Retail buying group power opened up in report

31 March 2017

European supermarkets such as Kaufland, Metro, Ahold Delhaize and Edeka are cooperating as part of ‘international buying groups’ (IBGs) to expand their buying power, with potential negative consequences for suppliers and farmers, says new research by SOMO (title of the report: Eyes on the price).
IBGs represent a potential consumer turnover of up to €178 billion annually, and their main focus is on obtaining discounts and benefits from suppliers. The considerable discount that IBGs negotiate may have numerous direct and negative effects on suppliers of packaged products and their packaging suppliers. This may be true especially in the case of private label, retailer-specific products.
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