The Europe Union measure, implanted to weaken competition by banning co-operation between independent retailers on joint purchasing of goods and services from suppliers, raises concerns for Retail Grocery Dairy & Allied Trades Association (RGDATA).
The Business to Business Unfair Trading Practices in the Food Supply Chain, proposed by the EU Parliament Agriculture Committee earlier this month, is going to offer Irish consumers less choice, reduced competition and ultimately higher prices for food.
This sector currently accounts for over 30% of the retail grocery sector in Ireland.
Calling For Support
Tara Buckley director general of RGDATA, the representative association for 3,500 independent family owned shops, convenience stores and supermarkets throughout Ireland, said that this would seriously undermine the independent retail grocery sector and lead to a market dominated by the international multiple chains.
Also, the move is going to strengthen the already concentrated market position of large suppliers, many of whom wield excessive market power already.
“Independent, family owned shops and supermarkets provide competition, choice and value in the Irish retail grocery market," said Buckley.
"Banning joint purchasing by independent retailers will harm consumers, damage choice and ultimately lead to a more concentrated retail grocery market in Ireland.”
RGDATA has called on Irish MEPs, to resist the proposal and is urging the Irish Government to campaign against the proposal given its hugely harmful impact for the independent retail sector in Ireland.
© 2018 Checkout – your source for the latest Irish retail news. Article by Maria Cabecos. Click subscribe to sign up for the Checkout print edition.