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Asda quits buying group to prioritise direct model

Retailer has left the European Marketing Distribution buying group to prioritise and strengthen its direct to supplier model

Asda quits buying group to prioritise direct model

Asda is prioritising its direct supplier relationships

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Asda has left the buying group European Marketing Distribution (EMD) as it moves to prioritise direct relationships with suppliers.

The retailer said it has strengthened its sourcing arm IPL and leverage through parent company Walmart, and has made “significant changes” to its buying model since the beginning of 2016 when it first joined EMD.

Asda chief merchandising officer Andrew Moore said: “EMD was the right partner for us at the time and they helped us strengthen our own buying capabilities. Our approach has evolved over the last few years but we regard EMD as a great organisation and leave having enjoyed a positive relationship with them.”

In a statement, EMD said it respected the decision and said it "wishes Asda all the best for the future".

EMD sources private label and branded products from across the world for a range of global retailers and trading groups. Members include Russia’s Lenta, Superunie in the Netherlands, Groupe Casino in France and Woolworths in Australia and New Zealand.

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