Praktiker to reduce supplier numbers by 25%
Germany-based DIY group Praktiker is to reduce the numbers of its suppliers by 25% within the next three years. The retailer hopes to improve its margins and quality of both its private label and branded products. It plans to decrease the number of suppliers from the current 2,700 to 2,000 in a move that will place it in a better position for price negotiations.
The lower number of suppliers will help the retailer to control the quality of products and opens doors for further private label development. It plans to increase the share of private label products from 30% to 40%.
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