New research proves that buying alliances do lead to lower prices for consumers: customers of German supermarket chain Edeka paid on average 12% less for products the retailer purchased through retail alliance AgeCore.
Controversial alliances
International buying alliances of European food retailers are controversial: according to some brand manufacturers, they only serve to increase the profit margins of the retailers involved, and only add costs to the supply chain. According to retailers, however, alliances are a necessity in order to create a more level playing field in negotiations with multinationals and lead to lower sales prices in the stores.
