1. Presentation to the Sherpa on cooperation
Buying alliances are different and act in different ways
- Sherpa Meeting -

2. About us
The only European association for groups of independent retailers
16 companies:

3. About us
7 associations:

4. Cooperation is done at different levels
Regional (e.g. cooperation in Nordrhein Westphalia)
National (e.g. cooperation across France)
European (e.g. cooperation across borders)
Groups of independent retailers (retailer cooperatives, purchasing groups, central administration) usually cooperate at regional or national level.

5. Underlying rationale for cooperation
To create countervailing buying power with big brand manufacturers and better prices as a result
Independent retailers can compete with international retail chains
Efficiencies in administration/purchasing

6. Types of cooperation in groups of independent retailers
Joint purchasing, advertising, marketing, etc.
Investing in logistics + IT (transport, telecoms...)
New distribution centres
Development of private labels
Financial services/payment guarantees
Product testing for safety etc.

7. Cooperating solves many problems
Lack of economies of scale
Inefficient supply chains
Innovation difficulties
Compliance burdens
Difficult to get financing

8. Cooperating solves many problems
Improve know-how (food safety), support and skills
Limited online visibility
Overall lack of competitiveness compared to international chains

9. EU alliances: Members work through alliances of independent retailers
Improved product quality
Efficiencies generated in purchasing resulting in lower consumer prices
More level playing field with international brand manufacturers that increasingly grow in size
Strengthening of competition against international retail chains + creating an alternative to their aggressive expansion

10. How it works: branded goods
Alliances offer international and sophisticated services e.g. marketing and distribution
Develop improved category strategies, joint research and development
Efficiencies on different levels (logistics, audit, branding, etc.)

11. How it works: private labels
Alliances invite suppliers to tender for private labels
Strive to realise efficiencies in different categories (audit labour standards, supply certainty, transport etc.)
Offer suppliers access to a broad scope of retailers, markets and PL activities (use available capacity by supplying an alliance)

12. Benefits of these alliances: manufacturers
Optimise marketing activities such as product launches
Expand geographical presence
Support market entry (e.g. of SMEs)
Rapidly get experience in new markets, increase sales, increased access to process innovation, etc.

13. Benefits of these alliances: consumers
Increased product choice
Increased access to product innovation
Improved product quality
Higher quality of operations/logistics improving product availability
Improved purchased conditions/efficiencies e.g. in terms of logistics passed on

14. Thank you for your attention!