Business case
We were engaged to determine what synergies could be developed from the potential merger of the purchasing departments of two competing retailers.
Retailers typically generate low operating margins, and their capability to purchase at the best price from suppliers is one of their major competitiveness drivers. In retail, rebate structures are typically highly complex, and assessing purchasing synergies requires in-depth expertise and modelling skills.
We adopted a ‘black box’ approach to guarantee full confidentiality for both parties. Our work and specific confidentiality practices ensured that each retailer would not have access to the purchasing conditions of the other, in compliance with both competition and trade laws.