Musical chairs in purchasing alliances continue

Retailers’ international buying alliances are changing constantly, both those that are focused on big manufacturers’ brands and on private label. Here is an update of the changes that were announced in the past couple of months.

Rossmann, Germany’s second drugstore operator, is partly leaving RTG, the Retail Trade Group, at the end of this year. The retailer will cease the procurement of drugstore goods through RTG because “the strategic focus and the associated importance of the drugstore category is very different in individual companies.” Rossmann will continue buying food ranges through the alliance.

EMD is losing one of its powerful members with Kaufland leaving the alliance to switch to the Agecore alliance on 1 January 2025. Kaufland was worth more than 20% of EMD’s purchasing volume, which sees the volume reduced to around €90 billion. However, part of EMD’s loss in purchasing volume is compensated by the entry of above mentioned RTG in the alliance, at the same time.

Purchasing association Everest is going to collaborate closely with Swiss retail Migros in Asia. Everest Asiahub Limited was set up in Hong Kong, at the same address as Migros’ Asian purchasing. Some of the Migros employees will switch to Everest’s Asian hub. By purchasing together and directly in the Asian market, skipping the middlemen, the retailers expect to improve margins.

Migros France, a subsidiary of Swiss Migros, has announced that it will join Coopérative U at the beginning of 2025. The deal will enable Migros France to leverage Coopérative U's logistical, technical, and IT resources, while maintaining its managerial independence. Additionally, this transition will bring an evolution in the product offerings, notably with the inclusion of a selection of wines and spirits. The announcement comes a few months after the independent French regional group Schiever joined U.