Poland's Eurocash Group has created a retail purchasing group - Równi w Biznesie - as it seeks to offer customers quality products and reasonable prices.
All companies operating retail chains associated with the Eurocash Group have signed a declaration on joining the purchasing group, the company noted.
In total, it includes about 15,500 franchise and partner outlets, or as many as one-fourth of all grocery shops in Poland, excluding specialist shops and petrol stations.
The purchasing group has been established amid a prolonged price war in the market and the increasing market position of discounters.
Paweł Surówka, CEO of Eurocash Group, stated, "Creating the largest purchasing group, in cooperation with all chains, is a huge achievement showing the strength of the independent market, as well as the commitment of all chains that – for the good of millions of consumers – decided to work together and join the group. I believe that together we are able to fight for high quality and good offers for consumers in our country"
Product Offering
Eurocash Group noted that it has been analysing the differences in the product offering of manufacturers for supermarkets and discount stores versus local stores in a bid to achieve more attractive and equal conditions for the independent market.
The 'Equal in Business' manufacturers' ranking, conducted by the company for years, revealed significant differences in the terms of cooperation offered to local stores by individual manufacturers.
Currently, the price positioning of manufacturer brands on the independent market is in many cases extremely uncompetitive for discount stores.
Moreover, chains acting alone are not always able to negotiate satisfactory commercial conditions, the company added.
The ongoing price war has further exacerbated existing disparities in the market.
Eurocash has invited all its chains, including Delikatesy Centrum, Duży Ben, ABC, Groszek, Euro Sklep, PSH Lewiatan and PSD Gama, to join the purchasing group to address these issues.
Purchasing Group
The establishment of the purchasing group will offer local store owners the opportunity to negotiate for better trading conditions.
For producers, it will ensure more effective implementation of contractual arrangements by stores.
Marcin Celejowski, member of the Eurocash Group management board responsible for the area of commercial purchasing, explained, "Suppliers, chains and entrepreneurs running local stores have a common goal. It is to ensure the best product offer, prices and other shopping conditions for consumers.
"Therefore, the basic assumption of our purchasing group is the win-win principle. Its activities are to bring real benefits to all market participants."
