Germany: End of an alliance

Eurobaustoff Handelsgesellschaft mbH of Bad Nauheim and Toom Baumarkt/Rewe of Cologne have decided to wind up their joint strategic alliance at the end of 2008. As announced in a Eurobaustoff press release, both sides are in agreement that the benefits from their alliance are not sufficient for them to continue with the cooperation, which is expensive in terms of both personnel and time. The alliance was formed with the aim of permanently boosting the competitiveness of all those concerned in the retail sector and of further strengthening their position as powerful builder centres in the regional markets. After two years of concentrated effort neither side is satisfied with the benefits created by the alliance. Their growth perspectives are regarded as too minimal and the purchasing advantages have not achieved the hoped-for volume.