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Co-op and Spar strengthen buying power

The Co-op and Spar have formed a new buying alliance

It will focus on own label products and will be managed by the Co-operative Retail Trading Group (CRTG), which currently handles over £5b worth of food sales on behalf of over 3,000 Co-op stores throughout the UK. By pooling their own label volumes the two retailers expect to see valuable commercial benefits.

Jerry Marwood, managing director of Spar said: “The synergies between Spar and the Co-op are numerous which gives us confidence that this alliance will be mutually beneficial.” He added the alliance would “enhance our position and enable us to compete more effectively in the marketplace”.

Guy McCracken, chief executive, food retail for the Co-operative Group, said:: “With increasing consolidation in the sector it makes good commercial sense to build scale and improve our competitive position. Spar are long-term players with integrity, and I’m convinced there are significant benefits for both of us through this initiative.”

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