German retailers unite to form a collective purchasing agreement with French counterparts under the name "Concordis" alliance
The European retail landscape is undergoing a significant change with the formation of a new purchasing alliance called Concordis. This alliance, born from the merger of RTG International and French chains, brings together some of the continent's largest retailers, including German retailers Rossmann, Globus, and Netto, as well as French retail giants Carrefour and Cooperative U [1][2].
The founding partners of Concordis generate an external turnover of over 125 billion euros, making it a formidable force in the retail industry [4]. The alliance aims to strengthen the negotiating position of its members against consumer goods conglomerates by pooling purchasing volumes across two of Europe’s largest consumer markets [1][3].
By collaborating, Concordis members hope to achieve cost reductions, increase productivity, and improve operational efficiency through consolidated procurement efforts [1][3]. The alliance also seeks to enhance product quality and support innovation, responding more effectively to consumer expectations by strengthening collaboration among leading European retailers [1].
Forming Concordis is a strategic move to balance the growing pricing power of fast-moving consumer goods (FMCG) suppliers, which can otherwise squeeze retail margins [3][4]. The partnership between German and French retail groups signals a decisive step toward European retail consolidation, potentially setting a model for further collaborations that could reshape the retail purchasing landscape across the continent [1].
The competition authorities in Germany and France need to review the plans for the Concordis alliance. However, the alliance's CEO, Stephanie Lotter of Globus Markthallen Holding, stated that the collaboration with international partners is to secure their competitiveness in a challenging market [5].
Similarly, other retailers are forming purchasing cooperatives to strengthen their negotiating position with suppliers. For instance, the Epica alliance includes retailers from Germany (Edeka) and Switzerland (Migros), while the Eurelec alliance includes retailers from Germany (Rewe) and other countries (Ahold Delhaize) [2].
In summary, Concordis helps these retailers compete more robustly at a continental scale by lowering procurement costs, improving product offering, and resisting supplier-driven price pressures, thereby potentially boosting their long-term competitiveness and customer value [1][3][4]. This trend of retail consolidation and collaboration is expected to continue as retailers seek to navigate the complexities of the modern retail market.
[1] https://www.retail-insight-network.com/news/german-and-french-retailers-join-forces-to-create-concordis-a-new-european-purchasing-alliance/ [2] https://www.esmmagazine.com/news/german-french-retailers-form-european-purchasing-alliance-concordis [3] https://www.reuters.com/article/us-retail-mergers-concordis-idUSKBN26R21G [4] https://www.reuters.com/article/us-retail-mergers-concordis-idUSKBN26R21G [5] https://www.reuters.com/article/us-retail-mergers-concordis-idUSKBN26R21G
- Recognizing the need for a stronger negotiating position in the face of growing pricing power from fast-moving consumer goods (FMCG) suppliers, Concordis, a new purchasing alliance formed by the merger of RTG International and French chains, is aiming to establish community policies that could reduce procurement costs, respond more effectively to consumer expectations, and potentially boost their business efficiency through consolidated procurement efforts.
- To further bolster their position in the retail industry, Concordis is considering investing in vocational training programs for their employees, ensuring they have the skills necessary to keep pace with the rapid changes in the industry, and garnering the finance needed to expand and innovate, potentially reshaping the retail landscape further by attracting new retail partners.
