Wholesaler Eurocash Group in Poland has set up a purchasing alliance among its local retail chains associates. The alliance is called Równi w Biznesie (Equal in Business) and includes 15,5000 franchise and partner stores.
This move comes in response to the intensifying price competition within the country and the growing dominance of discount chains. By analysing disparities in product offerings between supermarkets, discounters, and local stores, Eurocash aims to empower its partners with stronger negotiating leverage for better trading terms.
On the international front, the European Marketing Distribution (EMD) group has expanded its reach by welcoming South Korean Lotte group as a new associate member. Lotte is one of the largest retailers in South Korea, with branches in China, Indonesia, Japan and Vietnam. It has a turnover of around €50 billion. The retailer is also involved in convenience chain 7-Eleven.
Lotte wants to further develop its own brand with the help of EMD. For European members of the association, the collaboration offers potential opportunities for the introduction of Asian concepts.
The EMD alliance consists of 14 members and partners, covering 250 grocery retail chains in 18 countries, representing 56,000 points of sales, cumulating a potential consumer turnover of €175 billion in Europe.