Migros joins AMS

After a one-year trial run, Swiss retail giant Migros will expand its activity abroad by entering the European buying alliance AMS (Associated Marketing Services). The expectation is to strengthen its position and receive better prices, in the order of 10% savings.

"Thanks to the higher volume of buying, we can make savings which we will pass on directly to our customers," said Migros marketing director Urs Riedener.

AMS encompasses some 10,000 stores in 14 European countries and includes Ahold, UK grocer Morrisons, Finland-based group Kesko and Spanish retailer Caprabo. The aim of the alliance is to ensure the best terms and conditions for buying across a range of food products, such as sugar, rice and pasta, as well as extensive non-food ranges. However, the Swiss co-operative's buying policy will still exclude any product that includes cage eggs or does not meet Swiss legal requirements.

The total Migros business has sales of more than €12.4billion. The company also operates a food manufacturing business, which supplies a substantial proportion of the goods sold in its stores. The business includes six major groups, such as meat subsidiary Micarna, and bakery arm Jowa.

(Source: Just Food)