French retailer Intermarché and Spanish peer Dia have announced the creation of a Joint Purchasing Center to gain negotiating strength and compete more effectively with the two leading retailers in Portugal, Pingo Doce and Continente.
On behalf of Intermarché and Dia, the new organization called Cindia will now negotiate and buy products from the largest suppliers of Portuguese and international brands.
Not included in the deal are fresh produce, fish and all items produced by small and medium enterprises.
According to a joint statement, the aim is to optimize purchasing conditions for both insignia, while improving delivery of services to providers. This cooperation covers only Portugal and will allow the two partners to provide qualitative and quantitative benefits to consumers, "while preserving the competitive dynamics generated by the insignia of both groups".
Intermarché, a supermarket chain that is managed by independent entrepreneurs, has 232 Mosqueteiros stores in Portugal and a volume of €1.34 billion. For its part, Dia operates the Minipreço insignia and has 630 stores, achieving a turnover of €816 million last year.
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic
