduce its impact on the environment, promoting sustainability in its supply chain, its own operations, and with customers. We therefore support the Commission’s Fit for 55 package as a concrete set of measures to meet the Green Deal target of a 55% reduction in EU emissions of greenhouse gases by 2030. We share, however, other sectors’ concerns that the carbon border adjustment mechanism should be designed to be compatible with WTO rules and avoid new areas of dispute with trading partners.”

Retailers and wholesalers have shown that they take sustainability and climate change seriously, setting clear and measurable targets to reduce the impact of their operations and the products they sell. Our companies have also been proactive in setting clear targets for becoming carbon neutral, and in the transition to sustainable transport and increased energy efficiency. They are installing new refrigeration equipment, charging stations in their supermarket car parks, and using more renewable energy. They are continuously improving the environmental performance and driving eco-design of their products.

Speaking on the launch today of proposed revision of the General Product Safety Directive, EuroCommerce Director-General Christian Verschueren said:

“We wholeheartedly support updating the Product Safety Directive. This is long overdue: since it was first adopted 20 years ago, the market has changed dramatically, in particular due to digitalisation. This has further been accelerated by COVID, and we need rules which can address the many new ways in which products are bought and sold. The influx of products bought online from traders outside the EU which do not meet EU standards is one of these changes which needs effective action”.

Consumer demand is driving innovation in retail, and our sector is responding with a diverse range of digital and omnichannel options to suit individual consumers’ needs and expectations. We need EU policy and regulation to reflect these trends, and retailers need a coherent framework that:

• ensures a high level of consumer trust that the products they buy are safe;
• balances responsibilities for all market players depending on their place in the supply chain, while ensuring their proportionality;
• provides for harmonised and clear risk assessment rules for effective enforcement and recall of dangerous products;                                                     
• creates a level playing field for all businesses selling to EU consumers - whether they are established in the EU or outside;
• uses to the full the possibilities of digital technology in alerting the public to risks;
• works hand in hand, and does not overlap with the rules on platform liability under the Digital Services Act.

We, the coalition of European business associations representing different European sectors call for the swift ratification of the EU-Mercosur association agreement. With the political agreement reached already 2 years ago (June 2019), now is the time to move forward and unlock the manifold mutual benefits that this agreement will deliver.

The EU-Mercosur agreement:

is the largest and most ambitious trade agreement ever negotiated by both sides, provides regulatory certainty for both trade in goods and services, and establishes better trade links between countries of respectively 440 and 260 million citizens. The agreement will unlock growth and help both regions to recover from the current economic and public health crisis, invest in the green transition and diversify global supply chains and our core market base.

- includes the most advanced sustainable development provisions that will foster partnership, help mitigate climate change and bind both sides to effectively implement the Paris Agreement. Unilateral legislative initiatives at EU level, such as upcoming initiative on deforestation and the review of existing rules on timber trade and fight against illegal logging will enhance this cooperation and effectively ensure that exports to the EU will not contribute to deforestation or soil degradation.

- includes enforceable commitments on workers' rights and environmental protection through a dedicated dispute settlement mechanism that includes an active role for civil society organisations and calls on the expertise of international bodies, whose reports and recommendations must be made public. In case of non- respect of any of these provisions an automatic mechanism will trigger formal government consultations.

EuroCommerce is pleased to announce the election at its General Assembly today of Juan Manuel Morales as its new President. Mr. Morales will take up his three-year mandate from 1 July 2021.

Mr. Morales commented upon his election:

“I will want to focus on guiding an important organisation representing the Europe’s largest private sector employer, a driver of growth for a wide range of other ecosystems, and a linchpin of local communities. We are under massive competitive and regulatory pressure in a low margin sector, which is often overlooked by policymakers. This is something we must, and will work to change. I am proud therefore, and deeply honoured, to have been elected to continue and take forward the valuable work undertaken by EuroCommerce members and staff, and, above all, by my excellent predecessor Régis Degelcke, to whom I extend my heartfelt thanks”.

“The COVID-19 pandemic has been a challenge for everyone in retail and wholesale, particularly in non-food. The very existence of thousands of SMEs, who represent 99% of our sector, is at risk. In addition, retail and wholesale face the dual challenge of the digital and green transformation, both of which require significant investment.” 

In handing over the baton as President, Régis Degelcke added:

“I believe EuroCommerce has built up further its reputation as a strong organisation representing an essential ecosystem for the European economy and a provider of a vital service every day to the people who really matter – Europe’s 450 million consumers. It has worked hard to underline how our sector has faced the challenges of the last 18 months, and to get across important messages about its needs, both financial and policy. All of us are looking forward to working under Juan Manuel’s leadership, whose ambition for, and commitment to the industry will help EuroCommerce reach even greater heights.”