Spain-based retailers DIA and Eroski, who signed a cooperation agreement in June 2015, have announced they have signed a ‘statement of intent to implement a new project, focused on developing their own brand of products’.
Agreement focused on driving price/quality ratio
Announcing the agreement, DIA and Eroski said that it was aimed at improving the overall quality of their private label products, while also keeping prices competitive. This latter element will be driven by the companies collaborating to ‘purchase… other materials and supplies’ that will enable them to improve the price/quality ratio. Despite the agreement, DIA and Eroski stressed that fresh products – perishables, oil, milk and eggs – would be excluded from the agreement, while both would maintain independent sales policies for their private label ranges.
Cooperation agreement builds on existing arrangement
The agreement builds on an existing agreement between the two companies, which was focused on major Spanish and international brand suppliers. In its 2016 results announcement DIA highlighted the benefits that it was generating through its Third Party agreements, of which its previous cooperation with Eroski was one. The retailer has stated that in 2017 it is aiming to grow gross sales under banner by ‘mid-single digits and support a stable margin, with the latter likely to be aided by this new agreement with Eroski.