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HORSENS - We're in something as rare as a win-win-win situation.
That's what the CEO of Reitan Distribution, Henrik Burkal, says after it came out last Tuesday that the distributor loses the supermarket chain Løvbjerg as a customer.
Løvbjerg has for many years used Reitan Distribution as main supplier for its 16 stores but when the current contract expires next New Year, Dagrofa becomes the wholesaler that will deliver groceries to the stores. Løvbjerg has from then on signed a new five-year contract with Dagrofa.
Right for Løvbjerg
Although it is not small change that are at stake - Løvbjerg's stores turn over one billion kr annually, Reitan Distribution takes news:
- Where we are very focused on discount, Løvbjerg thinks of a more supermarket road, and at that point I think the switch to Dagrofa is right for Løvbjerg, says the director.
Reitan is among others parent company and supplier of Rema stores.
- Rema are many shops with few number of items, and Løvbjerg are a few shops with a lot of items. Therefore, I believe this strategically fits best to everyone, explains Henrik Burkal.
Growth compensates for lost Løvbjerg turnover
In addition to discount, convenience is (ready-made foods) also an area Reitan rates strongly with customers such as 7-Eleven and the service station stores Q8, OK Plus and Circle K.
- Recently we acquired 72 Circle K stores from Dagrofa, so clients have gone both ways. And as it becomes now, I believe we will all have better focus and more pure businesses, says Reitan's manager.
He adds that in 2016 Rema had higher prosperity in own turnover than Løvbjerg's total purchases and he expects that this growth will continue. Even after the end of 2017 which will wave a goodbye to Løvbjerg as customer.
- But it happens quite undramatic. We have cooperated since 1994 and have continued to cooperate on some properties, adds Henrik Burkal.