New buying group 'will benefit independents'

A new buying co-op has been formed by major wholesalers Palmer & Harvey and Makro.

Independent customers will get access to the same scale benefits currently enjoyed by multiples through the new co-op, called PalMak, the groups said.

The move follows the Office of Fair Trading's approval of the creation of the PalMak.

In a statement, P&H and Makro said: "PalMak will consist of a team of category specialists drawn from both companies to negotiate the best possible terms for their respective customers.

"It is designed to give independent retailers and catering outlets access to scale benefits currently only enjoyed by key multiple groups in order to help them compete in a continuously challenging retail environment."

P&H commercial managing director Peter Austen said: "This is an exciting opportunity which will offer significant benefits to everyone involved.

"P&H and Makro have many suppliers in common and the new buying group will allow us to develop existing relationships, increase volumes traded and improve efficiencies. This move underlines our commitment to ensuring we negotiate the best possible prices for our respective customers."

Makro's commercial director Allard Sjollema said: "This is a model we have successfully implemented across Europe with a number of different partners and we have seen the positive benefits that can be reaped from such co-operations.

"At the same time we are able to forge stronger supplier relationships and going forward we expect the new venture to create opportunities for them as the buying collaboration builds on its foundations."