Nolan also points out that few retailers who expand internationally do so with one format – Carrefour and Tesco are the exception, rather than the rule. Many other retailers have different stores in different countries.

For Nolan the problem runs even deeper. 'Some large retailers still define their relationship with suppliers purely in terms of price. Such companies have little or no idea of what their consumers want. And it is only when there is a recession that they can be bothered to find out.
We are occasionally still told "we just sell things at a price; why would we want to know about the consumer?".'

Yet many suppliers reckon that a sea change is gradually taking place. Specialist electrical and pharmaceutical retailers now understand the
threat they face from cash-and-carry or food formats. Companies such as Boots, John Lewis, Carrefour and Quelle-Karstadt were picked out as examples of retailers who want stronger relationships.

But not all retailers are moving this way. A manager from a major food supplier said: 'Retailers such as Tesco are moving back to seeing price as the most important thing as they face more competition from Walmart.'

Bravo at Boots gave a unique insight into the frustrations retailers often feel in dealing with suppliers. Boots is keen to identify new products and services. Yet often he finds himself stymied by account managers who have little real knowledge of their own companies. It can be
extremely difficult to get access to research and development departments or to business development departments that can think laterally.

Both Nolan and Vermeulen say that they carefully assess retailer attitudes before deciding whether it is worth investing time and money in joint ventures.

Nolan says that it is vital that both the retailer and the supplier have coherent strategies that are internally aligned. There is no point in talking to a director about grand alliances, if the buyer is rewarded for buying on price. But, ultimately, Nolan says such relationships do depend upon buy-in at director level. 'Without access to the boardroom, we cannot work successfully.’ On the other side of the fence, Bravo at Boots agrees. 'We need directors in the supplier company who are prepared to push for closer links.’

For Nolan, this means always going the extra mile: 'I know of no more important job for the directors of Electrolux than forging strong and
deep relationships with retailers. You have to lead from the top if your company is to work successfully with large retailers.' Electrolux is
even prepared to pay for consultants to work within the retailer to facilitate the relationship.

That priority becomes ever higher as retail itself consolidates. Suppliers have to be one of the top three in a category to have any chance of forming the sort of deep relationship that is essential.

But to make these relationships really work, suppliers have to be truly customer-driven. This means understanding precisely what the consumer wants. It is only by doing this that suppliers can come up with compelling product offers, marketing and in-store formats.