After reading EGP capital note, I have a better understanding of the situation :
- the difference with today's situation : "3 main suppliers who currently directly supply > 50 independant stores [to move] in the SGI "buying group" with the revenue instead being directed via SGI ",
- the interest for the 3 parties involved : " this aims to create a win/win/win situation, whereby the suppliers get to deal with a single customer, of more secure financial status rather than >50 micro stores, the stores likewise consolidate more of their buying through a single store and SGI get to add scale...".
So, to get these 60 m$ additional revenues in FY 25, SGI needs to convince these > 50 independant stores to buy through SGI, rather than directly to their existing suppliers.
I wonder at what stage they are now in these negotiations.
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After reading EGP capital note, I have a better understanding of...
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