Swiss Coop (CH)-owned cash & carry business Prodega/Growa and its delivered wholesale division Howeg are to merge next year, adopting a common strategy.
Prodega/Growa and Howeg are two banners under the Coop (CH)-owned Transgourmet Holding cash & carry and wholesale group, the second-largest in Europe by sales. Both retail banners are the leaders in the Swiss market, and the coming together of the companies is expected to enhance synergies.
The new common product range, including joint private label brands, will be comprised of over 30,000 items, 20,000 of which will be delivered directly.
To meet increased demand for regionality and freshness, Prodega/Growa/Howeg will open four new regional warehouses in the country at Quartino, Satigny-Genève, Chur and Neuendorf by the end of 2013. The locations of these new facilities will see delivery routes shortened, and greater supply chain efficiency. Satigny-Genève will also be the site of a new Prodega cash & carry outlet, due to open in May 2013.
The retailers said further synergies will be gained with the opening of a merged headquarters in 2015 at current Prodega/Growa base Moosseedorf. The Howeg headquarters and central warehouse at its Winterthur headquarters will be closed by the end of 2015, although a regional warehouse will open there.
The current managing directors of the two banners, Daniel Böhny (Howeg) and Philipp Dautzenberg (Prodega/Growa) will make up the management team of the new group. (4 Dec)
© 2012 - ESM: European Supermarket Magazine
