ADM Londis and Stonehouse sign strategic membership agreement
New agreement will increase the Stonehouse Group's turnover by one third and push retail sales towards €1.5 billion
19 December 2013
ADM Londis plc and the Stonehouse Group announced today (19 December) that they have reached an agreement to combine their buying power in a move that will see the Stonehouse Group expand its membership to include ADM Londis.
Stonehouse is an independently owned wholesale grocery and food service company. Comprising a network of 25 family run businesses operating out of 31 wholesale depots, its portfolio also includes symbol group stores, Costcutter and Gala, along with food services company, Horeca, and the long established own label brands Homestead and White Hat.
ADM Londis plc provides independent retailers with franchise opportunities in both the convenience and supermarket retail segments and its 200 stores nationwide will increase the Stonehouse Group’s turnover by one third and will push the group’s retail sales towards €1.5 billion through its 600 symbol stores nationwide.
The agreement will have no impact on ADM Londis’ ownership by its franchisees and participating symbol groups will continue to compete with one another but with the benefit of improved buying terms and enhanced opportunities for supply chain synergies.
Commenting, CEO of Stonehouse, Tom Shipsey said: "This agreement is great news for Stonehouse members, for our retailers both symbol and independent and for the Irish convenience retail sector. Adding the strengths of Londis to those of Stonehouse will help strengthen our retailers, as they compete with international multiple and discount chains. A healthy, competitive sector is very important to the supplier base, our customers and to the wider economy as a whole."
Londis’ CEO, Stephen O’Riordan described the move as "a step change for participating symbol group shops that are integral to the communities they serve. Arising from this agreement, local, independently owned stores will have the purchasing power of the major retailers but with the convenience and service that appeals to consumers. At Londis we see this deal delivering even lower prices to our consumers and enhancing margin and efficiency for our retailers."