Dutch supermarkets Albert Heijn and Jumbo joining international buying alliances

The recent news that Dutch supermarkets Jumbo and Ahold Delhaize are joining international purchasing alliances has major implications for the competitive landscape in the Netherlands. These new purchasing alliances, such as Everest, Epic Partners, Eurelec and AMS, provide a stronger bargaining position with manufacturers, similar to the bargaining power of the European Union compared to other trading blocs.

This may lead to the elimination of cross-border price differentials and makes it easier for retailers to ask manufacturers to adapt product packaging so that the same products can be sold at comparable prices in different countries. While this is good news for supermarkets, consumers and policymakers, it also raises concerns for major food manufacturers. For the Netherlands, this means that Albert Heijn and Jumbo are strengthening their competitive position against other buyers, especially discounters Aldi and Lidl. Ahold Delhaize’s entry into Eurelec puts it on an equal footing with the Schwarz group (Lidl, Kaufland). This strong position of the price fighters is why German supermarket companies such as Edeka and Rewe are driving the new generation of cross-border purchasing clubs. Superunie, an old-fashioned cross-border purchasing club, will be concerned about the developments around the purchasing of Albert Heijn and Jumbo, as the individual members are smaller players on a European scale. What approach it might take is not yet clear.

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