RGDATA is a member of Independent Retail Europe (IRE) which represents the interests of groups of independent shops. IRE is due to meet with the new EU Commission Head of Unit responsible for retail and is seeking member views on issues relating to Territorial Supply Constraints.
Territorial Supply Constraints is the situation where a retailer is asked to only purchase from the supplier’s operations located in that country. e.g. as a theoretical example a retailer located in France is obliged to buy Coca Cola from Coca Cola France, rather than the Coca Cola office in the country where it is cheapest to source the product.
The Commission has provided IRE with the following request:
We are particularly interested in learning whether your members are affected, and how regularly, by territorial supply constraints. In particular, we would like to understand:
- How commonly directions from certain manufacturers to contact only designated suppliers are received.
- How are such instructions received (e.g. verbally).
- What are your members’ experiences when they try to contact suppliers in other member states.
- How frequently and under which circumstances do your members actively seek to source products from other Member States.
- What are the reasons given by suppliers for directing retailers to specific offices.
- What other practices have your members come across that indirectly limit their ability to parallel import products (e.g. differences in labels, etc.)
- In addition to restrictions placed by suppliers, are there any national or local requirements that prevent your members from parallel importing certain products.