Hearing on Retail Industry:Developments and Impact

CCMI Hearing

Brussels24 September 2008

The commerce sector in Europe

Employment (215 million), EU 27, 2005

14,4%

54,0%

25,2%

6,4%

14% Trade (31 million) 54% Services

25% Manufacturing 6% Agriculture

Number of companies (19.6 million), EU 27, 2005

32%

56%

12%

32% Trade (6.2 million)

56% Services (incl. construction)

12% Manufacturing

Added value per sector, EU 27, 2006

11%

67%

20% 2%

11% Trade

67% Services (incl. construction)

20% Manufacturing

2% Agriculture

Commerce: the supply chain

Market share of the top 3 retailers

Market share of producersexamples

The 2 largest producers represent 71% of the marketThe top 2 retailers represent less than 40% of the

market

Price developments Germany

Retail prices increased less than consumer prices

Breakdown of a price

Compared cost structure

Compared profitability

Supplier-Retailer relations

• Commerce = a national activity• EU Competition law

– anti-trust / against abuse of dominant position• EU law

– Unfair commercial practices– Misleading advertising– Etc.

• National legislations

Proper implementation of existing legislation No need for another layer Focus on the whole supply chain