Jumbo seeks buying power in alliance with Edeka
Jumbo needs international buying power to offer customers lower prices. The chain would therefore join Everest, the buying combination set up by German market leader Edeka.
Jumbo is exploring the possibilities of an international purchasing cooperation. The retailer confirmed this to Dutch trade magazine Distrifood. The supermarket chain wants to further distinguish itself by focusing more on the combination of price, range and service. Scaling up through an international cooperation would contribute to “a broad, relevant and affordable assortment“, says the chain.
Names of possible partners Jumbo does not want to mention, but according to Lebensmittel Zeitung, the Dutch number two would become the fourth member of the Everest buying consortium, set up by German market leader Edeka, Picnic and Système U. This grouping, led by top executive Gianluigi Ferrari, negotiates uniform European net-net prices with some 44 brand manufacturers. Including Jumbo, Everest’s members would represent a combined turnover of 200 billion euros.
That Jumbo did not join an international alliance until now may be called remarkable. With a good ten billion in sales, the company is big in the Netherlands but very small in Europe, while having to compete with retail giants such as Ahold Delhaize, Aldi and Lidl.
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